Disaster for Disney! Disney+ subscriptions TANK and parks lose 600 million! Disney stock plummets!
The Walt Disney Company recently released their second quarter earnings for fiscal year 2021 and they revealed their revenue dropped by over $600 million compared to the first quarter.
Disney CEO Bob Chapek prefaced the report saying, “We’re pleased to see more encouraging signs of recovery across our businesses, and we remain focused on ramping up our operations while also fueling long-term growth for the Company.”
He added, “This is clearly reflected in the reopening of our theme parks and resorts, increased production at our studios, the continued success of our streaming services, and the expansion of our unrivaled portfolio of multiyear sports rights deals for ESPN and ESPN+.”
At the end of the first quarter, Disney reported they earned revenue totaling $16.249 billion with $12.661 billion coming from Disney Media and Entertainment Distribution and $3.588 billion from Disney Parks, Experiences and Products.
In contrast, their recently released second quarter numbers detail their total revenue for the quarter dropped to $15.613 billion. The Disney Media and Entertainment Distribution segment had revenue of $12.440 billion and the Disney Parks, Experiences and Products brought in $3.173 billion.
That means Disney’s revenues decreased $636 million in the second quarter. Not only did they decline $636 million from the first quarter to the second quarter, but they declined over $2.4 billion from the second quarter of 2020. Disney posted second quarter revenue of 2020 at $18.024 billion.