Disney takes $5-bn hit but Covid-19 pandemic impact not as bad as feared

Walt Disney Co on Tuesday avoided the unmitigated disaster some investors feared as it eked out an adjusted profit amid the coronavirus pandemic that shut down parks, movie theaters and sporting events across the globe.

Disney’s quarterly profit of 8 cents per share on an adjusted basis beat expectations for a loss of 64 cents, sending the stock up 5 per cent in after-market trade.

The company took a nearly $5 billion charge due to the pandemic and shifting media habits. Covid-19 wiped out $3.5 billion in operating profit in the parks division.

“The majority of businesses worldwide have experienced unprecedented disruption as a result of the pandemic,” Disney Chief Executive Bob Chapek told analysts. “Most of our businesses were shut down, and this had a huge impact.