The entertainment giant reported second quarter earnings of 60 cents per share, a 63% decrease from the year prior, on revenue of $18.01 billion. Analysts were expecting the company to report earnings of 88 cents per share on revenue of $17.81 billion.
Shares were lately trading down 2.9% after hours to $98.15.
“While the COVID-19 pandemic has had an appreciable financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and emerge from it in a strong position,” said new Disney CEO Bob Chapek.
Revenue in the quarter rose 21% despite the coronavirus headwinds, thanks partially to Disney's direct to consumer offerings.
In April, Disney announced that its streaming service Disney+ had already garnered 50 million paying subscribers in the U.S. and Western Europe, less than six months after launching the service as one of the main competitors to Netflix (NFLX) .
Disney's direct-to-consumer segment, which includes Hulu, ESPN+ and Indian service Hotstar, garnered $4.123 billion in revenue in the quarter, with the average subscriber paying $5.63 a month for Disney+, according to the company.
“Disney has repeatedly shown that it is exceptionally resilient, bolstered by the quality of our storytelling and the strong affinity consumers have for our brands, which is evident in the extraordinary response to Disney+ since its launch last November,” Chapek said.
Meanwhile, the company's theme parks segment suffered a 10% decrease in revenue to $5.5 billion while theme park operating income fell 58% to $639 million. Operating income for Disney’s film division fell 13% to $466 million because of cancelled openings, while Disney’s media networks segment’s operating income grew 8.7% to $2.38 billion, despite weakness at ESPN, which has had little new sports content to broadcast.
Because of the coronavirus pandemic, Disney's domestic parks and resorts, cruise line business and Disneyland Paris have been closed since mid-March, while the company's Asia parks and resorts shuttered earlier.
Disney shares closed the regular trading day down nearly 2% and the stock has fallen nearly 30% year to date.