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Walt Disney (NYSE: DIS) Thursday was a stock on the rise in post-market trading, following the overtime fourth quarter release of fiscal 2020 results.
For the quarter, the entertainment giant suffered a 23% decline in revenue to $ 14.7 billion. The bottom line plunged violently into the red, with a continuing operation loss of $ 710 million versus a year-ago profit of $ 777 million. When adjusted for certain items, the former fell to a deficit of $ 0.20 per share.
Image source: Walt Disney.
However, analysts expected far worse from Disney. On average, they expect only $ 14.2 billion on the top line and a much higher adjusted net loss per share of $ 0.71.
What helped lift the company was the Disney + video streaming service, which increased the number of paid subscribers to 73.7 million. This means that the service – launched only last year – continues to grow significantly, as that number was over 60.5 million in early August.
As a result, Disney’s international and direct segment – which includes Disney + – recorded revenue growth of 41%, to $ 4.85 billion in the quarter. This was the best of the four segments. Media networks were the only ones to register a gain (11%, at $ 7.21 billion).
Meanwhile, parks, experiences, products, and studio entertainment (i.e. movies) – both severely injured by the coronavirus pandemic – dropped precipitously, by 61% and 52%, respectively.
Disney’s struggles prompted the company to suspend its half-yearly dividend. The company said this is being done “in light of the continuing impact of COVID-19 and the Company’s decision to prioritize investment in its consumer-directed initiatives.”
But investors seem to find solace in better-than-expected results and Disney + data. On Thursday, in post-market action, the shares were up more than 3%.
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