Disney's revenue reportedly dropped more than 90 percent in the second quarter of its fiscal year as the coronavirus pandemic forced parks to close and affected every aspect of the media giant's business.
As The New York Times reported, the company released its second-quarter earnings this week, showing that profit fell 91 percent from $5.43 billion last year to just $475 million this year. The company's total revenue was actually up 21 percent compared to last year, but that was mostly from the acquisition of certain assets from Fox that included FX, The Hill added.
The nonessential entertainment company has been hit especially hard by the worldwide restrictions put in place to slow the spread of the coronavirus. Disney closed all of its parks amid the pandemic, with only Disney Shanghai reopening after it had shut down in January amid the initial outbreak in China.
"The company reported that Disney Parks, Experiences and Products, which encompasses theme parks, cruise vacations and retail stores, made $637 million in operating income, a drop of around 58 percent," The Hill noted. "Only its television division saw its income rise, up 7 percent to $2.38 billion."
As CBS News noted, the company suffered a total loss of $1.4 billion across its theme parks, retail stores, television operations, and other business units.
Despite the massive drop in profit, Disney executive board chair Bob Iger -- who left his role as CEO on February 25 -- said the company still plays an important role during the worldwide crisis and will have meaningful contributions to make.
"What we create has never been more necessary or more important," Iger said during a conference call with investors. "People find comfort and inspiration in our messages of hope and optimism."
Disney's sharp drop in profit will likely be reflected across the entertainment landscape, as attractions have closed and movie theaters closed down, with studios going dark as states have ordered nonessential businesses to close. Some have found creative ways to get around the crisis, with some studios releasing movies directly to streaming services and television shows filming remote episodes, but the entertainment industry as a whole has been hit hard.There could be more hope on the horizon for Disney. As The Inquisitr reported, a financial analyst predicts that Walt Disney World could reopen in June thanks to the phased-in reopening taking place in Florida. The state has already started to lift some of the restrictions put in place at the onset of the coronavirus outbreak, with more businesses expected to reopen in the coming weeks.