Business

Disney takes $5 billion hit but pandemic impact not as bad as feared

Published

4 years ago

August 5, 2020

LOS ANGELES (Reuters) – Walt Disney Co (DIS.N) 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 theatres 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% 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.”

Investors overlooked total revenue that fell short of expectations by nearly $600 million and focused on divisions including parks and its media networks with revenue declines that were not as bad as expected.

The Disney+ streaming service, which had 60.5 million paying customers as of Monday, was a bright spot in the quarter, Chapek said. Disney had reported 54.5 million subscribers as of May 4.

“What we plan to do is invest even more in our content in order to keep that machine cranked and going,” he said.

Combined with Hulu and ESPN+, Disney has attracted more than 100 million streaming customers worldwide since launching its big streaming effort nine months ago. Netflix Inc (NFLX.O), which got a head start in the market when it began streaming 13 years ago, boasts 193 million.

The coronavirus outbreak forced Disney to delay the theatrical debut of movies including the live-action epic “Mulan” about a Chinese warrior.

In a surprise move, Disney said it will release “Mulan” on Disney+ on Sept. 4 for people to watch at home at a cost of $30, and in theaters in markets where Disney+ is not available.

Chapek said the shift was a one-time event and did not represent a shift in strategy.

The decision followed a deal in July between Comcast Corp’s (CMCSA.O) Universal Pictures and cinema chain AMC Entertainment Holdings Inc (AMC.N) to allow the studio to release films directly to consumers after just three weeks in theaters, down from the average three months.

Disney also said it would launch a new international streaming service under the Star brand.

“Investors are looking beyond the tough quarter to continued reopening of parks, while Disney+ is expected to see further growth,” said Investing.com analyst Haris Anwar.

Theme park closures from April to June led to an operating loss of $1.96 billion in the parks and consumer products business. Even as four of its six theme park resorts around the world have opened, social distancing rules have limited attendance.

Demand at profit center Walt Disney World was lower than expected because of the resurgence of coronavirus infections in Florida, Disney Chief Financial Officer Christine McCarthy said.

The media network segment, which includes ESPN and Disney channels, reported a 48% jump in operating income to $3.15 billion.

The direct-to-consumer and international unit, which houses the Disney+ streaming service, reported an operating loss of $706 million, below the $1.06 billion that analysts expected.

Operating income at the movie studio fell 16% to $668 million as many movie theaters remained closed.

Overall revenue fell 42% to $11.78 billion. Analysts on average had expected revenue of $12.37 billion, according to Refinitiv IBES data.

Net loss from continuing operations was $4.72 billion, or $2.61 per share, in the third quarter ended June 27, compared with a net profit of $1.43 billion, or 79 cents per share, a year earlier.

Reporting and photo: Reuters

Business

Maldives celebrates arrival of 2024’s 1 millionth tourist

Published

4 weeks ago

June 27, 2024

m@ldives

Maldives on Thursday welcomed the one millionth tourist to visit this year.

The one millionth tourist is a Thai named Sutapa Amonwivat, who arrived from Singapore with her husband and two children. This is her second visit to Maldives.

Maldives Marketing and Public Relations Corporation (MMPRC) and the Ministry of Tourism gave a warm welcome to Sutapa at the Velana International Airport (VIA) Thursday afternoon. She was welcomed at the VIA by tourism minister Ibrahim Faisal, MMPRC Managing Director Ibrahim Shiury and senior officials of various relevant agencies.

After welcoming her with traditional offerings, she was presented with various gifts by the ministry, MMPRC, customs, immigration, Maldives Association of Travel Agents and Tour Operators (MATATO) and Trans Maldivian Airways (TMA).

Maldives reached one million tourists in June, three weeks earlier than last year. The number of tourists reached one million on July 16, 2023.

Maldives expects to reach 2 million tourists this year.

Business

New air route connects Chongqing to Maldives

Published

1 month ago

June 25, 2024

m@ldives

Chongqing Airlines on Monday began its inaugural flights to Maldives.

The Chongqing-Male route, scheduled three times a week, is expected to strengthen the bonds between China and the Maldives, opening up exciting new opportunities for tourism and cultural exchange.

The inaugural flight was welcomed upon its arrival at Velana International Airport (VIA) in Maldives, where local officials and tourism representatives expressed their enthusiasm for this new development.

“We warmly welcome our friends from China to our beautiful islands. This new connection strengthens our bonds and opens up new opportunities for tourism,” the tourism ministry said on X.

Maldives currently welcomes four airlines from China, including China Eastern, Beijing Capital Airlines, Xiamen Airlines.

In January, Maldives government urged tourism stakeholders in both Maldives and China to ramp up efforts to restore China’s position as the primary source market for Maldives tourism, a status held before the onset of Covid-19.

China, being the largest source market for Maldives tourism before the pandemic, saw a resumption of tourist arrivals from January 2023 after a three-year hiatus due to the pandemic. In 2023, the Maldives welcomed 187,118 Chinese tourists, marking a significant recovery in numbers. This year, the Maldives has welcomed the most number of tourists from China, with over 107,940 or 11.5 percent of total arrivals by June 12.

Business

CROSSROADS Maldives Introduces Weixin Pay at resorts for seamless guest experience

Published

1 month ago

June 21, 2024

m@ldives

CROSSROADS Maldives has introduced WeChat Pay, widely known as Weixin Pay in China, across its world-class resorts, SAii Lagoon Maldives, Curio Collection by Hilton, and Hard Rock Hotel Maldives. This payment option is made available to enhance the convenience and overall experience for guests from China, making their stay in the Maldives more enjoyable and hassle-free.

Understanding the needs of the diverse guests, CROSSROADS Maldives has integrated WeChat Pay into operations, allowing guests from China to easily and securely conduct transactions using a payment method familiar to them. The introduction of WeChat Pay is a testament to CROSSROADS Maldives’ dedication to enhancing guest satisfaction by offering exceptional experiences at every turn. What is also expected through this initiative is that the guests could benefit from better foreign exchange rates, translating to better savings on their expenditures during their stay.

The option is available for guests in-house conveniently at both resorts as well as across the Marina at CROSSROADS Maldives where a wider variety of unparalleled dining and retail experiences are available for all guests. The day visitors from China will also therefore equally benefit from this new introduction at the Maldives’ premier multi-island integrated leisure destination.

SAii Lagoon Maldives, Curio Collection by Hilton, is a vibrant tropical escape that offers unique and locally inspired experiences. The resort features spacious rooms and villas, a variety of dining options, and an array of recreational activities designed to cater to the desires of modern travellers. Guests can escape to the island’s SAiisational natural beauty, enjoy water sports, and indulge in spa treatments, all while relishing the personalised service that defines Hilton’s Curio Collection.

Hard Rock Hotel Maldives brings the iconic Hard Rock spirit to the tranquil shores of the Maldives. This family-friendly resort offers a perfect blend of relaxation and entertainment, featuring music-inspired experiences, live performances, and the brand’s signature amenities. With luxurious accommodations, diverse dining options, and a plethora of activities for all ages, Hard Rock Hotel Maldives ensures an unforgettable holiday experience for every guest.