May 5, 2020
Disney suffers $1.4bn hit due to coronavirus
Walt Disney Co suffered a $1.4bn hit to profits in the first three months of the year, as it closed its parks, cancelled movie releases and reduced advertising sales. Disney chairman Bob Iger said the firm was facing "Unprecedented" challenges but he was confident of recovery. The parks and cruise division has been a reliable profit driver for Disney in recent years, as the firm's giant media business tries to adapt to online competition and declines in paid-TV subscriptions and movie theatre attendance. The parks business was hammered by the closings, accounting for $1bn of the $1.4bn hit to operating income, as the firm shut its parks in Shanghai and Hong Kong in January, in Tokyo in February and in the US and France in March. Disney last year launched a new streaming service, Disney+, which had attracted 54.5 million subscribers as of 4 May - up from about 50 million on 8 April.
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