Disney has posted its first loss in almost two decades after the coronavirus crisis created a perfect storm for the entertainment giant, in which most of its key businesses ground to a near-halt.
The company said it made a loss of $4.7bn (£3.6bn) in the three months to the end of June as sales slumped by 40pc to $11.8bn.
The company’s theme parks, cruise lines, movie business and sports broadcasting division have all been hit hard by the pandemic, overshadowing the wildly successful launch of Disney Plus, its streaming rival to Netflix.
While subscribers to Disney Plus hit 57.5m, well above expectations when the service launched last year, revenues at its tourism business, which includes its theme parks and cruises, fell by 85pc.
The division is traditionally Disney’s largest but has been hammered by the pandemic. Disney’s theme parks were largely closed in the quarter, and although its Shanghai and Hong Kong attractions reopened, attendance has been limited.
Other parks that have reopened since, including its Disney World resort in Florida, have done so with safety measures such as face masks and entertainers forced to keep their distance from children.
Meanwhile, the company’s cruise ships have been docked, and blockbuster films such as Mulan, Avatar and Star Wars have been delayed for at least a year, squeezing revenues at its studio arm. Disney said on Tuesday night that Mulan would be released directly on Disney Plus, signalling another shift away from the movie industry’s reliance on cinemas.