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Monday, 11 November 2019 14:25

Disney believes DTC, international segment to generate USD 800 million losses in first Q of FY20

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As per an estimate by the Walt Disney, Direct to Consumer (DTC) and international segment may generate about $800 million in operating losses in the first quarter of the fiscal year 2020. 

Also, it expects investment in Disney Plus and Hulu to impact operating income of DTC businesses to the tune of approximately $850 million.

Disney senior EVP and CFO Christine Mary McCarthy said: “It is expected that Direct to Consumer & International segment to generate about $800 million in operating losses for the quarter. We expect the continued investment in our DTC services, specifically Disney Plus, which will launch in just a few days and the consolidation of Hulu to drive an adverse impact on the year-over-year change in segment operating income of our direct-to-consumer businesses of approximately $850 million.”

Disney hopes the results to be partially offset by an operating loss of about $60 million at the 21CF film studio. 

She added: “We estimate that 21CF film studio generated about $30 million and operating income during Q1 of fiscal 2019.”

She said consolidated CapEx in fiscal 2020 will higher by $500 million than in the prior-year. The increase in CapEx is primarily due to increases in DTCI and Corporate.

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