CCTV Transcripts

CCTV Script 11/05/20

— This is the script of CNBC's news report for China's CCTV on May 11, 2020, Monday.

For the opening of Shanghai Disneyland, we can interpret it from several aspects. First of all, surely the opening of the park is a positive sign for Disney anyway. We know that last week Disney reported a net profit decline of more than 90 percent from a year earlier.

Affected by the epidemic, the company's operating profit decreased by $1.4 billion. For the opening of the park, the focus of the market was to see whether consumer enthusiasm could return.

And judging by the fact that tickets quickly sold out on the opening day, that was confirmed. So we are seeing a positive response from the capital markets. Disney shares have risen over the past five trading days.

However, it should be noted that the maximum number of visitors to the open campus is only 30%. So, there's still a big question mark over how long it will take to get back to pre-epidemic levels. Not to mention that other Disney parks around the world are still closed. As a result, some analysts expect the park's profitability to be challenged in the coming months and even quarters. If we look at the composition of Disney's operating profit over the last 10 years,

It can be seen intuitively that in the past few years, the profit contribution of Disneyland resort hotel and related product sales has increased significantly and still accounts for a large proportion.

In addition, Disney's media business has been hit hard, ESPN's revenues have fallen because of the cancellation of major sporting events. Disney also delayed the release of its big-budget movie MULAN because of the outbreak. We certainly can't ignore the good performance of its streaming service Disney + during the epidemic, but this part of is still in the red.

For the subsequent performance of Disney, the capital market is now basically divided into two opposing camps. On the bright side, Disney's business empire has survived many successful trials in its nearly 100-year history, including world war I.

Disney has also performed relatively well during the outbreak compared with its major business competitors.

Analysts still expect revenue to rise 2% in this fiscal year ending in September.

Bob Chapek


we are seeing encouraging signs of a gradual return to some extent of normalcy in China

Phil Blancato,


You just don't see a scenario where 2 or 3 years, that is not gonna happen. They have too many revenue drivers, for that reason you got a good company like this, get a chance to get lower.

The pessimists, however, argue that this outbreak, unlike any Disney has faced in the past, will continue to put pressure on its core business.

Jessica Ehrlich


We are going into this third fiscal quarter, revenue essentially, there is barely revenue for the quarter, we are projecting down 40%, and the losses should be a peak, I mean the June quarter, third quarter will be the worst

Recently, analysts at four major financial institutions downgraded Disney. Now, a big part of Disney's mission is to find ways to cut cost.

Disney's executive chairman has decided not to take a salary, in addition to suspending salaries for 100,000 employees, the new CEO took a 50 per cent pay cut, and other senior executives also took pay cuts of varying degrees. Notably, Bob Iger, who announced in February that he was stepping down as CEO, is reportedly back at the helm. Last year, he was being voted Time magazine's Man of the Year. Also, under his leadership, Disney completed its acquisition of 21st century fox last year, adding even more complexity to Disney's business.

This year, will he be able to turn things around for Disney? we will keep close eyes on this issue.