By CBSLA Staff

BURBANK (CBSLA) — The Walt Disney Co. reported sharp year-over-year third-quarter revenue drops Tuesday, due in part to pandemic-related closures of its theme parks.

An employee cleans the grounds behind the closed gates of Disneyland Park on the first day of the closure of Disneyland and Disney California Adventure theme parks in Anaheim as fear of the spread of coronavirus continue March 14. (Photo by David McNew/AFP-Getty)

The company reported a third-quarter revenue of $11.8 billion — a 42% drop from last year’s third quarter, but still ahead of industry projections in light of the ongoing coronavirus pandemic.

As expected, revenue losses were largely driven by hits to the company’s Parks, Experiences and Products segment, which saw an 85% decrease in revenue due to mandated closures. However, the company reported its Direct-to-Consumer & International segment saw a 2% gain — driven largely by the successes of its streaming platforms, including the newly launched Disney+.

“Despite the ongoing challenges of the pandemic, we’ve continued to build on the incredible success of Disney+ as we grow our direct-to-consumer businesses,” Bob Chapek, Disney CEO, said in a statement. “The global reach of our full portfolio of direct-to-consumer services now exceeds an astounding 100 million paid subscriptions — a significant milestone and a reaffirmation of our DTC strategy, which we view as key to the future growth of our company.”

According to the company, Disney+ accounts for more than half of its reported 100 million streaming subscribers. The company also owns ESPN+ and Hulu.

The company had originally planned to reopen its Disneyland and California Adventure theme parks in Anaheim on July 17, but a surge in coronavirus cases in the state forced theme parks to delay reopening dates.

The Downtown Disney shopping and entertainment district reopened to the public on July 9, though some individual businesses remain closed.

(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. City News Service contributed to this report.)

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