The Walt Disney Company has just released its Q1 earnings report for 2021, recapping October, November and December of 2020. The company is reporting strong income, mostly credited growth to DTC services.

“We believe the strategic actions we’re taking to transform our Company will fuel our growth and enhance shareholder value, as demonstrated by the incredible strides we’ve made in our DTC business, reaching more than 146 million total paid subscriptions across our streaming services at the end of the quarter,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “We’re confident that, with our robust pipeline of exceptional, high-quality content and the upcoming launch of our new Star- branded international general entertainment offering, we are well-positioned to achieve even greater success going forward.”

Disney Parks, Experiences and Products revenues for the quarter decreased 53% to $3.6 billion, and segment operating results decreased $2.6 billion to a loss of $119 million. Lower operating results for the quarter were due to decreases at both the domestic and international parks and experiences businesses.

Domestic parks revenue was down 70%, international parks were down 60%. Consumer products, which is now part of the division, is propping up the losses from the parks, which is why loses were only $119 million. Loses recorded by the theme parks on their own are over $1 billion.

As a result of COVID-19, Disneyland Resort was closed and Disney Cruise Line business was suspended in the current quarter. Disneyland Paris closed on October 30, 2020 and Hong Kong Disneyland Resort closed on December 2, 2020. Walt Disney World Resort and Shanghai Disney Resort were open in the current quarter. Parks and resorts that were open during the quarter operated at significantly reduced capacities.

Disney estimates the total net adverse impact of COVID-19 on segment operating income in the quarter was approximately $2.6 billion.