Disney Theme Parks Show $2 Billion Loss from COVID-19 Closures

The Walt Disney Company reported third quarter and nine months earnings for fiscal 2020 on August 4. The results of course are not so positive as several Disney parks remained closed through the quarter due to COVID-19.

As shared by OrlandoSentinel, the coronavirus shutdown of Disney World and its other theme parks lost Walt Disney Co. $2 billion, the entertainment giant said Tuesday, in its latest earnings report that shows the devastating blow the pandemic has dealt to what was once one of the company’s top moneymakers.

Even though Disney World theme parks are open again, executives warned that Florida’s surge in COVID-19 cases are making many vacationers too nervous to travel. In turn, an unexpectedly higher number of people are canceling their Disney reservations, Disney CEO Bob Chapek said on an earnings call.

“The upside” from reopening is less than the company expected, Disney chief financial officer Christine McCarthy said, although she added the parks are still profitable. She did not provide figures.

 

“Every day, we’re pretty close to the percentage of the park that we can fill and still maintain the social distancing,” Chapek said as Disney frees up canceled reservations and gives spots to annual passholders and locals, who make up the other 50% of visitors.

Income for the theme park division, which also includes experiences and products, fell 85% to $983 million, for a net loss of nearly $2 billion for the third quarter, which covers April through June.

For the overall company, revenue fell to about $11.8 billion compared with $20.3 billion from the same quarter a year ago. But Disney still managed to post a small profit, with adjusted earnings per share coming in at 8 cents vs. $1.35 year over year.

For a full report of the The Walt Disney Company Reports Third Quarter and Nine Months Earnings for Fiscal 2020, click here.

Source: OrlandoSentinel