The Walt Disney Company lost $3.5 billion in operating income during the fiscal 3rd quarter as a result of the park closures caused by the coronavirus pandemic. The news came from Disney CEO Bob Chapek on an earnings call focused on the 3rd quarter. This contributed to a nearly $5 billion loss for the company during the months of April, May, and June.
As the pandemic spread, Disney closed most of its theme parks by mid-March. While Walt Disney World recently reopened, the Disneyland Resort is still mostly closed with only the Downtown Disney District open again. Disneyland Paris has also recently reopened.
“The most significant impact in the current quarter from COVID-19 was an approximately $3.5 billion adverse impact on operating income at our Parks, Experiences and Products segment due to revenue lost as a result of the closures,” Disney’s quarterly report stated.
The parks in the United States and also in France were all closed for the entire third quarter. This is where a bulk of the losses came from. Shanghai Disneyland and Hong Kong Disneyland did reopen for part of the quarter. Shanghai Disneyland continues to recover. Hong Kong Disneyland however, has since closed again as Hong Kong faces a surge in COVID-19 cases.
According to Christine McCarthy, the Disney CFO, the coronavirus surge in Florida has impacted attendance at Walt Disney World Resort. She attributed this to the impact it had on airline travel. She did note, however, that Walt Disney World is seeing a “positive net contribution” to the company’s bottom line.
Chapek repeated that parks would not be in operation if they wouldn’t make money. He expressed confidence that park numbers would continue to get better as people get more confident with traveling.
In terms of Disneyland Resort parks reopening, there still is not a timeline for that. Guidelines have not been released by the state of California yet Chapek noted. Until that happens, there is no way to set a date for the parks and hotels to reopen at the Disneyland Resort.
What do you think about the loss for The Walt Disney Company due to COVID-19? Will the company be able to recover? How long do you think it will take? Share your thoughts in the comments below or with DAPS MAGIC on Facebook or Twitter!
