Today the Walt Disney Company revealed its quarterly financial numbers and, probably not surprising, it’s not good news for Disney. With both movies and theme parks shut down for the entire quarter (March-June 2020) the financial loss has been extensive. For the Parks, Experiences, and Products division especially, it was an especially rough quarter. Revenue was down 85% and the total loss according to Disney, was approximately $2 billion, with a total company loss due to Covid estimated at $3.5 billion.
While the number is massive, it’s not exactly surprising. The entirety of Disney’s theme park empire as well as the cruise lines were closed for basically the entire quarter, the parks in China and Hong Kong were open for part of the quarter. What money the division did make probably came through online sales of consumer products, because there wasn’t any place else people could spend money with Disney if they wanted to.
Things will start to get slightly better from here. Most Disney Parks are now open and while they’re seeing a limited number of guests, we’re at a point where something is better than nothing. The one major exception is Disneyland Resort, which at this point is still closed, with no estimate as to when that might change.
The biggest question, however, is just how quickly things will improve. The fact is that right now the parks that are open can only allow a limited number of guests in safely, but even as the crowds are allowed to grow, it’s unclear how many people will actually be willing to go. If potential guests are apprehensive about visiting the parks, we could see the parks grow back to where they once were over the next several months or even years.
More to come…