Disney lost nearly $5 billion while theme parks were closed due to coronavirus

Disney lost nearly $5 billion while theme parks were closed due to coronavirus
Share

The Walt Disney Company lost nearly $5 billion April, May and June, while its theme parks were shut down due to the coronavirus pandemic, according to a presentation Disney executives made Tuesday.

It cost the company $3.5 billion just to close the parks during the third quarter, on top of the $1 billion it cost to shut them down the second half of March.

In all, the company posted a loss of nearly $5 billion for the third quarter, including a $2 billion loss in its parks, experiences and products segment.

Disney’s domestic parks – Disney World and Disneyland, as well as Disneyland Paris,  resorts and cruise operations were closed for the entirety of the quarter and the final two weeks of the previous quarter.

The company’s parks, experiences and products segment revenue declined 85% to $1 billion compared with the same quarter in 2019. Operating income fell $3.7 billion to a loss of $2 billion.

Disney’s media networks segment helped offset the losses from parks, experiences and products. Across all segments, the coronavirus pandemic’s impact cost the company $2.9 billion in April, May and June.

“This is obviously a very uncertain time,” CEO Bob Chapek said during an earnings webcast Tuesday. “We should be in good shape once consumer confidence returns.”

Disney has felt the full impact of the coronavirus pandemic, from its theme parks, resort hotels and retail stores, to its cruise lines and TV and film production.

Source: USA Today

Submit a Comment