How much profit did Disney lose due to global lockdowns?

Question

Accepted Answer

Disney's Profit Loss Amidst Global Lockdowns Estimated at US$1.4 Billion

The Walt Disney Company estimated that global lockdown measures implemented to combat the spread of the contagion resulted in a profit reduction of US$1.4 billion (RM6 billion). This significant financial impact was primarily attributed to the closure of its theme parks. Further analysis from Sanford C. Bernstein indicated that Disney was experiencing a monthly loss of approximately US$1 billion while its parks remained shut, when compared to anticipated earnings.
Impact on Theme Park Operations

The pandemic's effects began to significantly impact Disney's global operations in late January with the closure of Shanghai Disney Resort and Hong Kong Disneyland. Subsequently, Walt Disney World in Orlando, Florida, the company's largest theme park, was also closed in March. While Walt Disney World was scheduled to reopen on July 11, a surge in Covid-19 cases in Florida led to calls for a delay from petitioners.
California Park Reopening Delays

In California, the reopening of Disneyland Park and Disney California Adventure Park, initially slated for July 17, was postponed. This delay was contingent upon Disneyland receiving approval from state officials, following a rise in Covid-19 cases within the state. This situation highlights the ongoing challenges companies face in navigating public health crises and their financial repercussions.
Analyst Projections on Financial Strain

Analyst Todd Juenger of Sanford C. Bernstein projected in a June 11 report that Disney was losing around US$1 billion each month due to park closures, relative to its expected revenue. Media analyst Richard Greenfield of LightShed Partners noted the dual challenge: the longer the delay in reopening, the greater the financial losses for Disney. He also raised concerns about potential long-term impacts on consumer demand for travel as the health crisis persists, questioning the feasibility of reopening other parks if Disneyland itself expressed reservations.

Reading history

Hide →

This history is cleared when the page is closed.

How much profit did Disney lose due to global lockdowns?

Loading

Was this article helpful?

Helpful

Not helpful

Report an issue

1

0

0

Share with friends