We’re learning a lot about Disney during the Quarterly Earnings Call!
Tree of Life
We’ve already gotten an update on the subscriber count for Disney+, and we’re looking forward to other exciting news from the company. And now, we’re taking a look at the theme parks’ finances for the quarter.
The Disney Parks, Experiences, and Products segment of the company has been reporting losses for multiple quarters now, primarily due to the parks’ long-lasting closures. In Quarter 1 of the 2021 Fiscal Year, this segment reported a $2.6 billion loss “due to revenue lost as a result of the closures and reduced operating capacities.” Now, for Quarter 2, it has reported a loss of $406 million.
©Disney
Its revenue for the quarter decreased 44%, to $3.2 billion. At the end of Quarter 2 last year (on March 28th, 2020), that revenue was $5.7 billion.
©Disney
According to Disney, its “most significant impact on operating income in the current quarter from COVID-19 was at the Disney Parks, Experiences and Products segment due to revenue lost as a result of the closures and reduced operating capacities.” However, these losses were “partially offset” by the consumer products side of the business.
©Disney
Disney estimates a continued loss of $1.2 billion. We’ll continue to keep a close eye on the Quarterly Earnings Call and keep you posted with any updates!
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All in all it could’ve been that bad for Disney being that new CEO Bob Chapek was able to buy a $12.5 million dollar mansion nearby his old $5.3 million dollar mansion the had just bought in 2019. I’m sure most of the executives all received their bonus’s to. $1.2 billion is a lot to lose, but multimillion dollar mansions and bonus’s really didn’t help with the loss.
Those numbers make no sense, are the dates correct? Someone is not comparing the same qtrs (March 2020 =1str 2020. April 2021 =2nd qtr 2021). The 1st qtr is Jan, Feb & Mar. April is the 1st month of 2nd qtr.
WDW closed March 15, 2020. So 2nd qtr 2021 should show a profit (excluding payroll) vs 2nd qtr 2020 since parks were closed with zero revenue.
I’m not much for financials, but yeah, not a lot of companies can afford to lose billions per year. Disney is so big that it’s perhaps inevitable they’d take the hardest hit, but thankfully their nest-egg is vast compared even to that number, so they can afford to eat a loss like that for a while longer.
Hopefully the Theme Parks can return to normal before too long, and get those back up. Way too many longtime Cast Members lost their jobs over it.
So I guess all the maskers who said “Disney won’t miss your money” were wrong then?