Disney profits plunge due to theme park closures and cruise cancellations
Disney lost $1.4 billion in its second-quarter due to the Covid-19 pandemic, $1 billion of which was due to the closure of its theme parks in California, Florida, Paris, Shanghai and Tokyo as well as cruise cancellations.
Overall revenue rose to $18 billion, up 21% from a year ago but this was in part due to its purchase of 21st Century Fox’s entertainment assets.
Its earnings fell 91% year-on-year to $475 million.
"The impact of Covid-19 and measures to prevent its spread are affecting our segments in a number of ways, most significantly at Parks, Experiences and Products where we have closed our theme parks and retail stores, suspended cruise ship sailings and guided tours and experienced supply chain disruptions," Disney said in a statement.
Disney World and Disneyland were closed by March 15 as coronavirus cases increased across the US. Days later, Disney suspended all cruises.
Disney hasn’t announced when it plans to reopen its US theme parks, the closure of which is costing it around $500 million every two weeks, according to chief financial officer Christine McCarthy.
The company plans to reopen Shanghai Disneyland on May 11, CEO Bob Chapek said on the conference call with analysts.
Guests and employees will be required to wear masks.
Chapek said the theme park, which closed in January, typically sees 80,000 visitors per day, but the reopening will set a limit of 24,000 a day for the first few weeks.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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