ORLANDO, Fla. — The Walt Disney Company on Thursday reported a 61% drop in revenue for its theme parks segment, which has been hit hardest by the ongoing coronavirus pandemic.
What You Need To Know
- Parks revenue down 61% to $2.6 billion in 4th quarter
- Disneyland Resort in California remains closed
- Disney World park reservations 77% booked for the holiday season
For the fourth quarter, Disney’s Parks, Experiences and Products segment generated $2.6 billion in revenue down from the $6.7 billion it made in the same period in 2019. In its earnings release, Disney said the estimated impact of COVID-19 on its parks segment’s operating income was $2.4 billion for the fourth quarter.
The dip in revenue was due to restricted capacity at its open theme parks, the continued closure of Disneyland Resort in California and the inability of Disney Cruise Line to resume sailings.
Disney has been able to resume operations at most of its parks worldwide, including Walt Disney World Resort in Florida. However, Disneyland Resort in California remains closed due to California’s strict restrictions. Disney’s Chief Financial Officer Christine McCarthy said in a call with analysts that the company anticipates that Disneyland will remain closed through at least the end of the year. In the same call, Disney CEO Bob Chapek said the company was “extremely disappointed” with California for preventing Disneyland from reopening despite Disney’s “proven track record.”
Despite the quarterly loss, Disney executives said they were encouraged recent reservation trends.
At Disney World, park reservations are 77 percent booked for the holiday season, with reservations for Thanksgiving week close to hitting the resort’s limited capacity. When Disney World reopened in mid-July, its parks were operating at 25 percent capacity, but during Thursday’s call Chapek revealed the parks are now at 35 percent.
The parks are still adhering to health and safety measures, including mandatory face masks, temperature checks and social distancing protocols.
Not mentioned during the call were the layoffs within the parks segment. In September, Disney announced it would lay off 28,000 U.S. workers in the Parks, Experiences and Products segment. About 18,000 of the layoffs have come from Florida.