An employee clears the grounds behind the closed doors of Disneyland Park on the first day of the closure of the Disneyland and Disney California Adventure theme parks in Anaheim, California, on March 14, 2020.
DAVID MCNEW | AFP | Getty Images
Disney had another financial success during its first fiscal quarter, as restrictions on attendance at open theme parks and the continued closure of California parks weighed heavily on its bottom line.
There is currently no timeline for the reopening of Disneyland, as the state of California has said it will not allow the reopening of theme parks until coronavirus cases have dropped substantially in the surrounding community. Although the 7-day average of new daily Covid cases has dropped from the previous week in California, more than 1,000 new cases are diagnosed each day in the state, according to a CNBC analysis of Johns University data Hopkins.
“Where we have been able to reopen our theme parks with limited capacity, guests have constantly demonstrated the willingness and desire to visit which, we believe, is a testament to the fact that they feel confident in the safety and health protocols we have put in place. his place, ”CEO Bob Chapek said during a benefit call Thursday.
The company said the outbreak cost the division about $ 2.6 billion in operating revenue lost during the December quarter.
Revenue from Disney’s parks, experiences and products segment fell 53% to $ 3.58 million.
Disney has reported similar losses in each of its last three gains. In the fourth quarter, the company said the coronavirus outbreak cost it about $ 2.4 billion in operating revenue lost during its most recent period. In the second quarter, the company had reported that it lost $ 1 billion in operating revenue due to the pandemic, and in the third quarter, the pandemic reduced its operating revenue by $ 3.5 billion.
Walt Disney World in Florida and Shanghai Disney Resort were open throughout the first quarter, while Disneyland and all Disney cruise businesses were suspended.
Disneyland Paris was open until the end of October, about a third of the quarter, and Hong Kong Disneyland was open until early December, or about two-thirds of the quarter. The company expects its location in Hong Kong to reopen during the second quarter.
“As for the parks’ outlook for the rest of the year and capacity, it will really be determined by the public’s vaccination rate, ”Chapek said. “This seems to us to be the biggest lever we can maneuver to grab parks that currently have limited capacity and increase it or open parks that are currently closed.”
Chief Financial Officer Christine McCarthy said for the open parks, the company was able to make a profit from guests. Revenue earned by park visitors exceeded opening costs. He also noted that the company is satisfied with the number of bookings and bookings it is seeing.
As the parks expand capacity and reopen, Chapek said there will be some level of social distancing and putting on masks for the rest of the year.
“Dr. Fauci said today that he hopes there will be vaccines for everyone who wants them in April of this year,” Chapek said. “If that happens, that will change the game and that could speed up our expectations and give people the confidence they need to get back to the parks.”
“Will there be any overlap until we know we’ve gotten herd immunity?” He said. “Sure we will, but we also believe we will be in the same state of 6-foot social distance and masks in 2022? Absolutely not.”