Disney and ESPN Will Announce Quarterly Earnings on Tuesday, Following Coronavirus Worldwide Shutdown.
Disney is set to release their quarterly financial report on Tuesday, August 4. Fans and financial experts wait with baited breath to see the damage. This will be the report from the first part of the shutdown.
Earlier this year, Disney began shutting down their international theme parks as fears of coronavirus began to spread. In March, Disney shut the gates to all domestic parks. Marking the first time in the history of the company such a thing happened for more than a day or two.
Over 100 days later, Walt Disney World reopened with a slew of new health and safety policies and guidelines. There was strict crowd control measures and limited capacities throughout the entire property and limited activities.
Disneyland remains shut down and several international parks have shut down for a second time as numbers surge in those areas.
In addition to parks being shuttered, films were pushed back. Every single aspect of the theme park and media giant has been negatively impacted by the virus in some way.
This doesn’t bode well for the company’s financials. Disney has already announced the postponement of several major projects that were announced at D23. The Mary Poppins themed attraction in the UK pavilion at Epcot. Spaceship Earth was scheduled to lose for an extensive renovation in May, that has been postponed. The massive overhaul of Epcot has been scaled back.
Other projects across the parks have been delayed from the closure or taken off the table entirely.
Related: Walt Disney World Project Rundown
This time last year Disney was flying high and reported a $1.7 billion profit at their stakeholder meeting. Tomorrow, they are expected to report a $2 billion loss. With studios shut down for several months, projects that were in production have suffered. Theatres were also shuttered. Analysts expect the studio portion of the compant to declare operating income of $356 million, a 55% decline from this time last year.
ESPN, also owned by Disney is expected to also report a decline. Experts forecast a $1.97 billion quarterly profit. Down from compared a reported $2.1 billion profit from the same period last year.
Although Disney is slowly but safely reopening resorts and theme parks, the company has taken a major hit. It will take years for the company to recoup losses suffered from this global pandemic.
We expect more projects to be shelved as Disney works to recover and recalibrate from this unique situation. The future of Disney Cruise Line remains unclear as the cruise industry continues to be awash in waves if uncertainty. Films and shows are getting back to production, parks to reopen and recovery is slowly starting to show but will it be enough for the company to regain their glory? Time will tell.
Stay tuned for more information as it becomes available.