Disney Loses More Than $1 Billion Due To COVID-19, Shanghai Disneyland Set To Reopen
Disney is reopening Shanghai Disneyland. The news comes after the company announced theme park closures have cost them a billion dollars.
The impact of the COVID-19 (coronavirus) pandemic is changing the way most live their everyday lives. Now, after the Walt Disney Company's quarterly earnings call, it's also becoming clear how it's affecting businesses. In a press release pertaining to the company's earnings, Disney revealed it expects to lose over $1 billion dollars due to the pandemic.
"Obviously, much has changed in the world since our last earnings call and the challenges we're facing are unprecedented," chairman and former CEO of Disney Bob Iger said to open the earnings call. Those unprecedented challenges include all of Disney's theme parks around the world remaining closed, while many of Disney's employees were furloughed until they can safely return to work.
The closures led to a 10% revenue loss for the Parks, Experiences, and Products division of Disney, which amounts to a $1 billion loss in operating income. Meanwhile, there remains no set date for most of the parks to reopen. However, CEO Bob Chapek noted that the company plans to reopen Shanghai Disneyland on May 11. The park will follow government required procedures, as well as implement limited capacity and density control.
Disney has also had to contend with postponing movie releases and, in the case of Artemis Fowl, opting to debut a movie on the Disney+ service and forgoing a theatrical window altogether. Still, the company believes it can ultimately weather the storm.
"While the COVID-19 pandemic has had an appreciable financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and emerge from it in a strong position," Chapek said in a statement. "Disney has repeatedly shown that it is exceptionally resilient, bolstered by the quality of our storytelling and the strong affinity
consumers have for our brands, which is evident in the extraordinary response to Disney+ since its launch last November."
For more information about the new release dates for Disney's upcoming slate of films, including several upcoming Marvel Cinematic Universe movies, check out our easy guide.