Disney’s annual earnings report reveals that the Mouse House lost a whopping $6.9 billion on its parks as a result of closures during the pandemic.
Disney Parks has taken a massive $6.9 billion loss during the COVID-19 pandemic, despite some re-openings. The financial impact of the ongoing pandemic has been disastrous for many businesses, both small and large, and Disney’s status does not render it immune.
Back in March when the pandemic truly began to tighten its grasp on the livelihoods of many people around the world, it looked as though Disney would only have to close its parks for a short time. Few people would have guessed that some 8 months later, Disneyland would remain closed thanks to strict Covid measures imposed by the state of California. While recent changes have promised some limited shopping and dining options for California Adventure, the possibility of Disneyland completely opening its doors to the public before 2021 seems highly unlikely. It isn’t just Disney and its investors who are feeling the impact of the pandemic on their bottom line, either. In September of this year, 28,000 workers at Disneyland and Disney World were laid off, in what continues to be an especially challenging and stressful time for those who make their living off Disney based tourism.
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During a recent Disney investors call, it was revealed Disney Parks’ losses have been enormous. Though the Mouse House continues to succeed in some areas, its amusement parks have suffered a $6.9 billion loss since the start of the Covid-19 pandemic. These losses aren’t just the result of parks being closed, either. Even the reopened parks, which are operating at a limited capacity, have been less profitable than usual. This is understandable of course, as the pandemic continues to break records in the U.S. and around the world. News of Disney’s billion dollar losses came during the corporation’s annual earnings report.
For its part, Disney continues to blame the state of California for Disneyland’s severely limited ability to function. But as the annual earnings report seems to point out, whether open or closed, the pandemic has had a profound effect on a Disney’s profits. Aside from its theme parks, Disney also has lost money on its cruises, which have long been suspended. As news of these losses is revealed, Disney’s embittered battle with California state governor, Gavin Newsom continues to heat up. The amount of anger and frustration from Disney toward the governor’s proclamations certainly won’t be helped by this most recent look at Disney’s annual earnings.
It’s important, however, to remember that Disney Parks is a business like any other and the single most vital aspect of its existence is to profit. The state of California, on the other hand, has a vested interest in the health and well-being of its citizens. The restrictions placed on Disneyland may be suffocating for Disney’s business model, but at the present time, there’s nothing any of us can do about that. At the very least, Disney has no shortage of money to its name and will certainly survive despite the pandemic’s effects. The same can’t be said for many small-scale businesses throughout the U.S. and around the world.
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Source: Bob Chapek/Disney
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