Today, the Walt Disney Company is sharing LOTS of information with its shareholders on their fourth-quarter earnings call!
The fourth quarter, and the fiscal year, for the company ended in late September, and we’re really beginning to see the results and consequences of COVID-19 on Disney’s financial status. Disney reported over $14 billion dollars of revenue loss, and $2.4 billion of that was losses in the Parks, Experiences, and Products division. CEO Bob Chapek also shared how well Disney theme parks around the world fared. We’re taking a look at that now.
Early on in the call, Chapek stated, “It’s been a year unlike any other in our lifetimes and certainly any in the history of the Walt Disney Company.” Like the rest of the world, Disney definitely didn’t expect the challenges that this year would bring. Thankfully, the company seems to be slowly recovering from its financial losses — many thanks to the millions of Disney+ subscribers!
When discussing the success of the Disney Parks, Chapek shared that Walt Disney World Resort, Shanghai Disney Resort, and Hong Kong Disneyland Resort all achieved net positive contribution in the fourth quarter.
Disneyland Resort in Anaheim, CA remained closed during Q4 (with the exception of Downtown Disney). That means that Disney’s two remaining properties, Disneyland Paris and Tokyo Disney Resort, did NOT achieve net positive contribution — even with the parks themselves open at the time.
It is important to note that Disneyland Paris recently closed down a second time, due to a nationwide lockdown in France. The resort closed on October 29th, but is optimistically taking reservations for the holiday season.
Chapek also shared that capacity has increased at Walt Disney World. When the parks opened, they were originally at 25% capacity. Now, they are operating at 35%. If the demand for Disney World is high, then increasing the capacity should be a financial positive for the company.
Chapek also shared that they’re encouraged by booking trends, as Thanksgiving week is almost at 100% of Walt Disney World’s 35% capacity. We’ll make sure to keep you updated as we unravel the information we received from Q4. Stay tuned to DFB for all your Disney Parks news!
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What are your thoughts on the Q4 updates? Let us know in the comments below.