It’s been a long four months of furloughs, unprecedented closures, and project cancellations, thanks to the turbulent effects of COVID-19, and today, as scheduled at the end of every fiscal quarter, The Walt Disney Company presented its third-quarter earnings report to its investors and the public.
As expected, results were bleak, with a historic $2 billion reported in revenue loss from the company’s Parks, Experiences and Products division. The company’s third quarter runs from April through June. With a May reopening for Disney Springs, followed by the start of limited DVC resort reopenings in late June, the company reported very little revenue, given that the parks themselves didn’t begin official phased reopenings until July 11.
However, it seems not all is lost for Walt Disney World, as it seems the resort is operating at a meager profit, or at the very least exceeding variable costs. Roughly 50% of Walt Disney World’s guest base is still traveling in from a distance, with the other 50% coming from in-state.
While the resort has seen a higher level of cancellations, they’re still trying their best to fill the parks at the current capacity limits while still maintaining social distancing, with Annual Passholders filling in for the loss of out-of-state travelers.
Disney believes they should be in good shape once consumer confidence returns. While demand is not as high as expected, they do they expect demand to pick up once COVID-19 case numbers lower.
Disney stock was trading up 2.3% in after-markets after the earnings were released earlier today. You can review the full Q3 2020 Earnings Report by clicking here and read our full analysis and break-down here.