Between furloughs, unprecedented closures, and project cancellations, it’s safe to say that COVID-19 has hit the tourism industry harder than any other. Ahead of The Walt Disney Company’s third-quarter earnings report tomorrow, analysts are predicting a bleak call for the company and its investors.
In a new report from Reuters, it’s estimated that the Disney Parks, Experiences, and Products division will report a $2 billion loss for the latest quarter following a $1 billion loss in the previous quarter. The company’s third quarter runs from April through June. With a meager May reopening for Disney Springs, followed by the start of limited DVC resort reopenings in late June, it’s believed the company may report little to no revenue, given that the parks themselves didn’t begin official phased reopenings until July 11.
During the company’s last earnings call, Bob Chapek, Chief Executive Officer still seemed optimistic, stating, “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.” In the earnings call, Disney announced they would be forgoing the July payment of the semi-annual dividend, saving the company around $1.6 billion.
The Walt Disney Company will discuss fiscal third quarter 2020 financial results via a live audio webcast beginning at 4:30 p.m. EDT / 1:30 p.m. PDT on Tuesday, August 4, 2020. We’ll be reporting live with any updates revealed during the webcast, so stay tuned.