Disney Reports Massive Coronavirus-Related Losses

During a second-quarter earnings call from the Walt Disney Company, chief financial officer Christine McCarthy revealed the coronavirus outbreak resulted in losses of around $1.4 billion.

According to CNBC.com, McCarthy said Tuesday Disney’s Parks, Experiences and Products division lost around $1 billion as operating income decreased by an astounding 58 percent to $639 million.

The revenue for Disney’s parks division also decreased by 10 percent to $5.5 billion in the second quarter. McCarthy also announced companywide net income fell 91 percent to $475 million, while revenue increased 21 percent to $18.01 billion.

As for when officials believe the theme parks will reopen after temporarily shuttering in March, CEO Bob Chapek announced Shanghai Disneyland would welcome guests on May 11, but there was uncertainty when operations for other parks and the Disney Cruise Line would resume.

“We will take a phased approach with limits on attendance, using an advanced reservation and entry system, controlled guest density using social distancing, and strict government-required health and prevention procedures,” Chapek said. “These include the use of masks, temperature screenings and other contact tracing, and early detection systems.”

With Shanghai Disneyland acting as the company’s test run for reopening, Chapek said the number of guests permitted on the property per day would be around 24,000, an estimated 70 percent drop from the 80,000 visitors previously allowed inside per day.

Last month, Disney started evaluating how and when it could safely reopen Disney World in Orlando and Disneyland in Anaheim. Orange County Mayor Jerry Demings said a soft opening date in June would be “more realistic” than attempting to reopen the Florida park in May.

As for Disneyland, California Governor Gavin Newsom and Department of Public Health director Dr. Sonia Angell painted a much bleaker picture, with theme parks in the state possibly not opening “for months” until a coronavirus treatment becomes available.

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