Disney Suffers $1 Billion Loss During COVID-19 Pandemic
Written by SOURCE on May 6, 2020
The coronavirus outbreak has reportedly cost Disney more than $1 billion in profits.
Company executives confirmed the loss Tuesday during its quarterly earnings call, nearly two months after the virus was declared a global pandemic. According to Reuters, Disney CEO Bob Chapek and Executive Chairman Bob Iger confirmed revenue was lost in various areas, such as retail stores and TV operations; but most of the damage was due to the shuttered theme parks around world.
“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,” Chapek said in a statement. “Disney has repeatedly shown that it is exceptionally resilient, bolstered by the quality of our storytelling and the strong affinity consumers have for our brands, which is evident in the extraordinary response to Disney+ since its launch last November.”
Chapek went on to say Shanghai Disneyland is set to reopen on May 11 with heightened safety measures. The Chinese government has requested the company to implement a capacity limit of 30 percent, which is about 24,000 people. Chapek said Disney will reopen the park “far below” within the first few weeks, as patrons and employees get used to the social distancing restrictions, temperature screenings, and other safeguards.
At this time, it’s unclear when other Disney theme parks will reopen.
“While it’s too early to predict when we’ll be able to begin resuming all of our operations, we are evaluating a number of different scenarios to ensure a cautious, sensible and deliberate approach to the eventual reopening of our parks,” Chapek said.
