It cost nearly $5 billion for Disney to close Disneyland, Walt Disney World, Disneyland Paris, and its other theme parks from mid-March to June, the Walt Disney Company revealed on Tuesday.
During an earnings webcast, the company said it posted a loss of nearly $5 billion for the third quarter, which included a $2 billion loss in its parks, products, and experiences segment, USA Today reports. This segment’s revenue dropped 85 percent to $1 billion compared to the same quarter in 2019.
While Shanghai Disneyland reopened in May, followed by Disney World and Disneyland Paris in July, Disneyland in Southern California remains closed. Hong Kong Disneyland reopened in June, but after a surge in coronavirus cases, shut its doors again last month.
Florida has the second-highest number of coronavirus cases in the United States, and executives said Disney World is seeing more cancelations and lower attendance than expected. “This is obviously a very uncertain time,” CEO Bob Chapek said. “We should be in good shape once consumer confidence returns.”
Source:: The Week – Business