Business

Disney Park suffered another blow from Covid, less pandemic limits provide hope

The COVID 19 pandemic will bring people into Disneyland Park for the first time since the closure of Disneyland Park in Anaheim, California on April 30, 2021 last year.

David McNew | Getty Images

Disney suffered another financial blow in the second quarter from the pandemic as restrictions on open theme parks and continued closures of California parks had a significant impact on earnings.

But the future of Disney Park is bright. Disneyland Resort reopened on April 30th, and many pandemic regulations have begun to be relaxed or completely abolished. The Centers for Disease Control and Prevention said Thursday that fully vaccinated people no longer need to wear masks in most environments.

Disney’s Parks, Experiences and Products segment revenue fell 44% to $ 3.2 billion. This is because many of the theme parks are closed or have reduced capacity and cruise ships and guided tours have been interrupted.

According to the company, the outbreak caused the division to lose approximately $ 1.2 billion in operating profit in the last quarter. Disney has reported similar losses in each of its last four earnings reports.

As Disney reopened its two California-based parks on April 30, the revenue it earned in the past few weeks has not been reflected in its second-quarter results. However, the reopening of the park could raise expectations for the third quarter. As of Thursday, Disney’s Paris-based theme park is generally the only place that hasn’t been reopened.

“Our parks and resorts, which opened during the quarter, were operated with significantly reduced capacity, but all achieved the goal of a net positive contribution, which means revenue outweighs variable costs. I did.
It is related to the opening of the business. “

In addition, Disney is amending its health and safety guidelines as vaccination rates continue to rise and the number of cases of coronavirus reported in the United States is decreasing.

“We will be able to raise capacity limits, and in fact we have already started,” said CEO Bob Chapek. “Given today’s guidance from the CDC and previous guidance from the Governor of Florida, we are already beginning to build capacity.”

The CDC also provides guidance that vaccinated individuals do not need to wear masks indoors or outdoors, he said. These new guidelines may change Disney’s mask policy in the future.

“”[It’s] It’s big news for us, especially if someone is in Florida with a mask on in the middle of the summer, “Chapec joked.

Disney Park suffered another blow from Covid, less pandemic limits provide hope

Source link Disney Park suffered another blow from Covid, less pandemic limits provide hope

Back to top button