[Update] $1.4 billion shortfall for Disney

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Published on 12/05/20 - Updated on 17/03/22

Disneyland

The Coronavirus pandemic led to the closure of its parks and stores. If business resumes, the operating conditions subject to the rules of physical distance will be likely to have a significant impact on the profitability of the parks' operations. Published on May 7th, updated on May 12th

Disneyland Shanghai will reopen on May 11, but under what conditions? How can the operation of a park that welcomes several million visitors each year be profitable if it has to operate with a lower visitor gauge? How to sell such a specific leisure activity aimed at high CSPs only to domestic markets? 

Tickets for the reopening of the Shanghai Park were sold out within a few minutes after the sell opening. Only one third of the normal visitors capacity are allowed to visit the park and health measures are reenforced.

All Disney theme park location remain closed in France, USA and Hong Kong for now. Disney stores will reopen by May 20th for Olrlando resort.

Although the video-on-demand platform has made a good start, its implementation has generated costs that weigh heavily on the company's balance sheet.

As a result, the group decided not to pay out the half-yearly dividends, thereby safeguarding $1.6 billion in cash. 

Walt Disney Parks & Resorts

Walt Disney Parks & Resorts

Hotel Group

  • Walt Disney Parks & Resorts United-States
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