The Orange County Register reports that Deutsche Bank analysts are doubtful for Disney’s financial future in 2021.
Deutsche Bank analysts express concern for Disney’s theme parks and consumer products division. At this point, they assume that Fiscal Year 2021 will be another ‘lost year’ for the Walt Disney Company.
The news isn’t surprising to Disney fans given many recent cancellations. We already know we won’t see Mickey’s Very Merry Christmas Party or the Epcot Candlelight Processional this year.
The financial report details the following:
Disney Parks, Experiences and Products division revenue is forecast to decline $9.8 billion in fiscal year 2020, according to the Deutsche Bank report. Disney theme park revenue isn’t expected to bounce back to pre-pandemic levels until 2023, according to the report.
“We assume substantial improvement in FY22, but with revenue still not fully back to the FY19 level,” according to the report. “We assume a return to full parks earnings power in FY23.”
The good news: Deutsche Bank forecasts that the Disney theme park division will rebound significantly by fiscal year 2025 with revenue $10 billion higher than pre-pandemic levels.
However, Deutsche Bank analysts upgraded Disney stock on the strength of the Disney+ streaming service. The County County Register notes the availability of Mulan on Disney+ is expected to boost app download. Moreover, upcoming launches in the Nordics, Belgium, Luxembourg, Portugal and Latin America are expected to rapidly expand Disney+’s subscriber base.
But ultimately, Disney’s theme park and resorts continue to be affected by the coronavirus pandemic.
This site contains affiliate links to products. We may receive a commission for purchases made through these links. Also As an Amazon Associate, I earn from qualifying purchases.
- Florida Governor says theme parks could return to normal - September 25, 2020
- Gov. DeSantis lifts all COVID restrictions on restaurants in Florida - September 25, 2020
- Father suing Universal Orlando Resort over death of his son - September 25, 2020