Walt Disney Company Third Quarter Earnings show big losses

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Walt Disney Company Third Quarter Earnings show big losses

The Walt Disney Company has reported its third-quarter earnings and the report shows the magnitude the COVID-19 shutdown had on the business.

The Parks, Experiences and Products division, reported losses at $3.5 billion in revenue, a decrease of 85%. This resulted in an operating loss of $2 billion.

Christine McCarthy, Chief Financial Officer, said that Walt Disney World is generating a “positive net contribution” at current attendance levels, with demand expected to grow. Spending is very strong per capita according to McCarthy. Most likely resulting from a pent up demand for Disney.

50% of guests visiting Walt Disney World are traveling from a distance, with the remainder coming from within Florida. Local and annual passholders have replaced attendance from long-distance travelers. However, locals don’t have the same spending value as those who travel further and stay longer.

Walt Disney Company Media Networks was down 2%, Studio entertainment was down 55%, and Direct-to-Consumer and International (which includes Disney+ and its more than 60 million global subscribers) was up 2%.

“Despite the ongoing challenges of the pandemic, we’ve continued to build on the incredible success of Disney+ as we grow our global direct-to-consumer businesses,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “The global reach of our full portfolio of direct-to-consumer services now exceeds an astounding 100 million paid subscriptions — a significant milestone and a reaffirmation of our DTC strategy, which we view as key to the future growth of our company.”

You can see the full earnings report here.

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Sara is a travel agent with Destinations to Travel, a Disney Earmarked agency. She lives in Alaska with her husband and 3 kids. Due to her extreme dislike of winter, she travels often to warmer destinations during the colder months. She visits the Disney parks and resorts frequently with her family and loves helping other families plan magical vacations. Contact her here for help with your vacation!
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