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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