Disney World Reopening Falls Short as Parks Business Takes $3.5 Billion Hit
The reopening of Disney World, which kicked off last month amid a rush of excitement and a wave of criticism, has not boosted Disney’s bottom line. Disney reopened the Orlando, Florida theme park-resort on July 11 under the belief that doing so would help ease the fiscal hit caused by the shutdowns of movie theaters and other revenue streams as a result of the coronavirus pandemic. Unfortunately, as Disney Chief Financial Officer Christine McCarthy said during the company’s quarterly conference call with Wall Street analysts on Tuesday, earnings from reopening Disney World fell well short of expectations. “We’ve been able to achieve net contribution at current attendance levels,” McCarthy said during the call, which was live streamed. “But the upside we are seeing from reopening is less than we previously expected due to the continued rise of COVID cases in Florida.” Also Read: Disney Reports Loss of $4.7 Billion for Q3 as Pandemic Rocks Business The parks division lost out on $3.5 billion in operating income for the three months ending June 27, the company said. Overall, Disney’s parks business pulled in just $983 million during its third quarter, which was an 85% slide compared with the $6.6 billion in...
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