Between holidays, unprecedented closings and project cancellations, it’s safe to say COVID-19 has hit the tourism industry harder than any other. Ahead of The Walt Disney Company’s third quarter earnings report tomorrow, analysts expect a grim call for the company and its investors.
In a new report from Reuters, it is estimated that the Disney Parks, Experiences, and Products division will report a loss of $ 2 billion for the most recent quarter after losing $ 1 billion in the previous quarter. The company’s third quarter runs from April to June. With a meager reopening in May for Disney Springs, followed by the start of the limited reopening of DVC stations at the end of June, it is believed the company could bring in little to no revenue, given that the parks themselves do not. ‘began the official reopening in stages before July 11.
During the company’s latest earnings call, Bob Chapek, CEO, still looked upbeat, saying: “While the COVID-19 pandemic has had a significant financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and come out of it in a position of strength.” In the earnings call, Disney said it would forgo the July semi-annual dividend payment, saving an estimated $ 1.6 billion.
The Walt Disney Company will discuss the third quarter of fiscal 2020 financial results via a live audio webcast starting at 4:30 p.m. EDT / 1:30 p.m. PDT on Tuesday, August 4, 2020. We will keep you informed of any updates live. revealed during the webcast, so stay tuned.