BREAKING: Disney Parks, Experiences and Products Segment Records Loss of $1.1 Billion in Q4 2020
The Walt Disney Company has released the Q4 earnings report for 2020, beating expectations with $14 billion in revenue, but still experiencing loss in the Disney Parks, Experiences and Products segment, as a number of parks, such as Disneyland Resort are still shuttered. You can read the full financial results here.
The Disney Parks sector experienced the most significant loss. Disney Parks, Experiences and Products revenues for the quarter decreased 61% to $2.6 billion, and segment operating results decreased $2.5 billion to a loss of $1.1 billion. Lower operating results for the quarter were due to decreases at both the domestic and international parks and experiences businesses.
As a result of COVID-19, Disneyland Resort and the Disney Cruise Line were closed for all of the current quarter. Shanghai Disney Resort re-opened in May, while Walt Disney World Resort and Disneyland Paris re-opened in mid-July and Hong Kong Disneyland Resort was open for about two weeks at the beginning of the quarter and about one week at the end of the quarter. All of the re-opened parks and resorts operated at significantly reduced capacities during the current quarter.
Disney estimates the total net adverse impact of COVID-19 on segment operating income in the quarter was approximately $2.4 billion.
In total, Disney estimates the net adverse impact of COVID-19 on the current quarter and full year segment operating income across all businesses was approximately $3.1 billion and $7.4 billion, respectively, inclusive of the impact at Parks, Experiences and Products.