Disneyland Resort and Walt Disney World Resort profits are expected to rebound this year, then grow higher in 2023 and 2024. This is after a significant financial downturn in the past two years due to COVID-19 closures and capacity limits.
A new analyst report from research firm MoffettNathanson indicates that theme parks will have strong years ahead. “While there are clear headwinds in some of Disney’s legacy businesses,” the report read, “there are also strong tailwinds for the parks in both the near and long term.”
“Despite the latest omicron uncertainties,” it continues, “it still seems as though fiscal year 2022 will bring a quick bounce back in parks profits.”
The Walt Disney World theme parks were only closed for four months of 2020, but Disneyland and Disney California Adventure were closed for over a year. All international parks also closed at some point. Hong Kong Disneyland recently closed again due to omicron.
The Walt Disney Company suffered in 2020, losing $2 billion in the third quarter. They broke even in the third quarter of 2021 and are expected to turn a $1.3 billion profit in the third quarter of 2022. Disneyland Resort and Walt Disney World are expected to reach 2019 levels of profitability this year, generate $4 billion in earnings. In 2023, they are expected to generate $5.2 billion. In 2024, that number could be $6.3 billion.
International parks may take longer to recover. A $170 million loss is forecast for this year and a $475 million profit in 2024.
Source: Orange County Register