Disney Submits Statement to SEC Regarding Business Risks During The COVID-19 Outbreak

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Earlier today, The Walt Disney Company filed a statement with the Securities and Exchange Commission (SEC) cautioning financial specialists of the normal cost the COVID-19 pandemic could have on the company.

Disney didn’t hold back, featuring areas of the business as of now are and are well on the way to enduring a financial hit during the COVID-19 outbreak. A week ago, Disney reported they would be shutting down their U.S. parks and resorts in California and Florida which joined the overseas parks and resorts in Shanghai, Hong Kong, Tokyo, and Paris. Following that news, the Company likewise chose to pull the release of six of their movies from four of their studios including Marvel Cinematic Universe film Black Widow and the live-action adaptation of Mulan. In any case, the parks and studios aren’t the main regions where Disney will endure a financial hit. Disney Cruise Line has also suspended all sailings until further notice. Disney’s three broadway shows Aladdin, Frozen, The Lion King are right now not playing.

The Walt Disney Company SEC Filing:

The impact of the novel coronavirus (“COVID-19”) and measures to prevent its spread are affecting our businesses in a number of ways. We have closed our theme parks; suspended our cruises and theatrical shows; delayed theatrical distribution of films both domestically and internationally; and experienced supply chain disruption and ad sales impacts. In addition there has been a disruption in creation and availability of content we rely on for our various distribution paths, including most significantly the cancellation of certain sports events and the shutting down of production of most film and television content.

We expect the ultimate significance of the impact of these disruptions, including the extent of their adverse impact on our financial and operational results, will be dictated by the length of time that such disruptions continue which will, in turn, depend on the currently unknowable duration of the COVID-19 pandemic and the impact of governmental regulations that might be imposed in response to the pandemic. Our businesses could also be impacted should the disruptions from COVID-19 lead to changes in consumer behavior. The COVID-19 impact on the capital markets could impact our cost of borrowing. There are certain limitations on our ability to mitigate the adverse financial impact of these items, including the fixed costs of our theme park business. COVID-19 also makes it more challenging for management to estimate future performance of our businesses, particularly over the near to medium term.

Read: Disney Pushes Marvel Studios’ ‘Black Widow’ Off Its May Release

You can check out the sec.gov as it highlights some of the areas that Disney says will be impacted by the outbreak as a whole.

As of this time, it is unknown when the parks will all reopen, when movies will hit their new release dates, when movies and series that are in both production and pre-production will re-enter those phases and when the cruise lines will set sail again. In the meantime, stay tuned to the TheDisInsider.com as we bring you the latest information regarding the impact of COVID-19 as pertains to The Walt Disney Company.

Source: SEC

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