The Walt Disney Company is looking at a huge loss from its theme park business. They are forecast to lose two billion dollars for the latest quarter and already lost one billion from the previous quarter.
Disney is expected to announce the two billion dollar loss forecast for the third quarter compared to a 1.7 billion dollar profit for the same time the previous year according to Reuters. The forecast based on Refinitiv data comes a day before the Walt Disney Co. reports its quarterly earnings on Tuesday, Aug. 4th. Disney Parks division absorbed the one billion dollar loss from the second quarter during the start of the pandemic. Most of the parks have reopened around the world with the exception of a few. Disneyland California has still closed as well as Disneyland Hong Kong. Hong Kong opened for awhile then reclosed in mid-Jul due to a spike of COVID-19.
Disney is not the only theme park to lose out over the last few months. Universal Studios has reported a 94% percent loss. From 1.5 billion to 87 million dollars. Sea World has had a loss of 96 %. They are forecast to from 406 million to only 18 million dollars. Knotts Berry Farm parent company Cedar Fair will release its forecast on August 4th. With no real clear end in sight from the pandemic, the big question is. How long will it take for the theme park industry to recover?
Source: The OC Register