Disney suffers a $5 billion loss due to COVID-19; Read details

Walt Disney has lost over $5 billion in the first half of 2020 due to the COVID-19 pandemic, according to reports by USA Today. This is due to the fact that theme parks and theatres were shut amid the outbreak of the Coronavirus. Read on:

Walt Disney loses billions of dollars due to COVID-19

According to reports by USA Today, Walt Disney has lost over $5 billion in the month of April, May, and June due to the COVID-19 outbreak. Executives of Disney presented these stats on Tuesday. The company has said that it cost them around $3.5 billion to just close the theme parks during the third quarter. It also cost the company around $1 billion to shut the parks in the month of March.  

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Including all these losses, the company lost around $5 billion which included other expenses and product segments, USA Today reported. Disney’s Domestic parks including Disney World, Disneyland, Disneyland Paris, Disney Resorts, and Cruise operations were all closed during the pandemic in the earlier months of 2020. Disney’s park, experiences, and products produce a massive revenue, which fell by 85% than that of the same quarterback in 2019.

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Operating incomes of Disney have declined to $3.7 billion and has resulted in a $2 billion loss, according to reports. CEO Bob Chapek, during a webcast on Tuesday, said that they should be in good shape as soon as the customers are confident enough to return to the theme parks. He also added that it is a very 'uncertain time' for all the businesses out there.

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Walt Disney and its subsidiaries have felt an impact due to the ongoing pandemic, as not only the theme parks, resorts, and hotels are closed, but also several TV shows and movies have been kept on hold due to the COVID-19 outbreak. Theatres have been closed and several release dates have been postponed indefinitely. Fans of Disney films have been waiting for the release of its upcoming films. This will rope in profit for the firm as soon as the conditions get better.

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