Disney theme parks are expected to reopen in June following an extended coronavirus shutdown that could have a lingering impact on attendance through 2021, according to a new analysts report.
An analysts report from J.P.Morgan estimates that the shuttering of all 12 Disney resorts around the globe amid the COVID-19 pandemic could cost the Disney Parks, Experiences and Products division $5 billion in lost revenue in fiscal year 2020.
“Near-term, COVID-19 concerns impact several segments of the business with the Parks most exposed given the potential for a large profit hit if domestic parks see a meaningful drop in attendance or if the parks close for a prolonged period given the high fixed costs structure of the business,” according to the J.P.Morgan analyst report.
Disney’s two Anaheim theme parks, three hotels and outdoor shopping mall remain closed until further notice due to the COVID-19 pandemic. The shuttering of Disneyland and Disney California Adventure was preceded by closures of Disney parks in Shanghai, Hong Kong and Japan and followed by closures of Disney resorts in Florida and France.
The J.P.Morgan analysts pushed their previous expected reopening date for Disney theme parks from May 1 to June 1 in the latest report and projected that Shanghai Disneyland could reopen by May 1.
The Shanghai Disney resort closed in late January amid the COVID-19 pandemic. The Shanghai Disneyland Hotel and Disneytown shopping mall reopened March 9 with limited capacity and reduced hours. The Shanghai Disneyland theme park remains closed.
J.P.Morgan lowered its attendance expectations for Disney theme parks through the end of the company’s 2020 fiscal year in late September and for 2021. The global health emergency is also expected to lower Disney resort hotel occupancy, according to the report.
The hit to Disney theme park attendance from COVID-19 is expected to be “very specific” to fiscal year 2020 with “only some lingering impact” into the next year, according to the report.
“We assume it will take a long time to normalize,” the J.P.Morgan analysts said of attendance.
The big bright spot: Disney+ surpassed 50 million subscriptions. The J.P.Morgan analysts see the new streaming service as a core driver of the company’s “extensive ecosystem of consumer touch points” that eventually will benefit Disney’s theme parks once normal operations resume.
Disney officials, who rarely discuss theme park revenues or attendance, declined to comment.
Also: Disney World furloughing 43,000 more workers due to virus.
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April 13, 2020 at 10:40PM
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Analyst: Coronavirus could have lingering impact on attendance at Disney theme parks - TwinCities.com-Pioneer Press
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