Disney’s revenues are not looking good. The firm released its results for the start of the year and estimated losses from the current crisis at $ 1.4 billion. It is the closure of its parks around the world that has the most serious impact on its economy.
Disney looks gray. The big-eared firm has been hit hard by the epidemic and has lost $ 1.4 billion since the start of the crisis. The closure of theme parks around the world will have severely impacted the firm, which estimates the negative impact of the health crisis at $ 1 billion. While revenues fell 10% to $ 5.5 billion, the firm saw its expenses increase in particular for the remuneration of its employees, but also following the development of its new world Star Wars: GalaxyIt’s Edge in California. It seems however that in the field, Disney finally sees the end of the tunnel. The firm will test its reopening strategy in Shanghai on May 11. If the number of visitors will be much lower than normal, Disney is preparing to return to activity. Social distancing measures and regular controls of the temperature of visitors will allow the firm to revive its activity. For the rest of its parks, Disney does not give a reopening date.
Despite its impressive 2019 box office figures, Disney has been in turmoil since the cinemas closed. If studio revenues increased 18% to $ 2.5 billion, operating profits are at half mast. It must be said that several feature films expected from the general public will not have had the expected success and have been largely impacted by COVID-19. One thinks in particular of En Avant, who had to stop his indoor career after only a few days of operation. However, the studios are doing well, thanks to SVOD platforms. The international launch of Disney + has been a resounding success since the firm has just reached 54 million paying subscribers worldwide. Bob Chapek, head of operations since February, remains optimistic and explains: “Disney has repeatedly demonstrated that it is exceptionally resilient, reinforced by the quality of our storytelling and the strong affinity with the consumers of our brands, as evidenced by the extraordinary launch of Disney + last November.” The next few months will therefore be decisive for the firm, which has yet to admit defeat.
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