Although Shanghai Disneyland has officially re-opened, the rest of the Disney Parks and Disney Cruise Line are still closed around the world.
Recently, the Walt Disney Company discussed the state of its finances as well as confirming that it will be selling debt for increased financial assistance.
According to CNBC, the Walt Disney Company could continue to lose $1 billion in earnings each month before taxes and interest.
While the company previously revealed that it lost $1 billion in parks, experiences, and consumer products revenue during its second quarter, analysts believe that this will be telling for its upcoming quarters as well.
However, Todd Juenger, who is an analyst at Berstein, stated that they don’t have much to base their predictions off of since Disney didn’t provide many details on “the burn rate of Parks while they are closed, or the economics of opening at reduced capacity.”
While many Disney employees have been furloughed along with executives taking salary cuts, the parks could return operating at lowered capacity. Since the situation is unprecedented, Juenger asserted that there’s no telling what the impact of phased openings will be like on the company.
Although there is the possibility of $1 billion in losses each month, Disney had $14.3 billion in cash on hand at the end of March. This week, they were also able to raise $11 billion by offering senior notes with maturities from 2026 to 2060.
While we may not yet know when the parks will re-open and how they will affect the Walt Disney Company, we will continue to keep you updated with more information!
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What Disney Parks have you visited around the world? Let us know in the comments below!