NEWS: Disney Expects to Spend $1 Billion on Health and Safety Measures Next Year

Disney has released the Quarter 4 financial earnings summary today.

Many Disney investors are anticipating the release of the financial earnings and impact that COVID-19 has had on the company. Disney recently announced that they are shifting gears and focusing more on streaming content to balance losses. The amount of money spent on health and safety measures implemented in the Disney theme parks were a key concern for investors.

The Q4 Earnings results have stated that the effort to prevent the spread of illnesses has most significantly affected Parks, Experiences, and Products.

This grouping was impacted due to the limited capacity at the theme parks and suspensions of cruise ship sailings, guided tours, and Adventures by Disney vacations. Retail stores were also closed for a significant amount of time, impacting merchandise sales.

As far as Studio Entertainment, film productions were delayed, shortened, or canceled and stage play performances were suspended. Advertising sales also faced financial impacts at Media Networks and Direct-to-Consumer & International. The disruptions derived mostly from the production and availability of live sports events.

Frozen on Broadway announced its permanent closure ©Playbill

The earnings stated that “additional costs to address government regulations and implement safety measures for our employees, talent, and guests.” How long the costs will continue to build and how much will depend on operations and the continuation of the global health crisis.

New face mask sign at the entrance to Animal Kingdom

As a summation, Disney states that the overall financial impact of COVID-19 is approximately $1 billion in the 2021 fiscal year. Some of these costs can be gradually written off or capitalized. We’re giving a breakdown of all the Q4 Earnings so stay tuned!