The Walt Disney Company has just posted the details of their third fiscal quarter for 2020. Of course, the biggest news item was the closure of their theme parks due to COVID-19. The fiscal quarter runs from March 29th to June 27th, a time period where no guests entered the domestic theme parks. Here are the details:
Parks, Experiences and Products revenues for the quarter decreased 85% to $1.0 billion, and segment operating results decreased $3.7 billion to a loss of $2.0 billion. Lower operating results for the quarter were due to decreases at both the domestic and international parks and experiences businesses and to a lesser extent, at our merchandise licensing and retail businesses.
As a result of COVID-19, our domestic parks and resorts, cruise line business and Disneyland Paris were closed for all of the current quarter. Our Asia parks and resorts were closed for a portion of the current quarter, as Shanghai Disney Resort re-opened in May and Hong Kong Disneyland Resort reopened in late June (Hong Kong Disneyland Resort closed again in July). The decrease at licensing and retail also reflected the impact of COVID-19, which resulted in decreases in licensing earned revenue and lower minimum guarantee shortfall recognition, the closure of our Disney Stores for most of the quarter and the write-down of store assets.
We estimate the total net adverse impact of COVID-19 on segment operating income in the quarter was approximately $3.5 billion.
As always, keep checking back with us here at BlogMickey.com as we continue to bring you the latest news, photos, and info from around the Disney Parks!