Disney’s second Quarter Report Shows 58% Drop In Its Parks And Cruises Operating Incomes


The condition of every business is quite hard, except pharmaceutical and other companies; the majority of the remaining are suffering from considerable amounts of losses. Disney, in its recent second-quarter results, indicated that there had been a massive 58% drop in operating income from parks and cruises sectors. According to Q2 results, Disney managed to give Earning Per Share (EPS) of 60 cents to its shareholders and managed to generate $18.01 billion of revenues. Before the pandemic situation happened, the company was expecting to give an EPS of 80 cents. Still, since the case has entirely changed, it’s hard to say anything about the company’s performances.

In the recent call of CEO Bob Iger with the company’s other key managers, the board has decided not to pay dividends. This decision is reportedly going to save $1.6 billion of cash for the company, which they can further utilize to uplift the company’s financial performances. The pandemic situation severely impacted on Disney’s parks, and product segments. Parks and other segments lost approximately $1 billion of revenue because of a lockdown or 58% of its original estimation. The company said they are witnessing some good response in China since the lockdown has already lifted in there. The board is thinking of reponing Disney parks in China by the end of May 11.

Chinese Government has put a prohibition of opening parks at 30% capacity only. Disney’s amusement parks usually have 80000 visits a day, but because of this condition, they will have to let only 24000. The board said they would operate at less than 30% of its capacity, but as the time goes, they will proceed further. Disney already laid off 100000 employees since all parks are closed because of mandatory shutdowns. However, it will be interesting to see how the big company is going to keep its investors’ belief positively.

About the Author

Harold Dugan
Displaying great interest in the industry of technology, science and medicine, Harold has been contributing as a writer pertaining to the same domain for more than four years. He is good at writing in-depth articles presenting great insight and analytical view on a wide range of topics like medical devices, healthcare IT, smart and linked devices, medical tourism, and telemedicine. Harold has a great sense of news and her nose for these latest trends offers her an edge over those in the same field.