Entertainment giant Disney has suffered a huge loss for the second quarter due to Covid-19. In three months to June, Disney lost $4.7 billion (£3.6 billion) due to the closing of theme parks and delay in film production and releases.
The pandemic was responsible for a $3 billion loss for the operating income
Disney mentioned that the $3 billion loss for the operating income was mainly because of the pandemic. There is a decline from $1.8 billion profit of the company reported the same time last year. The Chief Financial Officer, Christine McCarthy said that this loss was mainly due to the closure of the theme parks, where revenues plunged 85 percent compared to 2019 and compared to last year’s overall revenue also fell 42 percent to $11.8 billion.
Disney also mentioned that its domestic parks and resorts, Disneyland Paris, and cruise line business along with parks in Asia were closed for three months to June. However, the Disney Resort in Shanghai reopened in May, and the Disneyland Resort in Hong Kong reopened in late June.
A statement was made by the company to markets which stated: “The impact of Covid-19 and measures to prevent its spread is affecting our segments in several ways, most significantly at parks, experiences and products where we closed our theme parks and retail stores, some of which have now re-opened, suspended cruise ship sailings and guided tours and have seen an adverse impact on our merchandise licensing business.” The statement also added: “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.”