Disney posts $2.8 billion loss for the year

Posted | Contributed by Jeff

With the movie and theme park industries still reeling from the disastrous impact of the coronavirus pandemic, the Walt Disney Company on Thursday posted a rare annual loss of $2.8 billion during the 2019-20 fiscal year. For the quarter ending Oct. 3, the company’s parks, experiences and products division suffered another brutal hit, losing $1.1 billion.

Read more from The Tampa Bay Times.

Jeff's avatar

This is why I don't get the hate toward Disney for letting people go. The theme parks lost a billion dollars in three months. You can't do that indefinitely.


Jeff - Editor - CoasterBuzz.com - My Blog - Phrazy

It isn't sustainable particularly not on an extended basis. And at this point, we don't know how long it could need to be sustained. Year over year though cash on balance sheet increased $12.5 billion over the last year.

And sadly, it will only be a matter of time before Disney+ is the new Disneyland.

Do wut?


ShadowThaHedgee said:

And sadly, it will only be a matter of time before Disney+ is the new Disneyland.

I know better than to do this, but I can't resist: What does this even mean?


I interpreted it as the new on demand streaming service for TV that Disney debuted this year will eventually replace Disneyland Park.

But I'm a literal guy.

Disney+: now offered with a build-your-own-Matterhorn-in-the-backyard-kit option

Jeff's avatar

But it doesn't count unless you watch Mando twice and pay for parking.


Jeff - Editor - CoasterBuzz.com - My Blog - Phrazy

BrettV said:

I interpreted it as the new on demand streaming service for TV that Disney debuted this year

It debuted in November of last year.


99er's avatar

Jeff said:

This is why I don't get the hate toward Disney for letting people go.

I think the bulk of the hate comes from letting those people go after returning executive salaries back to 100% after patting themselves on the back for cutting those salaries when the initial furloughs started. At least that's what I gather from what I read online.


-Chris

It debuted in November of last year.

Disney's fiscal year ended October 3, 2020. So November 2019 was in most recently ended fiscal year.

Jeff said:

But it doesn't count unless you watch Mando twice and pay for parking.

Well there's no parking fee for Disney+, unless you want to upgrade. LOL

For purposes of comparison, that's almost twice what Six Flags earned in 2019. That's a lot of money.


Jeff's avatar

99er said:

I think the bulk of the hate comes from letting those people go after returning executive salaries back to 100% after patting themselves on the back for cutting those salaries when the initial furloughs started. At least that's what I gather from what I read online.

Those people are ridiculous. Those salaries don't offset a billion dollar loss or make up for hundreds of entertainers. The responsibility of an executive versus the zebra in Festival of The Lion King is not the same.


Jeff - Editor - CoasterBuzz.com - My Blog - Phrazy

99er's avatar

Obviously but...optics. That's all those people hating on Disney are seeing.


-Chris

I've got social media acquaintances (the stay locked in your basement until the virus is eradicated crew) that still believe the parks should all remain shuttered indefinitely AND everyone should be paid in full without a single job loss until they reopen "because Disney can afford it". These are otherwise relatively intelligent individuals, but it seems there's just a disconnect for the sake of knocking "the man".

jkpark's avatar

Do you think Disney will take advantage of the current situation, and try to acquire more adjacent property in Anaheim? Can't see how the neighboring hotels can survive the ongoing shutdown.

Right now I don't know how Disney would be able to afford it

Well, their balance sheet shows $17 billion in cash - that'll buy you a lot of distressed property. There's three times that much debt, of course, so it might not be a good idea (and they're losing a billion dollars a quarter, I hear). But it wouldn't surprise me if they were to make some strategic purchases.

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