During the fourth-quarter earnings call, executives of The Walt Disney Company reported on Walt Disney World Resort’s performance into the fourth quarter and while Disney Park, Experiences, and Products as a whole recorded major losses, the Walt Disney World Resort recorded a net positive contribution, exceeding their variable cost.
CFO of the Walt Disney Company, Christine McCarthy, reported the following:
“Financial results in the quarter were significantly impacted by restricted capacity and closures. Operating income at Parks, Experiences and Products declined significantly versus the prior-year to an operating loss of 1.1 billion dollars.
However, we are pleased to report that Walt Disney World, Shanghai Disney Resort, and Hong Kong Disneyland all achieved a net positive contribution in the quarter. Which means, we generated Revenue that exceeded the variable costs associated with reopening at Walt Disney World. We are also encouraged by the booking trends we are seeing. Theme park reservations at are reduced capacity limits are already 77% booked with Thanksgiving week booked close to capacity around underlined consumer demand for our Parks and Experiences.”
CEO Bob Chapek also spoke optimistically about the endurance of Walt Disney World and its ability to adapt to the trying times. Even going beyond tourism to host two entire major sports leagues as they finished their entire season.
“Our ability to operate responsibly in this pandemic environment extends beyond Parks in part. I’m proud to say that we were successfully able to host the NBA and MLS at Walt Disney World in Orlando. It’s been a huge undertaking and a great achievement just consider the NBA for example 94 days 2018 172 games players broadcast Partners referee media support staff and Disney employees all in the bubble…As you can see, even during this most uncertain times, here at the Walt Disney Company we are finding ways to not only operate our businesses effectively but also take the necessary [precautions] and boltser our future growth.”
Walt Disney World Resort has continued to rise to these challenges.