Disney Revenue Drops Staggering 50% in One Year, Shutdowns Imminent

in Disney

A serene twilight sky backs the iconic fairy tale castle as the luminous walt disney pictures logo takes center stage.

Credit: Disney

The Walt Disney Company lost an astonishing 50% of its revenue throughout the United Kingdom, Europe, the Middle East, and Africa in a single year, suggesting that further budget cuts and shutdowns are imminent.

Fountains light up in front of Sleeping Beauty Castle at Disneyland Paris
Credit: Androland °o° on Unsplash

In the last several years, The Walt Disney Company has run facefirst into a financial wall. Across the board, the Mouse has faced dwindling box office numbers for Walt Disney Animation Studios, Marvel Studios, and Lucasfilm. Of all its production companies, only Pixar Animation Studios managed to pull off a sleeper hit with Elemental (2023), but even that was not enough to compensate for bombs like The Marvels (2023) and Wish (2023). Indiana Jones and the Dial of Destiny (2023), a tentpole release for Lucasfilm between Star Wars films, managed to lose the company an estimated $143 million alone.

Harrison Ford Indiana Jones Dial of Destiny
Credit: Lucasfilm

At the same time, Walt Disney Parks around the world experienced huge financial shortfalls during the COVID-19 pandemic and are just beginning to bounce back. Even though crowds are beginning to pack Disneyland and Walt Disney World once more, they are also getting hit with Guest backlash for vastly inflated costs that threaten to price out average American families.

Related: Disney+ Spent $156 Million on One Season of a Canceled Show, Report Reveals

It turns out that the company is facing financial disaster not only in the United States but worldwide. According to new financial filings in the United Kingdom, Walt Disney EMEA (Europe, Middle East, and Africa) Productions Limited saw its 2023 revenue drop to £86 million ($110 million), down a staggering amount from the previous year’s £215 million ($270 million).

An income statement from Walt Disney EMEA Productions Limited for the period from 2 October 2022 to 30 September 2023, showing figures like turnover, cost of sales, administrative expenses, and operating profit, compared to the previous period ending 1 October 2022.
Credit: Companies House

The report says the directors of Disney EMEA are “in the process of considering the company’s future,” which certainly sounds ominous. Disney CEO Bob Iger returned to the company in 2022 with the promise that he would save the company $5.5 billion by any means necessary (at least, any that don’t mean he takes a compensation package cut). In effect, that means that the executive has been slashing budgets and canceling any projects that don’t have a guaranteed financial payout.

That is very bad news for Disney EMEA. At a time when Bob Iger is perfectly willing to cut budgets for the Disney Channel and hand over Marvel Cinematic Universe content to competitors like Apple and Warner Bros. Discovery, an entire international arm of the company losing 50% of its revenue does not look good. It is very probable that Disney EMEA will see significant portions of its productions shut down and projects canceled outright in the next several months.

Bob Iger standing by a stone archway with a view of a fairytale castle in the distance.
Credit: Inside the Magic

Related: Marvel Boss Is Happy That the MCU Is Failing, Apparently “Much More Comfortable”

Regarding the EMEA shortfall, a Walt Disney Company representative told Variety:

“Disney remains committed to creating quality storytelling, and our award-winning original local productions on Disney+ across EMEA, such as U.K. comedy Extraordinary and Italian drama The Good Mothers, are a testament to that. We have a fantastic slate of productions coming too in the months ahead, including Becoming Karl Lagerfeld and Rivals.”

Notably, this is something of a non-statement regarding a huge financial issue for The Walt Disney Company. Bob Iger only recently managed to avoid being ousted from his position as CEO by activist investors who claimed that his leadership of the company is leading to financial losses for shareholders. He probably won’t look very favorably on an entire arm of the company losing tens of millions of dollars in one year.

Do you think that Disney can ever financially recover? Tell us in the comments below!

The full Walt Disney EMEA (Europe, Middle East, and Africa) Productions Limited financial disclosure can be read below:

View Comments (4)