Coronavirus shutdown cost Disney $3.5 billion in theme park revenue in the third quarter

In this handout photo provided by Walt Disney World Resort, guests stop to take a selfie at Magic Kingdom Park at Walt Disney World Resort on July 11, 2020 in Lake Buena Vista, Florida. July 11, 2020 is the first day of the phased reopening.

Matt Stroshane | Walt Disney World Resort | Getty Images

While Disney was able to reopen most of its international theme parks in recent months, the continued closure of Disney World and Disneyland in the U.S. resulted in a big financial hit.

On Tuesday, the company said the Covid-19 outbreak cost its Parks, Experiences and Products segment around $3.5 billion in lost revenue during its fiscal third-quarter.

That unit includes all six of Disney’s international theme parks, its cruise lines, hotels and tours, as well as its merchandise. 

In the quarter, which ended June 29, Disney reported an 85% drop in this segment, with revenue falling to $1 billion.

While parks in Shanghai, Hong Kong and Japan were able to reopen during the quarter, most of Disney’s parks business comes from its U.S. locations. Disney World in Florida reopened in July, after the quarter ended. Disneyland in California has not yet set opened back up, as the state government hasn’t provided reopening guidelines for amusement parks.

Disneyland in Paris reopened in July.

Disney also reported declines in merchandise licensing and its retail business, further weakening operating results, as its stores were closed for most of the quarter.

This is a breaking news story. Check back for updates.

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