In a statement, corporate executives said the company''s second quarter financial results exceeded expectations, while investors noted that increased attendance, hotel bookings, and increased spending on food, beverages, and services.
The world''s needs for escapism are being rewarded by entertainment corporations like Disney. Nonetheless, the Kingdom of Mickey Mouse cant completely break away from real life. Earlier this week, the company''s second-quarter financial results exceeded analysts expectations, with strong results in three key business areas: domestic theme parks, streaming, and television advertising. However, financial analysts said the impact of Covid-19 is still being felt in their Asian theme parks.
According to a statement viaDeadline, Walt Disneys'' chief financial officer Christine McCarthy warned that the company might suffer a $350 million loss from its Hong Kong and Shanghai theme parks. The forecast blow to these parks operating income this quarter has somewhat tempered the divisions'' positive outlook. However, it is worth noting that some Disney international parks haven''t been open since the previous quarter.
However, during a company''s earnings call with analysts, McCarthy said progress at the Paris theme park promotes that things can improve in Asia.
With the opening of the Disney Paris Campus this summer (as part of an ongoing expansion) and strong demand at a large hotel calledMarvels Avengers, the European location is preparing for a cash influx in the coming months. McCarthy said: "What we are seeing in Paris gives me hope [though] hope is not a strategy, that our parks in Asia will see that same rebound when their Covid-related worries abate.
Investors were concerned about Disney''s subscription numbers for the second quarter, although the company had reported a financial drop in its most recent quarter. Luckily, Disney added 7.9 million subscribers to its streaming service. The percentage was 52% above what analysts had predicted. However, the stock stock exchanges remained high on Thursday.
The decline was unremarkable, as the Disney stock market has dropped by 30% from the beginning of the year, while it increased by more than 40% in January.CNBC says that this is because investors are wondering if the company can continue its streaming growth, posing a doubt about the possibility of a depreciation.
Over the last year, Disney theme parks saw signs of retaliation for pandemic consequences. Revenue for the company''s parks, experiences, and products more than doubled to $6.7 billion, compared to the same level last year. Higher ticket prices and increased spending on food, beverages, and goods also contributed.