If California Governor Gavin Newsom is forced to be challenged in a recall election this fall, which almost certainly will happen, it would be interesting to see how much campaign money flows in for a Republican opponent, courtesy of Disney.
While Walt Disney World in Florida and Shanghai Disney Resort have been open the entire first fiscal quarter, Disneyland has been shuttered like it has been all year, and same thing for Disney’s cruise business, which has been docked for 11 months.
Because of that, Disney reported a $2.6 billion loss in operating income in the first quarter. What makes executives for Disney seethe, is Newsom has shown zero leadership and direction on when the parks could open again. Currently there is no plan or timeline for them opening.
Disney CEO Bob Chapek laid it out in an earnings call Thursday. “Where we have been able to reopen our theme parks with limited capacity, guests have consistently demonstrated a willingness and a desire to visit which, we believe, is a testament to the fact that they feel confident in the health and safety protocols we’ve put in place.”
The losses just keep adding up for the Disney bottom line when it comes to park business. The earnings calls for Disney leaders is like a horror movie churned out by their film division, as investors had to learn about a total of almost $7 billion in lost revenue the past three quarters.
Is there a glimmer of hope, somewhere over the rainbow for Disney? Chapin said maybe. “Dr. Fauci said earlier today that he hopes there’s vaccines for everyone who wants them by April this year. If that happens, that is a game changer, and that could accelerate our expectations and give people the confidence that they need to come back to the parks.”