Disney had its earnings call on Thursday, and the state of California, and more specifically Governor Gavin Newsom, were hammered by CEO Bob Chapek for their reluctance to allow Disneyland to reopen. Chapek reiterated yet again on the call that the company’s reopening plans are “science-based,” and that the decision by the governor to refuse to allow Disneyland to reopen, as well as other major amusement parks like Universal Studios, Legoland, Six Flags and Knott’s Berry Farm, is not only damaging those businesses tremendously, but Newsom’s decisions are essentially completely killing off small business in the local community, particularly in and around Anaheim.
Not all the news was bad regarding Disney earnings, as the company reported more than 73 million paid subscribers to its Disney+ streaming service, which allowed the company to exceed expectations on revenue and showed Wall Street less drastic losses than expected.
Shares rose as much as 6% in after-hours trading and more than 3% during the call.
Now back to the horrible news for Disney, courtesy of Newsom and the state of California: They estimated that the net adverse impact of COVID-19 on the operating income of the company’s parks, experiences and products division pushed $2.4 billion in the fourth quarter.
So, all in all, it’s not the Happiest Place on Earth right now.