It’s no surprise that the Disney company has had a hard year when it comes to the theme parks.
Last month, we learned during the recent company earnings call that Disney had lost billions in revenue from the park closures earlier this year. Now, many of the parks are open again and Disney executives say that they are making a net positive contribution to the bottom line. But how long until Disney’s earnings are back where they used to be?
According to the Orange County Register, Deutsche Bank analysts are weighing in in a new report about the coming years for the Walt Disney Company. The analysts explain that the 2021 Fiscal Year will likely constitute another “lost year” for Disney Parks, Experiences, and Products.
Ultimately, the forecast for the decline in Disney Parks, Experiences, and Products revenue for 2020 is expected to be a whopping $9.8 billion. Analysts consider Disney unable to see a full recovery until a treatment and vaccine are widely available, predicting a return to pre-pandemic revenues all the way in 2023.
It isn’t all bad news though. At this time, analysts do note that “We believe the recovery in theme park attendance is progressing, albeit gradually.” This improvement in attendance is one that could be seen with the crowd levels in Disney World during Labor Day weekend. The assessment is that the recovery trend will continue as cases in Florida decline.
Plus, though 2021 may be lost, the Deutsche Bank analysts are forecasting “substantial improvement” in 2022 with pre-pandemic revenues returning in 2023. Even better for the company, the report notes that the Disney Parks, Experiences, and Products sector may see revenue at $10 billion higher than pre-pandemic levels by 2025.
Outside of the theme park division, Disney is still considered in good shape. Despite such a long road to recovery for the parks, the Deutsche Bank upgraded Disney’s stock on the strength of Disney+. Now, Disney stock is once again considered “Buy.”
As always, stay tuned to DFB for the latest updates and to hear about the newest financial predictions for the Walt Disney Company.
Join the DFB Newsletter to get all the breaking news right in your inbox! Click here to Subscribe!
What do you think of the current financial situation at Disney? Tell us in the comments!