The Walt Disney Company’s Q4 Earning Call is about to begin and the Full Year Earnings Report for Fiscal 2020 was just released.
As a part of the report, Disney speaks to the effects of the global health crisis on the company this year and how it may affect the company next year. The company expects significant spending on safety measures into 2021.
According to the Earnings Report, Disney estimates that costs on safety measures for employees, talent, and guests will amount to approximately $1 billion in fiscal 2021.
They note that the reopening of businesses incurred costs and will continue to incur costs in order to “address government regulations and implement safety measures.” The report says that “the timing, duration, and extent of these costs will depend on the timing and scope of the resumption of our operations.”
Thus far, the global health crisis has had a significant effect on segments with theme park closures, reduced capacities after the parks reopened, suspension of cruise ship sailings and guided tours, and closure of retail stores.
Beyond that, merchandising, Studios Entertainment, theatrical releases, and stage play performances have been affected — in some cases to the point of significant delays or total cancellations. Media Networks and Direct-to-Consumer & International saw adverse impacts too.
We’re listening in to the Q4 Earnings Call and digging through the report RIGHT NOW, so, stay tuned to DFB for all the BIGGEST updates.
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