Disney announced the news during its second-quarter earnings report. The revenue loss came as a result of the COVID-19 pandemic forcing the theme parks to close. Despite the revenue loss, the House of Mouse earned $18 billion in total revenue, which was above Wall Street’s expectations.
The parks’ revenue went down by 10 percent to $5.5 billion, while segment operating income declined 58 percent to $639 million. Disney correlated high costs to its new attractions, paying employees during the COVID-19 shutdown and inflation.
The earnings report came out just as both California and Florida, homes of Disneyland and Disney World, respectively, begin to reopen their economies. Florida is considering a staggered approach to reopening large theme parks with new social distancing guidelines in line with the federal government.
Some analysts speculated the Disney theme parks would not open until 2021. However, despite the problems with Disney’s American theme parks, Shanghai Disneyland will reopen on May 11. However, the park is only expected to operate at 30 percent capacity.
KEEP READING: Disney Updates Park Reopening Statuses Worldwide
Disney reported that its theme parks have lost the company $1 billion in revenue due to the coronavirus (COVID-19) pandemic.