The Waly Disney Company continues to struggle in 2020, as the entertainment conglomerate first has reported its first annual financial loss in over 40 years, suffering a loss of over $5 Billion USD in revenue as a direct result of the ongoing COVID-19 pandemic.
"Even with the disruption caused by COVID-19, we've been able to effectively manage our businesses while also taking bold, deliberate steps to position our company for greater long-term growth", Disney CEO Bob Chapek said in a prepared statement.
Overall, Disney's direct-to-consumer segment saw revenue grow 41% year-over-year to $4.9 billion, while its operating loss fell from $751 million in Q4 2019 to $580 million this year.
Chapek reportedly specifically went on to complain that the park's reopening plans that they submitted to the state were "science based" and supported by the unions of their employees.
Report said that this shows signs of increasing demand and trust in Disney parks.
And Disney Cruise Line is another part of the company slammed by the pandemic.
A live-action reboot of "Mulan", produced in hopes of scoring a big payday from Chinese theaters, instead alienated audiences there who critiqued its take on their country's history and grossed a paltry $40.7 million in China. The stock was down 6.3 per cent this year through Thursday's close.
Disney executives have taken a publicly aggressive approach to lobbying to reopen Disneyland, a departure for a company that usually tries to steer clear of controversy. However, Chapek singled out California's recent decision to keep theme parks, including Disneyland, closed into 2021 as coronavirus cases soar in the state, as well as across the US.
"We're extraordinarily dissatisfied that the state of California continues to preserve Disneyland closed regardless of our confirmed observe file", he mentioned on the fourth-quarter earnings name. Chapek said he was "extremely disappointed" California's government hadn't loosened restrictions for Disneyland.
Results in the quarter and fiscal year ended October 3, 2020 were adversely impacted by the novel coronavirus (COVID-19).
In Orlando, it is a different story, she added.
Most of Disney's theme parks, including its flagship resort in Florida, opened up for visitors during the quarter, but with limited attendance, mask requirements and other safeguards.