Profits at Disneyland and Walt Disney World resorts are expected to rebound in 2022, soar in 2023 and increase in 2024 as Disney’s U.S. theme parks rebound from pandemic shutdowns that damaged results, according to a new analyst report .
The financial outlook for Disney theme parks in Anaheim and Florida over the next few years looks solid after two years marked by steep pandemic losses, according to a new analyst report from research firm MoffettNathanson.
“While there are clear headwinds in some of Disney’s legacy businesses, there are also strong tailwinds for the parks in the short and long term,” according to MoffettNathanson’s report.
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All Disney theme parks around the world closed at some point during the COVID-19 pandemic. All four Disney World parks reopened in July 2020 while Disneyland and Disney California Adventure returned in April 2021.
Disney’s international parks have suffered a series of closures, but have all reopened – except for Hong Kong Disneyland, which was forced to close for the fifth time amid the omicron’s ramp-up. A two-week temporary closure of Hong Kong Disneyland has now been extended to a month, with the park now scheduled to reopen on February 3.
“Despite the latest omicron uncertainties, it still looks like fiscal 2022 will bring a rapid rebound in park earnings,” according to the report.
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Since the financial low in the third quarter of 2020, Disney’s domestic theme parks have experienced a strong rebound and are starting to generate profits again, according to the MoffettNathanson report.
Disney’s U.S. Parks rebounded from a loss of $1.6 billion in the third quarter of 2020 to break even in the third quarter of 2021 to an expected profit of $1.3 billion in the third quarter of 2022, the report said. .
Disney’s U.S. parks are expected to approach 2019 profitability levels and generate $4 billion in earnings before interest and taxes in 2022, according to the report. Those numbers are expected to hit $5.2 billion in 2023 and $6.3 billion in 2024. That’s well above the $4 billion in 2018 and $4.4 billion in 2019 before the pandemic hit. hit.
Disney’s international parks are expected to take longer to recover with a forecast loss of $170 million for 2022 before rebounding to a profit of $475 million in 2024 – on par with pre-pandemic levels, according to the report.
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The financial turnaround for Disney theme parks has happened much faster than originally anticipated at the start of the pandemic — in part due to the rapid development of COVID-19 vaccines.
A decline of $21.7 billion in overall Disney theme park revenue forecast by MoffetNathanson from May 2020 to 2022 from fiscal year 2019 levels now amounts to an estimated decline of $11 billion for the same period in the latest report – still staggering by any standards, but about half of the original estimate.