The Walt Disney Company just wrapped up their Q2 earnings call with investors and although there were a few major announcements made during the call, Disney remained vague on the reopening for their domestic parks and a timeline for Disney Cruise Line.
Overall, Disney Parks, Resorts, and Experiences saw a 58% decrease in sales. Although it was mentioned that before the COVID-19 pandemic hit, sales were up from last year at this time. Disney reported that for the 2 weeks Disneyland and Disney World were closed for the quarter, as a direct result of that, they lost $500 million. Overall, Disney posted a $1 billion loss.
Shareholders were able to ask questions at the end of the call and the topic of Disney Cruise Line came up. The question was asked if Disney, in an effort to scale back and recoup the money, was considering canceling their latest ship order for 3 new Disney Cruise Line ships?
The question wasn’t answered specifically, leaving some to speculate that Disney has no plans of canceling their order ship order. However, Disney’s CEO- Bob Chapek, went on to answer by saying, “We agree that Disney Cruise Line will probably be the last of our travel-oriented businesses that will come back online.” Disney seems to be more confident in their cruise line, than concerned. Chapek added to his answer by saying, “Long term, our guests will be just as interested in cruising with us. Not in the next few months. But they will be much more resilient to come back because they trust our business to act in a responsible way, to protect them against some of the woes that have plagued the industry since COVID has hit.”
The Walt Disney Company’s Senior Executive Vice President and Chief Financial Officer, Christine McCarthy added to the feeling of confidence Disney had towards their cruise line by saying, “This is a business that is one of our highest-rated businesses, in terms of guest satisfaction and also has a very high intent to repeat the experience. So a lot of people who go on one tend to go on many. It’s a very nice returning business creating value long term for shareholders.”
As of right now, Disney Cruise Line remains suspended and has no scheduled sailings until the end of June.