Disney Warns Investors Of Coronavirus Impacts On Financials
News 19-Mar-2020
The Walt Disney company made a SEC filing today which warned investors about the troubled time ahead due to the Coronavirus pandemic.
"The impact of the novel coronavirus ("COVID-19") and measures to prevent its spread are affecting our businesses in a number of ways. We have closed our theme parks; suspended our cruises and theatrical shows; delayed theatrical distribution of films both domestically and internationally; and experienced supply chain disruption and ad sales impacts. In addition there has been a disruption in creation and availability of content we rely on for our various distribution paths, including most significantly the cancellation of certain sports events and the shutting down of production of most film and television content."
It appears they believe there will be some consumer behaviour changes after the pandemic which could impact earnings in the future.
"We expect the ultimate significance of the impact of these disruptions, including the extent of their adverse impact on our financial and operational results, will be dictated by the length of time that such disruptions continue which will, in turn, depend on the currently unknowable duration of the COVID-19 pandemic and the impact of governmental regulations that might be imposed in response to the pandemic. Our businesses could also be impacted should the disruptions from COVID-19 lead to changes in consumer behavior. The COVID-19 impact on the capital markets could impact our cost of borrowing. There are certain limitations on our ability to mitigate the adverse financial impact of these items, including the fixed costs of our theme park business. COVID-19 also makes it more challenging for management to estimate future performance of our businesses, particularly over the near to medium term."
Disney shares are trading at around $95, down from around $140 before the pandemic was declared.
Book your Disneyland Paris trip today and travel in safety and comfort of your own car and receive FREE crossing with P&O Ferries with your package booking for stays between 1st January 2024 - 27... Read more >
Welcome to a magical world that swings, slides and rocket-rides your mood until you start to feel a little more... you. Welcome to Walt Disney World Resort in Florida. Welcome back to being you.
... Read more >
Disney has today announced that the gold Walt Disney World 50th statues situated across the Walt Disney World theme parks will be sticking around a little longer! Disney will be removing the 50th... Read more >
In a new SEC filing, The Walt Disney Company disclosed a 10-year plan to "expand and enhance" its domestic and international parks, and cruise line capacity. Nearly double the amount spent in the... Read more >
Disneyland Paris and McDonald's have announced a new location will be constructed to host a new restaurant at Disney Village, Disneyland Paris.
Work on the new restaurant will begin in Septem... Read more >
Disney Parks live-streamed Disney Treasure event showcased the upcoming new ship. During the presentation Disney Cruse Line announced:
The three rotational dining restaurants will be Worlds Of... Read more >
Disneyland Paris has announced that much loved drone show called "Avengers: Power the Night" at Walt Disney Studios will return on select dates from 1st September, 2024, through January 7th, 2024... Read more >
With the 30th celebrations coming to the end, the much loved "Dream... and Shine Brighter" show (a show we highly praised) is coming to an end. Disneyland Paris today has announced that starting ... Read more >
Disneyland Paris has announced "Disney Symphony of Colors" will be coming to Disneyland Paris starting January 8th, 2024. Over the first few weeks of the new year, Disneyland Paris will gradually... Read more >
Disneyland Paris has announced an exclusive new Alice in Wonderland-themed stage show coming to Walt Disney Studios Park next Spring.
In the spring of 2024, guests of Walt Disney Studios Par... Read more >
