Disney is bullish on demand for its theme park experiences, especially once the coronavirus pandemic has subsided, though its financial results saw that segment of the business again operating at a loss in the first quarter of fiscal 2021.
CEO Bob Chapek said guests want to visit the parks that have reopened, which he believes is a testament to their comfort level with health and safety protocols Disney has put in place.
Chapek, speaking on Disney's financial earnings call Thursday afternoon, said average daily attendance at Orlando's Walt Disney World Resort "grew significantly" in the first quarter from the quarter prior.
"It's clear that people want to reconnect with loved ones and spend time together doing things they enjoy, and given the demand we're seeing now, we're confident it will only grow once the pandemic is behind us," Chapek said.
CFO Christine McCarthy said the Walt Disney World Resort and Shanghai Disney Resort were both open for the entire first quarter, albeit at reduced capacity of 35%. The Disneyland Resort in Anaheim, Calif., was closed, and Disney's cruise business was suspended, for the entire quarter. Disneyland Paris was open until the end of October, about one-third of the quarter, while Hong Kong Disneyland Resort was open about two-thirds of the quarter, until the beginning of September.
At the parks and resorts that were open, McCarthy said, "revenue exceeded the variable costs associated with opening."
The company was pleased with the rate of bookings in the current quarter, she added, and consumer sentiment over visiting in the longer term remains strong.
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Currently, Disney is projecting Disneyland and Disneyland Paris will remain closed for the entirety of the second quarter. McCarthy said the company is hopeful it will be able to reopen its Hong Kong resort during the quarter.
The Disneyland Resort is currently operating as a vaccine distribution site in California. According to Chapek, more than 100,000 doses of the Covid-19 vaccine have been administered there.
Overall in the first quarter, the Walt Disney Co.'s net income fell 99% to $29 million, while revenue fell 22% to $16.2 billion.
Revenue in the Disney Parks, Experiences and Products segment fell 53% to $3.6 billion. The segment operated at a loss of $119 million for the first quarter, down $2.6 billion.