Theme parks and resorts report reduction in visitors as Covid-19 slows travel demand
At a time when technology companies are getting hammered over consumer privacy issues, Disney is running the happiest police state on earth. Picture: BARRY KING/WIREIMAGES/GETTY IMAGESProfit estimates for Disney’s division comprising its theme parks and resorts have dropped sharply in recent weeks as the highly contagious Delta variant of the Covid-19 virus spreads in areas with low vaccination rates and threatens to ratchet back travel demand.
As recently as May — after Disney was finally able to reopen its two California theme parks — the average analyst estimate called for more than $120m of operating profit from parks, experiences and consumer products for the latest quarter, according to data compiled by Bloomberg. Analysts now expect just $41m for that unit when Disney reports earnings on Thursday after the close of trading. Projections for the current period have also slipped as they await Chapek’s insights on the call later.
Disney’s parks were the bright spot in the company’s last earnings report, as subscriber gains slowed for its streaming-TV platform Disney+. The bright spot this time may be a business that investors have trouble viewing as particularly attractive these days: the highly profitable cable-TV networks.
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