Disney’s Road to Coronavirus Recovery: Disney Q2 2020 Earnings LIVE!

It’s no secret that the Walt Disney Company has been one of the hardest hit companies during the Covid-19 pandemic. There are very few financial bright spots for Disney when most of its businesses have been shut down entirely or severely limited. Still the quarterly earnings report is a time for understanding the direction the company is heading. We’ll surely hear some interesting details from Executive Chairman of the Walt Disney Company Bob Iger, on how he plans to steer the company during this crisis. As theme parks fans we’ll be especially interested to hear any insight into when Disney Parks might begin to reopen and what that may look like. We’ll have live commentary tomorrow as it all goes down right here on Da Mouse.

Event
Disney Q2 Earnings Results
Location
Orlando, FL
Start time
4:30 PM EST
Event status
Finished
Raphael De Varona
5:51 pm

That's it folks. Overall a lot of what we expected.  I wasn't sure if Disney would be ready to open Shanghai Disneyland but I knew they'd want to announce a reopening if they could by today's earnings call in order to give investors hope that Disney isn't just going to continue burning cash.  Interesting to note was just how much of the call was helmed by CEO Bob Chapek.  For what it's worth I thought Iger struck the right balance today on the call.  Of course he started the meeting but he didn't even take a single question during the Q and A which I guess is what struck me the most from today's call.  

We'll have plenty more coverage in the coming days and months here on Da Mouse, but I want to take a moment to thank you for spending your time here.  We know these are incredibly difficult times and we pray for your families and loved ones and hope to provide honest coverage and a bit of normalcy during the epidemic.  We will get through this, stay safe, better days are coming.

Raphael De Varona
5:39 pm

Shanghai Disneyland attendance capacity is approx. 80,000 visitors a day.  Disney was asked by the Chinese government to open at 30 percent capacity and Disney will open far below that at the start for safety.

Raphael De Varona
5:33 pm

Gated Ticketing is how Disney is planning to deal with potential over-demand for their parks compared to the levels they set for park capacity.  This as everything is subject to change.

 

Raphael De Varona
5:29 pm

Q: How do you staff the parks? What signals may show a potential reopening of Disney Parks across the globe?

A: Because of pent up demand, the capacity level percentage will be full at whatever level Disney will set.

Da Mouse Take: Bob Chapek is very confident about Disney's attendance prospects once they reopen. 

Raphael De Varona
5:24 pm

Q: In Shanghai will guests be required to wear masks?

A: In Shanghai guests will have to wear masks as well as employees.

Da Mouse TakeThis will be strongly recommended in America but I don't think legally it will be required for guests. With the caveat that this is just educated speculation from what we are seeing so far. Obviously the pandemic data will dictate these decisions along with the laws of the governing nations. China as a communist nation will be the most restrictive.

Raphael De Varona
5:24 pm

Q: In Shanghai will guests be required to wear masks?

A: In Shanghai guests will have to wear masks as well as employees.

Da Mouse TakeThis will be strongly recommended in America but I don't think legally it will be required for guests. With the caveat that this is just educated speculation from what we are seeing so far. Obviously the pandemic data will dictate these decisions along with the laws of the governing nations. China as a communist nation will be the most restrictive.

Raphael De Varona
5:14 pm

Q: What is the Cash Burn on Parks and Resorts in the future.

A: Current results show about half of  the losses were from two weeks of domestic theme park closures, the rest being the foreign theme parks and other business closures.

Da Mouse Take: Expect next quarter to be a struggle as WDW and Disneyland will have been closed for far longer than a couple of weeks.

Raphael De Varona
5:06 pm

We are going through the nitty gritty of the financial details, for our purposes here at Da Mouse we are standing by for the opening of questions.  A segment that usually illuminates a few news worthy items.

Raphael De Varona
5:00 pm

Disney is saying there is limited visibility into when other Disney Parks outside of Shanghai Disneyland can reopen.  This also includes Disney Cruise lines.

Raphael De Varona
4:55 pm

$1.4 Billion Dollar Impact from COVID-19 on The Walt Disney Company.

Raphael De Varona
4:50 pm

Disney+ will rollout in Japan in June, Latin America towards the end of the year.

Raphael De Varona
4:49 pm

Bob Chapek is talking about the Disney films being pushed back due to movie theaters being closed.

Raphael De Varona
4:47 pm

The NFL Draft on ESPN had record viewership.

Raphael De Varona
4:46 pm

Shanghai Disneyland will open on May 11th.

Raphael De Varona
4:43 pm

Both are talking about their appreciation of the efforts of healthcare workers and The Walt Disney Company's own cast members.

Raphael De Varona
4:42 pm

CEO Bob Chapek now taking the helm of the call.

Raphael De Varona
4:40 pm

Iger is talking about the resilience of The Walt Disney Company and its brand even in the face of the pandemic.

Raphael De Varona
4:39 pm

Executive Chairman Bob Iger starts off the earnings call, not CEO Bob Chapek.

Raphael De Varona
4:37 pm

We got a quote from Bob Chapek in the press release. 

While the COVID-19 pandemic has had an appreciable financial impact on a number of our businesses, we are confident in our ability to withstand this disruption and emerge from it in a strong position,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “Disney has repeatedly shown that it is exceptionally resilient, bolstered by the quality of our storytelling and the strong affinity consumers have for our brands, which is evident in the extraordinary response to Disney+ since its launch last November.

Raphael De Varona
4:34 pm

Disney - "Diluted earnings per share (EPS) from continuing operations for the quarter

decreased 93% to $0.26 from $3.53 in the prior-year quarter..."

Me - That is a pretty crazy drop-off as expected and the next quarter will most likely be just as bad if not worse due to the closures.

Raphael De Varona
4:30 pm

(Disclaimer) Though we will discuss financial aspects of the Walt Disney Company you should not use our information for investment purposes. Please speak to your financial advisors before making any decisions that will affect your investment portfolio.

Raphael De Varona
4:25 pm

If you'd like to listen to Disney's Q2 Earnings live alongside us, here's the link.

Raphael De Varona
4:22 pm

Hello everyone! Thank you for joining us during this very turbulent time for our nation and the world. I hope we can help bring you the truth and honest coverage of the days events and how they affect our passion The Walt Disney Company. Today we stand to hear many interesting details about the future of The Walt Disney Company but it is not lost onto me how this news affects so many people across the entire globe. Again thank you for being here.  Now onto Da Mouse Live!

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