Disney Theme Parks To See Spike In Profits in 2023 According to Analysts
Things are looking up for the theme parks sector of The Walt Disney Company according to a recent piece in the OC Register that covers a report recently released by research firm MoffettNathanson. According to the report, profits at Disneyland and Walt Disney World are expected to rebound this year, spike in 2023 and continue an upward trend into 2024.
The report looks favorably on the theme parks ability to bounce back from lengthy pandemic closures that damaged Disney’s bottom line. Both Disneyland and Walt Disney World will have a strong few years after two years that were massively impacted by “steep pandemic losses.”
“While there are clear headwinds in some of Disney’s legacy businesses, there are also strong tailwinds for the parks in both the near and long term,” according to the MoffettNathanson report.
As we’ve previously reported here at MickeyBlog, every Disney theme park around the globe had to close due to COVID-19 with Disneyland and Disney California Adventure remaining closed for over a year before finally reopening in April of 2021. Though Disney’s International Parks have also been able to bounce back, a new COVID variant has meant that Hong Kong Disneyland was recently forced to close for a fifth time. The closure is expected to last at least a month (the park is slated to reopen on February 3rd.)
However, MoffettNathanson believes the worst is over when it comes to theme park closures advising that it still seems like 2022 fiscal year will bring a return to profitability.
If you’ve been following along with our coverage of Disney’s quarterly earnings call you’ll know that Disney theme parks experienced a loss of $1.6 billion not breaking even until the third quarter last year. MoffettNathanson expects to see a profit of $1.3 billion in the third quarter of this year.
This year, the parks are supposed to reach pre-pandemic levels in terms of profitability with $4 billions in earnings. This is expected to continue on an upward climb reaching $5.2 billion in 2023 and $6.3 billion in 2024. According to the OC Register, International parks will lag behind with a loss predicted again for this year. By 2024 a profit of $475 million is expected.
The bottom line from this MoffefNathanson report is that in the end, it looks like the theme parks will bounce back quicker than originally anticipated. This is a story that we will continue to follow closely here at MickeyBlog. Readers are encouraged to keep checking back with us for further news and updates.
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Source: OC Register