Analyst says Disneyland and Disney World profits will recover in 2022 and spike in 2023 – Orange County Register

Profits at the Disneyland and Walt Disney World resorts are expected to recover in 2022, spike in 2023, and soar higher in 2024 as Disney theme parks in the US recover after Pandemic shutdowns take a toll on profits, according to a new analyst report.

The financial outlook for Disney’s theme parks in Anaheim and Florida over the next few years looks positive after a few years marked by losses, according to a new analyst report from research firm MoffettNathanson. severely caused by the pandemic.

As MoffettNathanson reports, “While there are obvious difficulties in some of Disney’s legacy businesses, there are also strong difficulties for parks in both the short and long term.”

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Every Disney theme park around the world is closed at some point during the COVID-19 pandemic. The four Disney World parks reopen in July 2020 while Disneyland and Disney California Adventure reopen in April 2021.

Disney’s international parks have suffered a series of closures, but all have reopened – with the exception of Hong Kong Disneyland, which was forced to close for the fifth time amid a spike in omicrons. Temporary two weeks Closed Hong Kong Disneyland has now been extended to a month, with the park now scheduled to reopen on February 3.

“Despite the latest uncertainties over omicrons, it still looks likely that fiscal 2022 will bring a speedy recovery to parks profits,” according to the report.

SEE MORE: How Disneyland is taking omicron precautions

Since hitting a financial bottom in Q3 2020, Disney’s domestic theme parks have enjoyed a strong recovery and are returning to generating profits, as reported by MoffettNathanson.

Disney parks in the US recovered from a $1.6 billion loss in Q3 2020 to break even in Q3 2021 to an expected profit of $1.3 billion in Q3 2022, according to the report.

Disney parks in the US are expected to reach profitability levels in 2019 and generate $4 billion in earnings before interest and taxes by 2022, according to the report. These numbers are expected to grow to $5.2 billion in 2023 and $6.3 billion in 2024. This is higher than $4 billion in 2018 and $4.4 billion in 2019. during a pandemic.

Disney’s international parks are expected to take longer to recover with a forecast loss of $170 million for 2022 before rebounding to a profit of $475 million in 2024 – on par with pre-pandemic levels, according to the report.