Disney to increase park capacity as company emerges from COVID-19 pandemic

ORLANDO. Fla — In its Thursday Q2 earnings report, Disney CEO Bob Chapek indicated that Walt Disney World had already started to increase theme park capacity beyond its last reported level of 35% and that the company would, following new CDC guidelines continue to increase guest levels.

The news comes as the company issued what was seen by Wall Street as a “mixed bag” or earning numbers.

“We’re pleased to see more encouraging signs of recovery across our businesses, and we remain focused on ramping up our operations while also fueling long-term growth for the Company,” wrote Chapek in the Q2 report. “This is clearly reflected in the reopening of our theme parks and resorts, increased production at our studios, the continued success of our streaming services, and the expansion of our unrivaled portfolio of multiyear sports rights deals for ESPN and ESPN+.”

READ: Sale of Four Seasons Resort Orlando at Walt Disney World fetches staggering price

One of the bright spots for the company during the stay-at-home orders has been the growth of Disney+ which reported more than 103-million subscribers. Although that figure was shot of the 100-million expected by analysts, it does put the platform on the path towards profitability by 2024.

“Since late in the second quarter of fiscal 2020 and continuing into fiscal 2021, COVID-19 and measures to prevent its spread have impacted our segments in a number of ways, most significantly at Disney Parks, Experiences and Products segment where our theme parks were closed or operating at significantly reduced capacity and cruise ship sailings and guided tours were suspended,” wrote the company in its Q2 release. “In addition, we have delayed, or in some cases, shortened or canceled, theatrical releases, and stage play performances have been suspended since March 2020 with a limited number of performances returning in the first quarter of fiscal 2021.”

READ: Disney announces plans to phase out temperature screenings

Wall Street reacted to the news as shares of Disney dropped about 4% in late trading mainly because revenue came in slightly under estimates as the company contuse to emerge for the pandemic.

READ: See where in Florida you might still be required to wear a face mask

1 of 25