Disney can brag about how much debt cash they raised but the FY21 budgets reflect realism. A lot of low level and mid sized park projects are being crammed into the schedule just so they can use every scrap of cash left this year. It will not be available next year. ...
Epcot.... that's why I really came on here to post. That park is in serious trouble. The overall low attendance and park hours cuts have been talked to death. What doesn't seem to be discussed too much is how the loss of private events hurts. One medium sized event at Epcot paid for nearly a week's worth of Illuminations shows. This is a fall and winter season where that revenue is knee capped. The forward looking business on this front is not that great. So much so that the whole dinner table looking thing seems "off the table." The point of it was to massively increase event space and revenue ops.
Disney really backed themselves into a corner with the near term operations at Epcot. The new Ratatouille ride seems like its not opening until mid 2021. Word is Burbank wants all parks projects held off until 2021. They think a more appropriate time to bundle and market everything will arise then.
Well, we knew that being closed meant no income. Not only from the Epcot private parties as you mention, but from all the revenue from all the private parties in all the other parks and especially from convention income in the hotels. I guess we didn't talk about party and convention money because closed is closed. All revenue streams for the parks were kaput.
We wondered just how much being closed down and missing all that income would affect Disney. Would it bring it to the edge of bankruptcy?
And then we saw the 3rd Q report, and the answer was a resounding 'no.' The parts of Disney that were still profitable, namely the TV channels, cancelled out the loss from the other segments and Disney practically broke even for the quarter. A huge disappointment from not profiting in the billions, but, not going to lead to bankruptcy.
And we noted that Disney still had $23B in the bank and access to another $17B more in a credit line. We knew Disney could weather this for a whole year (or more) if it had to. I don't recall Disney "bragging" about its cash reserve except mentioning it in the 3Q finance call, along with all the bad things that were happening.
Our insiders here already told us the toadstool festival center was right out. We also knew that was the case already when the model was removed from the Epcot Experience Center.
Our insiders told us of the near panic that Disney was experiencing that led to shutting down all projects to conserve money. And then when the 3Q report came out along with being able to start re-opening the parks, the projects that were started and shut-down were re-started (mostly). Obviously Disney isn't that panicked any more about the future if they're going ahead with building Ratatouille, TRON, and Cosmic Rewind. Our insiders have said that some form of festival center will be built. And it seems that the projects that haven't started, but are still advertised in the Epcot Experience Center aren't off the table (yet, and RIP Poppins).
And our insiders have already said that Ratatouille is delayed and other unannounced projects that might have been in the pipeline are pushed back... quite understandably.