Walt Disney Co (DIS)

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Disney Reverses Losses As CEO Says California Park to Reopen
By: Christiana Sciaudone | March 17, 2021

Investing.com -- Disney shares popped after the CEO said Disneyland would reopen next month.

Chief Executive Officer Bob Chapek told CNBC that its two California parks, which have been closed for about a year, will return to operations on April 30. Revenue for the quarter ended Jan. 2 was 53% lower than a year earlier for the parks, experiences and products division because of pandemic-related shutdowns.

The stock reversed earlier losses to trade slightly higher. Shares are trading about 3% short of a record hit earlier this month.

Disney has more than doubled over the past year with the start of Disney+, its streaming service, a division of the direct-to-consumer segment that saw revenue for the most recent quarter increase 73% to $3.5 billion.

The reopening will be limited at first, at just 15% of capacity, and should accelerate as vaccines become more widespread and Covid-19 numbers drop.

“I think as people become vaccinated, they become a little bit more confident in the fact that they can travel, and, you know, stay COVID-free,” Chapek said.

The company returned to operations in Florida last year.

“We’ve been operating at Walt Disney (NYSE:DIS) World for about nine months, and there certainly is no shortage of demand," Chapek said.

Disney’s hotels in California will also start opening next month.

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