Disney to heavily reduce Capital Expenditures in the parks throughout 2020 during COVID-19 crisis

May 05, 2020 in "The Walt Disney Company"

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Posted: Tuesday May 5, 2020 5:01pm ET by WDWMAGIC Staff

Disney will reduce planned capital expenditure in 2020 by $900 million, which equates to $400 million less than the prior year.

The CapEx reduction was mentioned during today's quarterly earnings call by Christine McCarthy, Senior Executive Vice President and Chief Financial Officer.

McCarthy went on to say that the CapEx savings would be made by pausing refurbishment and construction projects.

Remy's Ratatouille under construction at EPCOT

This news would appear to significantly impact Walt Disney World, which is in the middle of a massive rework of EPCOT and preparing for the resort's 50th. Some projects, such as Remy's Ratatouille Adventure, are close to completion. Others, including the EPCOT core and Spaceship Earth redevelopment are far from complete, and some are still to break ground.

The EPCOT central core is still in a demolition phase

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Brad BishopMay 21, 2020

In 2009 they also saved money by not replacing the track at Space Mountain which, from my understanding, was the original plan.

tirianMay 21, 2020

A few years ago, that was the plan for the Imagination pavilion.

UNCgolfMay 17, 2020

That's why it's good that multiple parks exist for different people. There's absolutely nothing that interests me at Cedar Point; I wouldn't go for free. I like Universal, but it lags far behind Disney for me in most areas outside of the two HP lands and a handful of other specific rides.

doctornickMay 17, 2020

So, speaking of Epic Universe... it is slated to open in 2024 now. We know a bunch of projects for WDW that will likely end up being completed -- some might be pushed back, but we're probably talking something like Rat late 2020, Harmonius and Tron 2021, GotG (maybe the play pavilion?) 2022. But my point/question is that nothing announced or seemingly planning willbe opening up in 2024. One has to think that Disney won't want the Orlando market to be dominanted by news of Epic Universe opening and its details in 2024 and the lead up to that. So, will Disney have any sort of "counter programming" opening in the 2024 timeframe? And if so what might it be? Because if it is something big, it would probably need to start construction by next year given Disney's build rates. I guess the other argument is that they could just go for a new parade or fireworks show that have a smaller lead time to development but that seems like it would be pretty soft compared to an entire new park. I know @marni1971 mentioned that it is no longer on the table as being considered, but I think a ride based on Shangai POTC tech themed to Indiana Jones would be a good choice to garner attention to WDW in 2024.

peter11435May 17, 2020

It’s not a “bad look” when a company borrows money. It truly depends on the circumstances and in most cases it’s just standard business.

Rich BrownnMay 17, 2020

Disney borrowed long term loans to pay off short term debts. At a lower interest rate. They borrowed money, but since they are using it to pay off existing loans it doesn't increase the debt of the company. At least that is what has been reported. (Sort of like starting a new credit card with lower interest to pay off your higher interest card)

Jrb1979May 17, 2020

I don't mind Clownfish tv. Its good to see the other side of things and not look through Disney glasses that a lot of fans do. Its funny how a lot seem to defend anything Disney does. Its not a good look when any company borrows money. For some reason it's ok when the Rat does it. I don't hate the Rat I just found I didn't enjoy it as much as Universal or Cedar Point. The amount of planning really turns me off of Disney

CastAStoneMay 16, 2020

The appropriate reaction: Yay! Disney capitalized themselves appropriately at rates that will only cost them a little over 3% of their Net Income moving forward! And they still have about $80 billion in overall equity to borrow against if needed later! Great news!

WeLComeHomE OKWMay 15, 2020

what a terrible opinion. This is a worldwide financial crisis. Would you prefer for Disney to be bought out by some tech company or them go under just so you have what you want?

Giss NericMay 15, 2020

Oooh, spill the tea.. I find it funny that he himself goes to the parks but then reports negatively about it. He is one of those who goes just to find something to nitpick and talk about negatively. When he says something positive (which is rare), you can tell that's it's so forced or fake then he immediately follows it up with something negative. I'm all for honesty and constructive criticisms but he is the total opposite of that. He makes those videos obviously for views cause reporting on good/happy things is boring so why not be anti and negative all throughout right?

monothingieMay 14, 2020

There is a certain self proclaimed "Pro" insider on this forum that is continually and exclusively featured on their channel as well. hmmmmm....

Giss NericMay 14, 2020

I completely agree. It's basically an anti-Disney channel. I just want to show how ridiculous their videos are. Sad part is the comments section is toxic too.

Surferboy567May 14, 2020

This channel posts false news and is basically a “outrage” channel. It doesn’t belong here. EDIT: I will give credit where credit is due...that thumbnail though is incredible.