×

Disney Expects Coronavirus to Deal Theme Parks $175M Blow

The spread of coronavirus in China could deal a blow to the operations of Disney’s theme parks in Hong Kong and Shanghai.

Speaking during a call with investors Tuesday, Walt Disney executives said they expected the virus to result to affect $135 million in second-quarter operating income if its Shanghai Disneyland resort is closed for two months and around $40 million in operating income if Hong Kong Disneyland is closed for the same amount of time. Disney had already said that the Hong Kong facility had been affected by protests in the region.

“The current closure is taking place during the quarter in which we typically see strong attendance and occupancy levels due to the timing of the Chinese New Year holiday,” said Christine McCarthy, Disney’s chief financial officer, during the call.“The precise magnitude of the financial impact is highly dependent on the duration of the closures and how quickly we can resume normal operations.”

Executives did not think the coronavirus would affect visitation to its U.S. parks. Visitors from Canada, Mexico, Australia and the U.K. are more prevalent at those attractions than tourists from Asia.

The Walt Disney Company owns 43% of the Shanghai resort, with the majority 57% held by Shanghai Shendi Group, a joint venture of three companies owned by the Shanghai municipal government. It opened for business in June 2016. The decade-older Hong Kong park is 53% owned by the Hong Kong government, with Disne owning the remaining 47%.

More TV

  • The Eddy

    'The Eddy': TV Review

    “Jazz is Paris and Paris is jazz,” spoke-sang Malcolm McLaren a quarter-century ago, though the statement is valid as ever today: Since the end of World War I, when a number of African American soldiers settled in Paris — and still others left their music behind — the city has become a kind of world [...]

  • GREY'S ANATOMY - ABC's "Grey's Anatomy"

    'Grey's Anatomy' to Officially Send Off Justin Chambers in March 5 Episode (Watch)

    Justin Chambers’ last onscreen appearance in “Grey’s Anatomy” was back in November 2019, but his longtime character Alex Karev will officially get his sendoff in the March 5 episode. A trailer for the episode entitled “Leave A Light On” (which you can watch above) flashes back through Chambers’ 15 seasons on the show, seeing his [...]

  • One Day At A Time -

    TV News Roundup: 'One Day at a Time' Casts Marla Gibbs and Reggie Watts

    In today’s TV news roundup, Marla Gibbs and Reggie Watts have been cast in guest roles on “One Day at a Time” and Netflix released the premiere date and teaser for “The Eddy.” CASTINGS Marla Gibbs and Reggie Watts have been cast in guest roles on PopTV’s “One Day at a Time.” The two actors [...]

  • Sofia Vergara Heidi Klum2

    Sofia Vergara, Heidi Klum Set as 'America's Got Talent' Season 15 Judges

    Sofia Vergara has signed on as a judge for the upcoming 15th season of “America’s Got Talent” at NBC, Variety has learned. In addition, Heidi Klum is returning to the show for the first time since 2018. They join the current judging panel that consists of Simon Cowell and Howie Mandel, with Terry Crews serving [...]

More From Our Brands

Access exclusive content