Closed Asian Parks Could Cost Disney $175M

Keeping its Asian theme parks closed an estimated two months because of the Coronavirus outbreak could cost Disney $175 million, the company revealed Tuesday, as it released first-quarter earnings that showed its U.S. theme parks grew attendance by 2%.

The Orlando Sentinel reports Disney leaders said they expect a $135 million hit on second-quarter operating income from Shanghai Disney and $40 million from Hong Kong Disneyland, which both closed indefinitely last month.

Disney leaders warned investors that the Asian theme parks’ impact could be felt on Walt Disney Co.’s upcoming second quarter and for the entire fiscal year.

“The precise magnitude of the financial impact is highly dependent on the duration of the closures and how quickly we can resume normal operations," the company’s chief financial officer Christine McCarthy said during Tuesday’s earnings call.

The virus has infected almost 10,000 people worldwide and killed more than 200, the Associated Press reported earlier this month.

Disney CEO Bob Iger started Tuesday’s earning calls by sharing his concerns for people around the globe affected.

At Walt Disney World, visitors from Asian countries represent a smaller number of foreign travelers compared to other places like the United Kingdom, McCarthy said.