Coronavirus to cost Disney theme parks
The company expects a combined adverse impact to operating income of $175 million from the two parks in the second quarter
Walt Disney Co. shut down its theme parks in Shanghai and Hong Kong following the outbreak of coronavirus in China. The virus had killed more than 425 people and sickened thousands more worldwide as of Monday, according to the Associated Press.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The closure of Disney parks in China will "negatively impact second quarter and full-year results," chief financial officer Christine McCarthy said. The company expects a combined adverse impact to operating income of $175 million from the two parks in the second quarter, assuming they remain closed for two months.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DIS | THE WALT DISNEY CO. | 117.47 | -0.13 | -0.11% |
The full financial impact is "highly dependent on the duration of the closures," McCarthy added. Ongoing protests in Hong Kong have hurt hotel occupancy and attendance.
CORONAVIRUS SHUTS DOWN SHANGHAI DISNEY RESORT
The Walt Disney Company owns 43 percent of the Shanghai resort, with the majority 57 percent held by Shanghai Shendi Group, a joint venture of three companies owned by the Shanghai municipal government,according to Reuters.
CLICK HERE TO READ MORE ON FOX BUSINESS
It opened for business in June 2016. The decade-older Hong Kong park is 53 percent owned by the Hong Kong government, with Disne owning the remaining 47 percent.
FOX Business' Thomas Barrabi contributed to this article.