Park closures in Asia could cost Disney millions of dollars in revenue, the company warns.
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Disney has temporarily closed its theme parks in Shanghai and Hong Kong due to the coronavirus, and it could cost the company nearly $175 million.
“Our hearts go out to all those affected by this devastating outbreak, including the thousands of people who worked for us in the region,” Disney CEO Bob Iger said during an earnings call on Tuesday. He added that the company will closely monitor the public health crisis.
The closure of the two parks, depending how long it lasts, could have an adverse impact during the second quarter of a combined $175 million, Disney CFO Christine McCarthy said during the call. The company estimates a loss of approximately $135 million from the Shanghai park and approximately $40 million from the Hong Kong park.
While that’s a hefty sum of money, Disney Parks and Consumer Products division brought in $7.4 billion in revenue during the company’s first fiscal quarter, which ended Dec. 28. Domestic resort reservations and hotel bookings are also up, said McCarthy.
Coronavirus, which originated in Wuhan, China, has spread across Asia and to the US, Australia, Europe and the Middle East, with the illness exhibiting pneumonia-like symptoms. It was first reported to the WHO on Dec. 31, and there have now been more than 20,000 confirmed cases and more than 400 deaths.
Notices on the websites for the Shanghai and Hong Kong parks say the company is in contact with health officials and the local governments, and that reopening dates will be announced when they’re determined. Disney is also offering refunds for some ticket and hotel bookings.
Originally published Feb. 4.
Update, Feb. 5: Adds more details from Disney’s first fiscal quarter.