Disney has warned that profits from its parks in China could drop by $280 million in the current quarter, due to shutdowns caused by the coronavirus and a loss of business related to recent mass protests in Hong Kong.
The company added during its earnings call Tuesday that the coronavirus will hurt its results for the quarter through March and the fiscal year as a whole.
Closed businesses: Disney suspended operations at some of its facilities in China last month as the outbreak spread.
For now, the properties in Hong Kong and Shanghai are closed indefinitely, and “the precise magnitude of the financial impact is highly dependent on the duration of the closures,” chief financial officer Christine McCarthy said.
Operating income at the company’s Shanghai park could drop by about $135 million this quarter if the park remains closed for two months, she added.
Source: CNN