Disney: Coronavirus could cost company $175 million Leaders warn of financial impact of theme park closures

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%.

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 closures come in the height of a busy tourism season celebrating the Chinese New Year.

The virus has infected almost 10,000 people worldwide and killed more than 200, the Association 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.

Much of Tuesday’s call centered around Disney Plus, the company’s streaming service that has collected nearly 27 million paying subscribers. Disney announced its “Star Wars” series “The Mandalorian,” is returning for a second season in October.

The company’s quarterly earnings beat Wall Street forecasts, Reuters reported.

Revenue increased to nearly $21 billion, up 36% from a year earlier.

Theme parks also grew steadily in the quarter.

Attendance for Disney’s U.S. theme parks rose 2% compared to the previous year, the company reported. The theme park division generated $7.4 billion, an 8% jump from the same time period last year.

Per capita spending jumped 10% from more money spent on theme park admission, merchandise as well as food and beverage.

On Dec. 5, Disney opened its Rise of the Resistance attraction at Hollywood Studios, which Iger called Tuesday a fan favorite. Got a news tip? grusson@orlandosentinel.com or 407-420-5470; Twitter, @GabrielleRusson

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