The Strategist

Disney expects losses due to coronavirus in China

02/05/2020 - 08:09

The Walt Disney Company expects a loss of $ 175 million if its theme parks in Hong Kong and Shanghai stay closed for another two months, CNBC reported. The parks stopped work due to the outbreak of coronavirus in China.

“The current closure of (parks) is taking place during the quarter, when we usually see high traffic and they are busy due to the Chinese New Year,” said Disney CFO Christine McCarthy.

According to her, the exact amount of losses depends on how long the parks will be closed and how soon the company will be able to resume normal operation. So far, Disney expects a loss of $ 135 million in Shanghai and about $ 40 million in Hong Kong in the second quarter.

Recall that the new coronavirus 2019-nCoV was detected in China in December 2019. 490 people have become victims of infection, the number of infected exceeds 24 thousand.