After shutting down its parks in Shanghai and Hong Kong due to the coronavirus outbreak and political protests, Disney is expected to lose $280 million in profit in the current quarter, according to CNN.
The company’s losses could impact its results through March and the entire fiscal year, Disney revealed in an earnings call on Tuesday, CNN reported.
“The precise magnitude of the financial impact is highly dependent on the duration of the closures and how quickly we can resume normal operations.” Disney’s chief financial officer Christine McCarthy said in Tuesday’s call, according to CNBC.
If the Shanghai park remains closed for two months, its operating income could fall by $135 million this quarter, while the Hong Kong park — which had already experienced a drop in visitors due to political protests in 2019 — could lose $145 million, according to CNN.
“The current closure is taking place during the quarter in which we typically see strong attendance and occupancy levels due to the timing of the Chinese New Year holiday,” McCarthy said, according to CNBC.
However, Disney is expected to get a boost from its domestic parks, including its new Rise of the Resistance ride at Star Wars: Galaxy’s Edge.
During the earnings call on Tuesday, Disney CEO Bob Iger said that Rise of the Resistance has “done extremely well” in attracting guests and increasing visitor spending, CNBC reported.