Walt Disney Loses $1.4 Billion Due to Coronavirus
Walt Disney estimated Tuesday that global measures to contain the coronavirus pandemic cut earnings by $1.4 billion, mostly from its shuttered theme parks, however, stated it would reopen Shanghai Disneyland to a reduced number of guests a subsequent week.
It’s unclear when Disney’s other parks in Asia, the U.S., and France would again welcome guests, executives stated, or when the company’s range of idled businesses together with retail stores and cruise ships would return.
Disney stated it wouldn’t pay a dividend for the first half of the fiscal year, which can preserve $1.6 billion in cash, assuming it had stored the dividend constant at 88 cents/share.
Bob Chapek, who became Disney’s chief in February as the novel coronavirus was spreading across the globe, stated Disney would reopen the Shanghai park on May 11.
The Chinese authorities have urged Disney to cap attendance at 30% of capacity, or around 24,000 individuals, Chapek stated. Disney will restart operations with far below that number for a few weeks while it adjusts to new safeguards along with social distancing, masks, and temperature screenings, he said.
Three months ago, Disney was boasting about a record year for its movie studio and a strong beginning to the company’s dive into the streaming media wars.
In late January, the coronavirus started battering companies throughout Disney’s global portfolio when the corporate shut Shanghai Disney Resort and Hong Kong Disneyland.
By mid-March, all the firm’s theme parks had been closed, movie theaters went dark, and TV and film production have been put on hold. Plus, Disney’s ESPN sports network was left with no major live sports shows/events to broadcast.