It's not Business as Usual for Disney's Theme Parks
There are now two Walt Disney (NYSE: DIS) theme parks open. Hong Kong Disneyland greeted guests on Thursday morning for the first time since closing during the COVID-19 crisis nearly five months ago; Shanghai Disneyland restarted last month.
Disney has significant but not majority stakes in the two resorts. Nonetheless, it still felt the pain of the disruptions. The media giant announced in early February that it would expect to take a $135 million charge for the Shanghai closure and a smaller $40 million hit in Hong Kong for its fiscal second quarter.
The shutdowns extended well into Disney's fiscal third quarter, so naturally the two resorts will weigh on the current reporting period as well. With capacity constraints and several safeguards in place, it remains to be seen when they will return to being positive contributors to Disney's profitability. The rest of Disney's parks won't open until at least the next quarter.
Source Fool.com
