Universal Studios Theme Parks Are Closed. That Doesn't Mean Disaster For Comcast.
The economic fallout from the coronavirus crisis is mounting, and one of the hardest-hit industries remains travel and entertainment. Though it will earn points by continuing to pay its employees, Disney (NYSE: DIS) has now announced its parks will be closed indefinitely. As a huge chunk of revenue and profits is derived from people visiting the Magic Kingdom, the situation will hit hard for the world's most popular theme park operator.
Closures could last until May now that the White House has extended social distancing guidelines through April 30. How severely this affects theme park operators depends on the operator. In the middle, you have Disney, which could see its operating profit dry up completely due to its parks going dark until the crisis has passed. But it has other business lines to fall back on. The situation is much more dire for companies like Six Flags Entertainment (NYSE: SIX) and SeaWorld Entertainment (NYSE: SEAS) that derive virtually all of their income from the parks they operate.
But on the other end of the spectrum is Comcast (NASDAQ: CMCSA). Yes, Comcast, the oft-hated telecommunications company will be relying on its telecom segment to help it navigate these tough times.
Source Fool.com
