Disney takes $1 billion hit in earnings from coronavirus. Shanghai park to reopen Monday

Devoun Cetoute
·2 min read

The Walt Disney Co., like other businesses facing a steep decline in their business due to the coronavirus pandemic, on Tuesday reported a $1.4 billion cut in its earnings from the virus and other factors, and outlined when and how its Shanghai park would reopen.

On a Tuesday conference call with analysts, Disney said its total operating income fell 37 percent to $2.4 billion for the three months ended March 28, compared with the same period a year ago. Revenue rose 21 percent to $18 billion.

Disney decided to close its parks in mid-March due to the growing number of worldwide cases of COVID-19, the disease caused by the coronavirus.

As Florida and other states in the U.S. slowly begin to reopen, Disney has not said when and how it will reopen Walt Disney World in Orlando and Disneyland Resort in California.

Also on Tuesday, Disney announced that Shanghai Disneyland Resort in China would reopen Monday, May 11. China has been gradually reopening its economy, saying its number of new coronavirus cases has dropped sharply.

China reported one new reported COVID-19 case on Tuesday, and attributed that to a foreign traveler, CNBC reported. China, where the coronavirus originated, has seen 88,986 cases and 4,632 deaths, according to The New York Times. More than 78,800 people have recovered from the virus in China, Johns Hopkins University data show.

Shanghai Disneyland ”will implement new and enhanced health and safety measures reflecting the guidance of our local health and government authorities,” the company said.

Disney said the new safety protocols will include limiting attendance and requiring advanced ticketing and reservations; accommodating social distancing in queues, restaurants, rides and other parts of the park; and increased sanitization and disinfection.

The company reopened parts of Shanghai Disneyland in early March. On March 9, the theme park reopened limited shopping, dining and recreational experiences in Disneytown, Wishing Park and Shanghai Disneyland Hotel.

Disneytown and Wishing Park are comparable to Disney Springs at Disney World and the Downtown Disney District at Disneyland.

While there is no guarantee these measures will translate to the U.S. parks, Disney experts say it is becoming more likely American Disney guests can expect increased queues, reservations and fewer crowds when parks reopen.