Disney cautioned investors on its fourth-quarter earnings call that the Hong Kong protests could cost the company $275 million in operating profit next year.
The media conglomerate is projecting operating income will fall $80 million at Hong Kong Disneyland during the first quarter of 2020 alone.
The warning comes as widespread protests over the last several months have thrust Hong Kong into its first recession in a decade.
Watch Disney trade live on Markets Insider.
If months of protests in Hong Kong spill over into 2020, Disney says it could absorb a $275 million hit to its operating income.
The media conglomerate said operating profit fell $55 million at Hong Kong Disneyland in the fourth quarter amid mass pro-democracy protests. The losses offset growth at Disneyland Paris and the Shanghai Disney Resort, CFO Christine Mary McCarthy said on Disney’s most recent earnings call.
“Circumstances in Hong Kong have led to a significant decrease of tourism from China and other parts of Asia,” McCarthy added.
The company also said in its earnings release that “lower results at Hong Kong Disneyland Resort were due to decreases in attendance and occupied room nights reflecting the impact of recent events.”
If the …read more
Source:: Businessinsider – Finance