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01.07.2022 16:11:09

Great News for Disney: Shanghai Disneyland Has Reopened

The Walt Disney Company (NYSE: DIS) was crushed at the pandemic's onset when it was forced to turn away visitors to its theme parks temporarily. The segment is a lucrative source of revenue for the company, so the closures were harmful to the bottom line. While most of its parks have reopened and stayed open, its park in Shanghai has been closed for several months following an outbreak of COVID-19 in the region. Fortunately, the spread of the virus has subsided, and Shanghai Disneyland reopened on June 30. That's great news for Disney. Management noted that the closure of the Shanghai park could hit operating income to the tune of $350 million in the upcoming quarter. Over three months, the $350 million comes to roughly $117 million per month in losses. Disney's fiscal third quarter will end around July 2, so the benefits of reopening Shanghai Disneyland will fall into its fiscal fourth quarter. Continue reading
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