Disney sees $ 350 million in profit from Hong Kong and Shanghai theme parks in the current quarter

Christine McCarthy, Walt Disney’s Chief Financial Officer, said Wednesday that the company could see a $ 350 million drop in operating income in the current quarter, its third fiscal year, from theme parks in Hong Kong and Shanghai, softening lightly the underwriting department of the parks.

Hong Kong Disneyland underwent table tennis and just opened on April 21st. The Shanghai Disney Resort was closed in late March due to the reactivation of Covid and is still closed until further notice.

“But this is a two-city tale,” McCarthy told the company’s earnings analysts. Part of the ever-expanding and highly sought-after grand hotel that has once again become a Marvel’s Avengers theme.

“What we see in Paris gives me hope [although] “There is no hope that our parks in Asia will experience the same ups and downs as Covid-related winds drop,” he said.

American parks are in pristine condition, full of more goods, food and drink per capita than ever. Guardians of the Galaxy: The Space Shuttle, which opens later this month at Walt Disney World’s Epcot Center, “will always be a new powerhouse,” McCarthy said.

However, Disney is not immune to broader macroeconomic factors, such as two-decade high inflation that has cost companies more and many are passing on these high prices to consumers. Among other things, energy costs have risen. The CFO noted that Disney has a robust energy hedging program that reduces its impact on high fuel costs, for example. But Wall Streeters fear that if inflation doesn’t slow down soon, the US parks boom could slow as fans may be less able to afford an already expensive hike.

Disney + added nearly 8 million subscribers in the fiscal quarter, up from nearly 20 million in the past six months

Disney is also experiencing wage pressures in parks and wider supply chain disruptions, which McCart says is working closely with suppliers and carriers.

Sales in the Parks Division doubled to nearly $ 6.7 billion in fiscal second quarter, from $ 3.1 billion a year ago. Operating profit was $ 1.8 billion, compared with a loss of $ 400 million last year.