Disney announced earlier this month that it was closing all of it’s theme parks around the world due to the coronavirus outbreak. Now the company could lose $500 million in lost admission revenue as its global attendance takes a 11 million visitor hit.
The parks are a major driver of the company’s sprawling entertainment business: Disney generated more than $26 billion in sales at its Parks, Experiences and Products division in fiscal 2019, representing 37% of the company’s overall revenue. Disney’s 12 theme parks around the world drew a combined 157.3 million visitors in 2018.
Buffeted by the coronavirus outbreak, the company on Friday said it had raised nearly $6 billion in a debt offering to shore up its debt structure amid the cascading effect of the global pandemic, including heightened fears of a recession that could slow the Burbank entertainment giant’s recovery.
Disney, in its regulatory filings, said it planned to use proceeds from the sale for “general corporate purposes,” including restructuring existing debt, making acquisitions, buying back shares or investing in its various business units.
“The outbreak of the novel coronavirus … and measures to prevent its spread are affecting our business in a number of ways, which should be considered in connection with an investment in the notes,” Disney said Friday in a Securities and Exchange Commission filing. “We have closed our theme parks; suspended our cruises and theatrical shows; delayed theatrical distribution of films both domestically and internationally; and experienced supply chain disruption and ad sales impacts.”