Disney says "circumstances" in Hong Kong weighed on its theme park profits at international Disneyland resorts.
The company said Thursday during an earnings call that growth in Disneyland Paris and the Shanghai Disney Resorts were offset by lower results at the Hong Kong Disneyland Resort.
"Circumstances in Hong Kong have led to a significant decrease in tourism from China and other parts of Asia and based on the trends we saw in Q4, and what we are seeing so far in Q1," Christine McCarthy, chief financial officer at Disney, said. "We expect operating income at Hong Kong Disneyland to decline by about $80 million for Q1."
Operating income in the Hong Kong park declined by $55 million during the fourth quarter, she said.
The "circumstances" Disney is alluding to are the major protests occurring in Hong Kong. The protests started in early June over a controversial extradition bill. What began as largely peaceful demonstrations have turned increasingly violent, with protesters torching metro stations and police firing tear gas.
