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Shutdown Costs Disney $1.4 Billion

(Reuters) – Walt Disney Co estimated on Tuesday that global measures to contain the coronavirus pandemic cut profits by $1.4 billion, mostly from its shuttered theme parks, but said it would reopen Shanghai Disneyland to a reduced number of visitors next week.

It is unclear when Disney’s other parks in Asia, the United States and France would again welcome visitors, executives said, or when the company’s range of idled businesses including retail stores and cruise ships would return.

Disney said it will not pay a dividend for the first half of the fiscal year, which will preserve $1.6 billion in cash assuming it had kept the dividend constant at 88 cents per share.

Bob Chapek, who became Disney’s chief executive in February just as the novel coronavirus was spreading around the globe, said Disney would reopen the Shanghai park on May 11.

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