Reuters
Disney: SARS May Worsen Theme Parks Slump
Friday April 11, 1:20 pm ET
LOS ANGELES (Reuters) - Fear of SARS, the pneumonia-like illness sweeping Asia, could deliver another blow to already slumping visits to Walt Disney World, No. 1 theme park operator Walt Disney Co. told securities regulators.
Burbank, California-based Disney recently cut its profit target for 2003, citing the effects of the U.S. war on Iraq and terrorism fears on travel as well as the slow economy. It said Walt Disney World in Florida, was particularly vulnerable because it attracted more visitors from foreign countries.
Disney repeated those concerns in the filing with securities regulators late on Thursday, which outlined terms and risk factors to a debt offering, and it also noted the potential for SARS, or Severe Acute Respiratory Syndrome, to disrupt business.
"Current concerns relating to severe acute respiratory syndrome, or 'SARS,' and uncertainty surrounding the transmission of this illness, may also contribute to a reluctance to travel," Disney said.
"This tends to adversely affect our resort locations, and in particular our largest resort location, Walt Disney World, where our guests tend to travel from farther away and stay longer."
Disney's main parks are Florida's Disney World and Disneyland in California, and it has interests in parks in Paris, Tokyo and a Hong Kong park that is being built.
Asian travel has declined sharply as SARS, which has no cure so far, has infected more than 3,000 worldwide, primarily in China and Hong Kong, and killing 114.
Disney's ABC television network also faces higher costs and lower advertising due to the war on Iraq, the company said.
Disney: SARS May Worsen Theme Parks Slump
Friday April 11, 1:20 pm ET
LOS ANGELES (Reuters) - Fear of SARS, the pneumonia-like illness sweeping Asia, could deliver another blow to already slumping visits to Walt Disney World, No. 1 theme park operator Walt Disney Co. told securities regulators.
Burbank, California-based Disney recently cut its profit target for 2003, citing the effects of the U.S. war on Iraq and terrorism fears on travel as well as the slow economy. It said Walt Disney World in Florida, was particularly vulnerable because it attracted more visitors from foreign countries.
Disney repeated those concerns in the filing with securities regulators late on Thursday, which outlined terms and risk factors to a debt offering, and it also noted the potential for SARS, or Severe Acute Respiratory Syndrome, to disrupt business.
"Current concerns relating to severe acute respiratory syndrome, or 'SARS,' and uncertainty surrounding the transmission of this illness, may also contribute to a reluctance to travel," Disney said.
"This tends to adversely affect our resort locations, and in particular our largest resort location, Walt Disney World, where our guests tend to travel from farther away and stay longer."
Disney's main parks are Florida's Disney World and Disneyland in California, and it has interests in parks in Paris, Tokyo and a Hong Kong park that is being built.
Asian travel has declined sharply as SARS, which has no cure so far, has infected more than 3,000 worldwide, primarily in China and Hong Kong, and killing 114.
Disney's ABC television network also faces higher costs and lower advertising due to the war on Iraq, the company said.