Disney reported its Q3 2024 earnings on Tuesday, and while the company posted a win in its streaming division, its namesake theme park experience didn’t have the same results.
The company reported a 3.3% drop in 3Q operating profit to $2.22 billion in its Experiences segments, which include its domestic and overseas theme parks.
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Specifically, US Parks operating income decreased 6%, although operating income for International Parks increased 2% and total revenue for Experiences increased 2%.
“We expect to see weak revenue from the parks in the 4th quarter,” Disney Chief Financial Officer Hugh Johnston said on a call with investors. “It’s really just a couple of quarters. I don’t think I’d call it lengthy, but just a couple of quarters with likely similar results.”
Disney blamed inflation and higher costs inside the parks, though Johnston noted that consumers are still “reluctant to cancel vacations” and that there may not be cause for alarm just yet.
“We’ve seen a slight softening in demand, I certainly wouldn’t call it a significant change,” Johnston said. “I would call it a bit of a slowdown, which is more than offset by the entertainment business.”
In October 2023, Disney raised prices for single-day and multi-day tickets to Disneyland, California and Walt Disney World, Florida.
Single-day ticket prices rose nearly 9% at Disneyland, while Disney World annual tickets rose 10% to level.
“We are constantly adding new, innovative attractions and entertainment to our parks, and with our wide range of pricing options, the value of a theme park visit is reflected in the unique experiences that only Disney can offer,” a Disney spokesperson said. then extract, per CNBC.
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Overall, Disney’s operating income rose 19% to $4.225 billion in the third quarter, thanks to strong wins in the company’s Entertainment segment, which includes streaming and Disney+.
Also Tuesday, Disney announced in a press release that it is raising prices on its streaming platforms (Disney+, Hulu, ESPN+) by about $1 to $2 more per month.
Disney was down more than 4.4% in the 24 hours Wednesday afternoon.