The theme parks business remains a bright spot for the The Walt Disney Co., which reported its third quarter earnings on Wednesday.
What You Need To Know
- Disney's theme parks business reported $8.3 billion in revenue in the third quarter
- Although revenue was up in the division, Disney World in Florida experienced a slowdown
- Disney CEO Bob Iger said the lower attendance comes as post COVID pent-up demand levels off
The company’s Parks, Experiences and Products division reported $8.3 billion in revenue, up 13%, and an operating income of $2.43 billion—despite a slowdown at Walt Disney World.
Disney’s international parks such as Shanghai Disney were the biggest contributor to growth and, but domestically, revenue was up just 4%. Disneyland Resort in California saw modest increases. But in Florida, it was a different story.
Disney World saw lower attendance and a decrease in occupied rooms in the quarter.
“We saw softer performance at Walt Disney World from the prior year coming off our highly successful 50th anniversary celebration,” Disney CEO Bob Iger said in a call with investors.
But Iger also cited a drop in post-COVID pent-up demand among the reasons for the slowdown in Florida.
“Local tax data shows evidence of some softening in several major Florida tourism markets, and the strong dollar is expected to continue tapping down international visitation to the state,” Iger said.
The problem is not isolated to Disney World. Other Central Florida parks, including Universal Orlando and SeaWorld recently reported lower attendance at its parks.
However, Disney says its Florida parks are still performing above pre-COVID levels, with revenue 29% higher than 2019.
Disney Cruise Line, which is also part of the division, also performed well in the quarter, as more people took cruises. The cruise line is expanding its fleet and a new ship, the Disney Treasure, is expected to debut next year.
“Our park experience segment has an overall impressive streak and will be a key growth engine for the company, even as we navigate the cycle the comes with operating this business,” Iger said.