Disney Parks Saw a Slip in Attendance Last Quarter, Though the Company Remains Optimistic
While overall Bob Iger and The Walt Disney Company delivered a strong Q3 earnings report this morning and in fact beat Wall Street’s projections, there were also some troubling results.
Perhaps most notably, Disney Parks struggled in Q3 of 2024. While the division’s revenue increased 2% year over year to $8.4 billion, Disney Parks’ operating profit fell 3% to $2.2 billion.
In their earnings report, Disney blamed the results on “moderation of consumer demand” that exceeded their previous expectations. Essentially, the parks were not as busy as Disney expected.
“Reflecting these underlying dynamics as well as impacts at Disneyland Paris from a reduction in normal consumer travel due to the Olympics, and some cyclical softening in China,” Disney wrote.
Disney Remains Optimistic About the Parks
While Disney’s parks division failed to reach projections, Bob Iger and Disney remain confident. Considering the economic conditions, the company was satisfied with the results.
“Despite recent economic uncertainty that is impacting consumers, we remain confident about the long-term opportunities before us,” Iger and CFO Hugh Johnston said.
NBC News
The Disney Experiences unit, they say is “increasingly diversified,” and it continues to “significantly outperform pre-pandemic levels.”
The Disney Parks Have Been the Company’s Bedrock
During a difficult 2023 for Disney at the box office, Disney Parks carried the company forward. Now, the roles have reversed (at least temporarily).
Image: Pixar
Disney Entertainment, fueled by the success of Inside Out 2, helped Disney beat Wall Street expectations for its earnings. The parks, meanwhile, were an area of concern.
Disneyland Park
While Bob Iger assured investors that Disney’s diverse portfolio could handle a slight underperformance by its parks, the company also warned that the aforementioned “demand moderation” could “impact the next few quarters.” To this end, Disney has lowered its attendance projections into early 2025.
All Eyes on D23
With D23: The Ultimate Fan Experience just around the corner, Disney has a golden opportunity to energize its theme parks.
Photo: D23
Saturday night, Josh D’Amaro, Chairman of Disney Experiences, will host a panel that looks at the future of the Disney Parks. With big announcements expected, today’s earnings report may just be a temporary bump in the road for the Disney theme parks.
Thanks for visiting MickeyBlog.com! Want to go to Disney? For a FREE quote on your next Disney vacation, please fill out the form below. One of the agents from MickeyTravels, a Diamond-level Authorized Disney Vacation Planner, will be in touch soon! Also, Thanks for reading!
