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At the Disney earnings call, it seems that earnings bottomed out for domestic theme parks. Take a look and see why.
Positive Notes
Disney Parks, Experiences and Products Disney Parks, Experiences and Products revenue for the 3rd quarter increased 13% to $8.3 billion. Per the earnings call, this is due to increases at international parks and the Disney Cruise Line.
Increased profits are due to international theme parks and the Disney Cruise Line.
On the earnings call, Disney CEO Bob Iger shared that he believes three businesses will drive the greatest growth in value over the next five years: film studios, parks business and streaming.
Iger says Walt Disney World is still performing well above pre-COVID levels.
What Happened?
Disney announced lower results at domestic theme parks and products. During the earnings call, Disney blamed inflation and the closure of the Galactic Starcruiser at Disney World.
Iger stated, “Lower volumes were due to decreases in occupied room nights and attendance.” In other words, not as many people are going to domestic theme parks or staying at Disney Resorts.
Lower volumes were due to decreases in occupied room nights and attendance.
The Galactic Starcruiser closes at the end of September, but Disney took a $100 Million accelerated depreciation this quarter. There have also been movie flops this quarter including The Haunted Mansion and Indiana Jones.
Remarks
Iger stated that results this quarter reflect unprecedented transformation in restructuring the company, improve efficiencies, and restore creativity.
“In the eight months since my return, these important changes are creating a more cost effective, coordinated, and streamlined approach to our operations that has put us on track to exceed our initial goal of $5.5 billion in savings as well as improved our direct-to-consumer operating income by roughly $1 billion in just three quarters.
While there is still more to do, I’m incredibly confident in Disney’s long-term trajectory because of the work we’ve done, the team we now have in place, and because of Disney’s core foundation of creative excellence and popular brands and franchises.”
In addition, interim CFO Kevin Lansberry announced that today will be the last earnings call using the current structure. It will be interesting to see how they share this information going forward.
Interim CFO Kevin Lansberry announced that today will be the last earnings call using the current structure.
Do you agree with Iger’s plan for the future? Why do you think profits and attendance is down at Disney World? Please share your thoughts in the comments and share this post with a friend.
Share the love!
June
Friday 11th of August 2023
It is a combination of problems - the average middle class family who make up the core business of Disney have both been priced out, made to feel like they are being bled for every penny they can possibly get from them- perks gone and everything an extra charge and further alienated by the woke agenda being pushed at every turn.
Rob H
Wednesday 9th of August 2023
Just like the Bud Light fiasco, Disney is not focused on its prime customer base. Plus going woke does lead to going broke as you disrespect your average potential customer.
Scott Robinson
Wednesday 9th of August 2023
Bob refuses to acknowledge the core reasons why Disney is failing which is that they’ve alienated their audience and continue to do so.
Suzy
Wednesday 9th of August 2023
I am from uk a DVc member we have just spent nearly 4 weeks at wdw . We have annual passes . How much did we spend at wdw in 4 weeks ? About $ 900 We did a character breakfast (cape may) on my granddaughters birthday ( Larry our server was amazing ) and Ohana breakfast a meal at rainforest and space 220 lOUNGE the rest of our meals sadly cos we love eating out were either made in the room or sandwiches we made to take to the park buying food from Walmart . Normal people can no longer afford to eat at restaurants in the parks and the counter service is just too expensive to justify what you get ! As a retired economist if Disney reduced the cost or offered substantial food discounts to people staying on property their sales would increase . The same applies in the shops ! My two little granddaughters brought their Princess Araura dresses with them ! Cost in u k from on line Disney store $32 in the parks $80+ !! It’s all too expensive . Genie + vs free fastpass leaves a sour taste ! Come on Disney encourage on site hotel stays by discounting everything ! Normal people want to come to wdw. But want to not feel they are being taken for a financial ride !
Sandra
Wednesday 9th of August 2023
It's called...you priced out the middle class and that's who run the parks. We will always spend more money than the wealthy. That's why we are middle class..lol. Families can't afford to go very often anymore! We are going other places now. We are waiting on Epic Universe at Universal! Their fastpass system is so much better. Hopefully Disney will eventually see less services more money doesn't work. Do they really think it has anything to do with the Starcruiser...wow. That was the biggest fail ever. Like anyone could afford that. Ridiculous!