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Earlier this morning, The Walt Disney Company released earnings results for the third quarter. The Experiences division saw a 2% uptick in revenue to $8.386 billion, but operating income was down year-over-year by 3% to $2.222 billion. The operating income side of the business was dragged down by the domestic theme parks after that segment recorded a 6% slide compared to last year despite a 3% increase in revenue. International theme parks and consumer products were both up 2% in operating income this year.
Disney says that the “demand moderation” (read: lower crowds) that they saw in the Q3 results could “impact the next few quarters”. Disney says that they are “actively monitoring attendance
and guest spending and aggressively managing our cost base”, but say that Q4 operating income will likely record a higher year-over-year decline than what we just saw in Q3.
At our Experiences segment, we expect that the demand moderation we saw in our domestic businesses in Q3 could impact the next few quarters. While we are actively monitoring attendance and guest spending and aggressively managing our cost base, we expect Q4 Experiences segment operating income to decline by mid single digits versus the prior year, 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.
In prepared executive statements, Disney says that the recent results are due to “recent economic uncertainty that is impacting consumers”, but they say that they remain confident about the long-term opportunities in the Experiences division.
Disney said that they “continue to significantly outperform pre-pandemic levels, with both segment revenue and operating income in Q3 FY24 exceeding Q3 FY19 levels by nearly 30%”.
For full comments and a closer look at the earnings, check out our article below!
As always, keep checking back with us here at BlogMickey.com as we continue to bring you the latest news, photos, and info from around the Disney Parks!