The Walt Disney Company has posted its fiscal 2024 third-quarter results, and a soft quarter in the Experiences division led to nearly flat results on the revenue side and a decrease in operating income when compared to last year. The Experiences (theme parks, cruises, and consumer products) side of the business recorded $8.386 billion in revenue for the quarter ending June 29, 2024, which was an increase of 2% over last year. However, operating income was down 3% for the quarter to $2.222 billion.
At the domestic parks, Disney says that a 6% decrease in operating income was due to:
- Higher costs driven by inflation, increased technology spending and new guest offerings, partially offset by the comparison to depreciation in the prior-year quarter related to the closure of Star Wars: Galactic Starcruiser and cost-saving initiatives
- Guest spending growth attributable to increases in per capita guest spending at our cruise line
and theme parks and higher per room spending at our resorts
Internationally, Disney says that the following metrics led to a 5% dip in revenue, but a 2% increase in operating income:
- Higher volumes attributable to increases in attendance and occupied room nights
- Guest spending growth due to higher per room spending at our resorts
- An increase in costs due to new guest offerings, inflation and increased depreciation
Disney released the following executive statement about the Experiences division:
At our industry-leading Experiences segment, we continue to make progress on new strategic initiatives to deepen our relationship with our fans, create innovative and immersive experiences, and turbocharge long-term growth. Despite recent economic uncertainty that is impacting consumers, we remain confident about the long-term opportunities before us. Our Experiences portfolio is increasingly diversified, with more balanced contributions to segment operating income compared to pre-pandemic. We continue to significantly outperform pre-pandemic levels, with both segment revenue and operating income in Q3 FY24 exceeding Q3 FY19 levels by nearly 30%. We have an incredibly experienced management team at the helm who have successfully navigated our business through a myriad of operating environments, and our recent investments in technology and data analytics enable us to better manage fluctuations in guest demand while also continuing to prioritize the guest experience.
We continue to expand our U.S. and international offerings, both on land and at sea, with new experiences and attractions that will increase capacity. At Disneyland Resort, the Anaheim City Council recently gave final approval to our DisneylandForward initiative – the first step in our expansion plans at Walt’s original theme park. Our Cruise Line will debut the Disney Treasure and Disney Adventure in FY25 and the Disney Destiny in FY26. The Disney Adventure will be based out of Singapore, and we also recently announced an agreement with the Oriental Land Company to bring our Cruise Line to Japan, further expanding our Experiences segment across Asia.
We are reaching consumers in innovative new ways – such as working with Epic Games to bring together Disney’s beloved brands and franchises with the hugely popular Fortnite in a transformational new games and entertainment universe. Disney’s licensing games business is the largest in the world, and through our collaboration with Epic Games, we are leaning into this area even more, capitalizing on a transformative industry-wide shift toward converged gaming ecosystems.
This weekend, we will gather in Anaheim for D23: The Ultimate Disney Fan Event, where we will showcase more of the many exciting things we have in store from across the company, including upcoming attractions and experiences. No one else but Disney could bring together tens of thousands of fans from around the world for an event like D23, because no one else has such a unique and powerful connection with fans built on 100 years of storytelling excellence and unparalleled innovation.
Core to that century of success is the dynamic way we leverage our world-class creativity across multiple business and revenue streams to fuel long-term value. The unmatched creative power of our film and television studios, the wide appeal of our brands and franchises, and the innovative ways we bring our stories to life in our theme parks and experiences is distinctly Disney in a world of entertainment that is crowded with choices. We are confident in our ability to continue driving earnings growth through unique and powerful assets that complement one another and collectively enable the company to perform. Our progress in the quarter is a result of the strength of this portfolio, which best positions us to achieve even greater success over the long term.
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!