Disney’s theme parks segment has reported a 13 percent increase in revenue to $8.3 billion in the third quarter of this year, despite lower results at Walt Disney World in Florida.
The Walt Disney Company also reported an 11 percent rise in operating income to $2.4bn due to growth at its international parks and resorts, particularly Shanghai Disney Resort. Operating income was partially offset by lower results at Disney’s US destinations.
In Q3 2023, Shanghai Disney Resort was open for the entire quarter, compared to just three days in the prior-year quarter due to the pandemic. Increases at Hong Kong Disneyland were due to the park being open for 72 days in Q3 2023 compared to 54 days in Q3 2022.
“Our Asia parks have been doing exceptionally well, reinforcing a clear opportunity for continued growth,” Disney CEO Bob Iger said in a post-earnings call.
“Both Shanghai Disney Resort and Hong Kong Disneyland have experienced stronger than expected recoveries from the pandemic – and in Q3 they both grew meaningfully in revenue, operating income, and attendance.”
Lower operating income at the US parks has been put down to higher costs and a decline in Disney World attendance.
Although attendance was up at Disneyland in California, higher costs at Disney World were attributable to accelerated depreciated related to the planned closure of Star Wars: Galactic Starcruiser.
Disney’s parks business to grow
Despite the results at Disney World, Iger said the resort is “still performing well above pre-Covid levels – 21 percent higher in revenue and 29 percent higher in operating income compared to FY2019, adjusting for Starcruiser accelerated depreciation”.
Since Iger returned as CEO, Disney has been completely restructured, with the company cutting 7,000 jobs to save $5.5 billion in costs.
“In the eight months since I returned, we’ve undertaken an unprecedented transformation at Disney, and this quarter’s earnings reflect some of what we have accomplished,” Iger said.
Disney’s parks and experiences division “has had an impressive streak”, he added. The company is “making numerous investments globally to grow our parks business over the next five years, and I’m very optimistic about the future of this business over the long-term”.
Lead image credit: Paul Hiffmeyer
