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Disney warned Wednesday that its theme park business is expecting weakness in the third quarter.
Disney’s Experiences division, which includes theme parks, cruises and consumer products, generated revenue of about $8.39 billion and operating profit of $2.22 billion in the three months, up 2% and down 3%, respectively, from a year ago.
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“Segment revenue growth was impacted by a stronger-than-weathering consumer demand toward the end of the third quarter,” the company said.
February 9, 2023, Walt Disney Studios, Burbank, California. (Photographer: Eric Thayer/Bloomberg via Getty Images/Getty Images)
Disney reported a “slight decline” in attendance but “similar” attendance and increased per capita spending at its domestic parks, while Disney Cruise Line, Consumer Products and some international parks saw year-over-year increases, the company said.
The company said the decline in demand could have an impact in the coming quarters.
“While we are actively monitoring attendance and guest spending and aggressively managing our cost base, we expect Experiences operating income to be down mid-single digits year-over-year in the fourth quarter, reflecting these fundamental trends, as well as the impact of reduced normal consumer travel due to the Olympics and a softening Chinese economic cycle at Disneyland Paris,” the company said.
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Disney’s other two divisions, Entertainment and Sports, brought in revenue of $10.58 billion and $4.56 billion, respectively. Operating income was $1.2 billion and $802 million, respectively.
