Disney Issues Warning for Theme Parks Upon Earnings Results: 'Bit of a Slowdown' Overall, Disney's operating income was up 19% to $4.225 billion in Q3, thanks to wins in the company's Entertainment segment, which includes streaming and Disney+.
By Emily Rella Edited by Melissa Malamut
Key Takeaways
- Disney reported its Q3 2024 earnings this week and said its parks division may be flat "for a few quarters."
- The company is blaming inflation and higher costs inside the parks.
- "I would just call this a bit of a slowdown that's being more than offset by the entertainment business," said Disney Chief Financial Officer Hugh Johnston.
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Disney reported its Q3 2024 earnings on Tuesday, and though the company saw wins in its streaming division, its namesake theme park experiences didn't have the same results.
The company reported an operating income decrease in Q3 of 3.3% to $2.22 billion in its Experiences segments, which includes its theme parks both domestically and overseas.
Related: Disney World and Disneyland Are Hiking Ticket Prices. Here's How Much and When It Goes Into Effect.
Operating income for the Parks division in the U.S., specifically, was down 6% though operating income for International Parks was up 2% and overall revenue for Experiences was up 2%.
"We expect to see a flattish revenue number in Q4 coming out of the parks," said Disney Chief Financial Officer Hugh Johnston on a call with investors. "It's really just a few quarters. I don't think I would refer to it as protracted, but just a couple of quarters of likely similar results."
Disney blamed inflation and higher costs inside the parks, though Johnston noted that consumers are still "reluctant to cancel vacations" and that there might not be a reason to sound the alarm just yet.
"We saw a slight moderation in demand, I certainly wouldn't call it a significant change," Johnston said. "I would just call this a bit of a slowdown that's being more than offset by the entertainment business."
In October 2023, Disney raised prices for single and multi-day tickets at Disneyland in California and Walt Disney World in Florida.
Single-day ticket prices increased by nearly 9% at Disneyland, while Disney World annual passes increased by 10% per tier.
"We are constantly adding new, innovative attractions and entertainment to our parks and, with our broad array of pricing options, the value of a theme park visit is reflected in the unique experiences that only Disney can offer," a Disney spokesperson said in a statement at the time, per CNBC.
Related: Report: Food Prices At Disney Have Increased 60% in 10 Years
Overall, Disney's operating income was up 19% to $4.225 billion in Q3, thanks to strong wins in the company's Entertainment segment, which includes streaming and Disney+.
Also on Tuesday, Disney announced in a press release that it is raising prices on its streaming platforms (Disney+, Hulu, ESPN+) by around $1 to $2 more a month.
Disney was down over 4.4% in a 24-hour period on Wednesday afternoon.
