Get All Access for $5/mo

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.

Opinions expressed by Entrepreneur contributors are their own.

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.

Emily Rella

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business Culture

Stop Blaming Remote Work for Your Productivity Woes — 5 Signs of a Productive Office Culture

It doesn't matter if you work from a cubicle, couch or cafe — if the (remote) office culture is broken, productivity will suffer.

Business News

These Companies Offer the Best Work-Life Balance, According to Employees

The ranking is based on Glassdoor ratings and reviews.

Starting a Business

Nearly 50% of America's Workforce Has a Secondary Source of Income or Side Hustle. Here Are 7 Steps You Should Take to Create Lasting Value for Yours.

Today's entrepreneurs have the opportunity to generate long-lasting supplementary income if they take these steps.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.