The Walt Disney Company has released its earnings report for the third quarter of fiscal year 2024, bringing a mix of news for Disney enthusiasts. While the Parks and Experiences segment experienced a slight boost in revenue, it also faced a dip in operating income.
Overall, Disney’s total revenue climbed to $23.2 billion, up from $22.3 billion compared to the same quarter last year. “Our performance in Q3 demonstrates progress across our creative studios, streaming, sports, and Experiences businesses,” said Robert A. Iger, Disney’s CEO. Notably, the company achieved profitability across its combined streaming businesses, a milestone hit a quarter ahead of schedule. However, Disney is expecting softer demand in its domestic parks to continue, potentially causing further impacts in the next quarters.
For the Parks and Experiences segment, revenue rose by 2%, reaching $8.39 billion. This was bolstered by increased guest spending at domestic parks, cruise lines, and resorts. However, the segment’s operating income fell by 3%, attributed to rising costs due to inflation, additional tech spending, and new guest offerings. The closure of the costly Star Wars: Galactic Starcruiser experience also contributed to this decline.
Domestically, Parks and Experiences saw a 3% revenue growth to $5.82 billion, but operating income dropped by 6% due to heightened operational costs. Internationally, revenue rose by 5% to $1.60 billion, with an operating income increase of 2%. This was aided by higher attendance and room occupancy rates, though offset by inflation and larger costs from newer guest experiences.
Looking forward, Disney anticipates a mid-single-digit decline in operating income for the fourth quarter of 2024, factoring in reduced travel to Disneyland Paris due to the Olympics and softening trends in China. On a positive note, Disney Cruise Line continues to see strong demand despite pre-launch expenses for the new Disney Adventure and Disney Treasure ships.
We’d love to hear your thoughts on Disney’s latest financials and the future of its Parks and Experiences! Share your insights in the comments and join the conversation!
Source: WDWMAGIC Staff
