At the Disney earnings call, it seems that earnings bottomed out for domestic theme parks. Take a look and see why.
Positive Notes
Disney Parks, Experiences and Products Disney Parks, Experiences and Products revenue for the 3rd quarter increased 13% to $8.3 billion. Per the earnings call, this is due to increases at international parks and the Disney Cruise Line.
Increased profits are due to international theme parks and the Disney Cruise Line.
On the earnings call, Disney CEO Bob Iger shared that he believes three businesses will drive the greatest growth in value over the next five years: film studios, parks business and streaming.
Iger says Walt Disney World is still performing well above pre-COVID levels.
What Happened?
Disney announced lower results at domestic theme parks and products. During the earnings call, Disney blamed inflation and the closure of the Galactic Starcruiser at Disney World.
Iger stated, “Lower volumes were due to decreases in occupied room nights and attendance.” In other words, not as many people are going to domestic theme parks or staying at Disney Resorts.
Lower volumes were due to decreases in occupied room nights and attendance.
The Galactic Starcruiser closes at the end of September, but Disney took a $100 Million accelerated depreciation this quarter. There have also been movie flops this quarter including The Haunted Mansion and Indiana Jones.
Remarks
Iger stated that results this quarter reflect unprecedented transformation in restructuring the company, improve efficiencies, and restore creativity.
“In the eight months since my return, these important changes are creating a more cost effective, coordinated, and streamlined approach to our operations that has put us on track to exceed our initial goal of $5.5 billion in savings as well as improved our direct-to-consumer operating income by roughly $1 billion in just three quarters.
While there is still more to do, I’m incredibly confident in Disney’s long-term trajectory because of the work we’ve done, the team we now have in place, and because of Disney’s core foundation of creative excellence and popular brands and franchises.”
In addition, interim CFO Kevin Lansberry announced that today will be the last earnings call using the current structure. It will be interesting to see how they share this information going forward.
Interim CFO Kevin Lansberry announced that today will be the last earnings call using the current structure.
Do you agree with Iger’s plan for the future? Why do you think profits and attendance is down at Disney World? Please share your thoughts in the comments and share this post with a friend.
Discover more from KennythePirate.com
Subscribe to get the latest posts sent to your email.
June
Friday 11th of August 2023
It is a combination of problems - the average middle class family who make up the core business of Disney have both been priced out, made to feel like they are being bled for every penny they can possibly get from them- perks gone and everything an extra charge and further alienated by the woke agenda being pushed at every turn.
Rob H
Wednesday 9th of August 2023
Just like the Bud Light fiasco, Disney is not focused on its prime customer base. Plus going woke does lead to going broke as you disrespect your average potential customer.
Scott Robinson
Wednesday 9th of August 2023
Bob refuses to acknowledge the core reasons why Disney is failing which is that they’ve alienated their audience and continue to do so.
Discover more from KennythePirate.com
Subscribe now to keep reading and get access to the full archive.
Continue reading