It’s undeniable that things are changing at the Disney theme parks — but is it all going the way Disney hopes?
New experiences and spaces have opened at EPCOT, Tiana’s Bayou Adventure is open in Disney World, Fantasy Springs opened at Tokyo DisneySea, and there are plenty of other updates on the way. In its Q3 earnings report for fiscal year 2024, Disney revealed just how its theme parks (and cruise ships and merchandise) have done recently when it comes to finances — so let’s take a look at what’s happening!
Disney Experiences as a Whole
The Disney Experiences division of the Walt Disney Company encompasses the Disney theme parks around the world, Disney Cruise Line, and Disney products. Disney previously shared that the 3rd quarter financials were going to be impacted by a few things, like higher wage expenses, and certain things related to the Disney Treasure, Disney Adventure, and Lookout Cay. So just how did it all shake out?
As a whole, Q3 Experiences revenue increased by 2%. Additionally, the parks segment income dropped 3% year over year due to “moderation of consumer demand” that exceeded the company’s expectations. Additionally, Disney shared they continue to “significantly outperform pre-pandemic levels, with both segment revenue and operating income in Q3 FY24 exceeding Q3 FY19 levels by nearly 30%.
Let’s break things down to see what role some of the parks played in this financial result.
Domestic Parks
Domestic Disney parks had previously seen an increase in operating income (thanks in part to higher average ticket prices). In Q3 of 2024, revenue for the domestic parks increased by 3%, with operating income decreasing by 6%. Still, the company reports $8.3 billion in revenue.
Disney attributes the decrease in operating income domestically to, “Higher costs driven by inflation, increased technology spending and new guest offerings, partially offset by the comparison to depreciation in the prior-year quarter related to the closure of Star Wars: Galactic Starcruiser and cost-saving initiatives.”
And, Disney shared that while results at the “domestic parks decreased modestly in the quarter, attendance was comparable year over year and per capita spending was slightly up.”
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International Disney Parks
When it comes to international parks, Disney shared that revenue is up by 5%, with operating income up 2%. According to Disney, these increases were due to higher attendance and room occupancy, people spending more in the parks, inflation, and increased depreciation.
Keep in mind, though, that Comcast (owners of Universal Studios) also saw parks business decrease by 10.6% in Q2 due to lower attendance at domestic parks, so Disney’s news isn’t that shocking.
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Disney Cruise Line
Disney Cruise Line reported they “continue to see strong demand at Disney Cruise Line,” and that has been reflected in the improved results versus the prior year. They do warn that Q4 fiscal results for cruises will “reflect pre-launch expenses for the Disney Adventure and Disney Treasure.”
People are spending more per capita on Disney Cruise Line as well as the parks, and are spending more per room at the hotels.
There are some BIG updates coming soon to this part of the Walt Disney Company, with some details about 3 NEW ships — the Destiny, the Treasure, and the Adventure — already revealed. We’ll definitely be watching for more updates there!
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Consumer Products
When it comes to consumer products, operating income increased by 2%, with revenue decreasing by 5%. This was also attributed to “higher costs driven by inflation” and “increased technology spending and new guest offerings.”
And there you have it — a look at the financial status of Disney’s theme parks, cruise line, and consumer products. We’ll be watching for more updates, so stay tuned for all the latest.
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Have any of these financial results surprised you? Tell us in the comments.
They are losing money because Disney no longer cares about guests. I know A LOT annual passholders who are cancelling their pass. Part is cost but a big part is the new das pass. I wish the Americans with disabilities assn would have a talk with Disney
Universal is opening a new theme park in 2025, so it makes sense that some people might put their Universal vacation on hold until then. What’s money grubbing Disneys excuse?