Disney Parks Revenue for the Third Quarter of 2023 Increased 13% to $8.3 Billion
Ahead of it’s investors earnings call Disney released its third quarter financial report. Disney Parks, Experiences and Products revenues for the quarter increased 13% to $8.3 billion. The segment operating income increased 11% to 2.4 billion. The growth largely due to the performance of international parks. Domestic parks had a slightly lower performance overall.
Disney cited a higher overall operational cost, as a result of Shanghai Disney being open for the entirety of the third quarter as opposed to 3 days in the prior year’s quarter. The closure from last year’s quarter stemming from Covid-19. Hong Kong Disneyland also had similar differences from the previous yea. Hong Kong was open for 72 days compared to 54 days in the prior year quarter.
Related: Disney Earnings Grew in the Third Quarter of 2023 Due to Company Restructuring
Disney Parks Revenue experienced a decline in domestic parks and results, partly resulting from lower unit sales of the Disney Vacation Club. This decline was offset by increases at Disney Cruise Line.
Bob Iger cited “softer” revenues in the call. The report details, “Lower operating income at our domestic parks and resorts was attributable to a decrease at Walt Disney World Resort, while results at Disneyland Resort were up modestly compared to the prior-year quarter. The decrease in Disney Parks Revenue at Walt Disney World Resort was primarily due to higher costs and lower volumes.”
“The increase in costs was attributable to inflation and accelerated depreciation related to the planned closure of Star Wars: Galactic Starcruiser. Lower volumes were due to decreases in occupied room nights and attendance.”
“At Disneyland Resort, higher attendance and increased guest spending were largely offset by higher costs driven by inflation. Guest spending growth was primarily due to an increase in average ticket prices.”
A decrease at Disney merchandise licensing business stemmed from lower revenue from merchandise based on Star Wars, Toy Story and Avengers. Overall Disney is showing stronger than anticipated performance in both Shanghai and Hong Kong, with slight decreases in domestic parks, but Iger remained confident in the potential for this segment of the company.
Stay tuned for more updates and news from the Walt Disney Company’s Third Quarter 2023 Financial Results Conference Call.
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