Disney’s 3rd fiscal quarter finished on July 2 and the report is now in; the revenue for Disney Parks and Resorts has increased 6% to 4.4 billion dollars and the operating profit is up 8% to 994 million dollars. However, the US parks which include Walt Disney World, Disneyland and Disney California Adventure has seen a 4% drop in attendance.
The 3rd quarter is from April to July, there are a number of reasons why park attendance may have been down including some of the areas being closed to rebuild new lands, the Easter Holiday didn’t fall in the time frame, the 60th Anniversary winding down, and the fact that to make up for lost revenue Disney has raised admission, food and other costs.
Christine McCarthy, Disney’s chief financial officer said it was due to timing.
Shanghai Disney, which has been open since June has already had 1 million visitors according to Bob Iger, Disney’s CEO.
Disney’s cable networks including ESPN rose just a small 1%, however Disney bought 33% of BAMtach which was formed by Major League Baseball for 2 Billion dollars. This will give Disney the push to provide direct to customer streaming services, Disney will begin streaming service of EPSN this year. The service will complement ESPN with events such as Major League Baseball, National Hockey League, tennis and college sports.
We will see what next quarter shows, if it continues to show the same numbers we may be looking at discounts and offers we haven’t seen since 2009.
How do you see this playing out? Does the lower park attendance surprise you? Comment below!
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