Revenue and income continued to surge at The Walt Disney Company's theme park segment last quarter, with the company reporting double-digit percentage increases.
For the three-month period ending July 1, 2023, the Disney Parks, Experiences and Products segment reported a 13% increase in revenue, to $8.33 billion. That helped drive an 11% jump in operating income, to $2.43 billion.
International parks led the way, with a 94% increase in revenue for the quarter, to $1.53 billion. Operating income at the international parks was $428 million - an improvement from a $64 million loss during the same period in 2022. Shanghai Disneyland was open for the entire quarter this year, after being closed for all but three days of the quarter in 2022.
At the domestic parks, revenue was up just 4% year over year, to $5.65 billion for the quarter. Operating income was down overall at the U.S. parks and Disney Cruise Line, to $1.44 billion - a 13% drop from the same period in 2022.
The problem, as with Universal, was Florida. Attendance was down at the Walt Disney World Resort, but it was up at Disneyland and the Disney Cruise Line. Nevertheless, higher costs across the board led to the year-over-year decline in income for the quarter. Disney also took $100 million in accelerated depreciation related to the planned closure of Star Wars: Galactic Starcruiser this quarter, with another $150 million in accelerated depreciation for the Starcruiser coming in the next quarter, as well.
"We saw softening performance at Walt Disney World from the prior year, coming off our highly successful 50th anniversary celebration," CEO Bob Iger said. "Also, as post-Covid pent up demand continues to level off in Florida, local tax data shows evidence of some softening in several major Florida tourism markets, and the strong dollar is expected to continue tapping down international visitation to the state.
"However, Walt Disney World is still performing well above pre-Covid levels - 21% higher in revenue and 29% higher in operating income compared to fiscal 2019, adjusting for Starcruiser accelerated depreciation."
As for the Disney Cruise Line, Iger said that the company's five ships are booked at 98% of capacity for the fourth quarter of Disney's fiscal year. Iger also said that the new Disney Treasure would come online in the company's 2025 fiscal year, which would target its debut in the final three months of 2024.
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It truly is sad what is happening in Florida and the economic impacts it is creating.
I am sure Universal hopes it turns around by 2025 (good luck) because they are currently placing a $6 Billion dollar bet on Florida.
I don’t know how many Orlando visitors do what we do on our trips (visit both WDW and Universal), but if there are, they could be holding off on their next trip until Epic Universe opens.
Regardless, Universal will see a large increase in revenue in ticket sales alone. The price of multi day tickets and Park-to-park tickets will likely increase by 50% or more to account for the new gate.
#Rave5 6 billion?
Epic, resorts and infrastructure including rail transit. It’s in the billions.
Whatever people think it’s costing doesn’t change the point, they are placing a big bet on Florida and need it to pay off. The State’s current political climate is not headed in a positive direction for that investment.
Alex,I’ll take Dumbest State Governors for a $1000 - what state governor ruined its key tourism industry ?
So, I just want to get this straight because people argue that... Wokeness in Disney's movies and politics don't impact results. But conservative politics, does impact results. Got it. I highly doubt people are making their travel decisions based on politics...or literally no conservative would ever visit the state of California.
I know I dont hang around the same people as you all perhaps but I dont think Ron DeSantis is keeping people away, or at least in significant numbers. That's with me living in a highly liberal, blue as the Cookie Monster city. The main reasons I've heard from folks is:
-pent up demand is waning
-it's extremely hot in the summer and traveling from oct-mar is more enjoyable
The main reason: it's expensive and combined with inflation is not viable for a lot of folks. Cost.
Y’all. Not everything has to do with Rom DeSantis. The vast majority of people don’t think about stuff like that when choosing which state to Vacation in. And I live in a solidly blue state , so you can’t say it’s just because of who I’m surrounded by. Not everything traces back to “republican bad”
Everyone who is screaming “It’s not DeSantis and his politics” feel free to explain to me why attendance is UP at all the other Disney parks, as well as with DCL, besides WDW. And that’s not factoring in that Universal and Sea World Florida are down as well as are future convention bookings.
That’s one heck of a coincidence I’d say.
But, sure, if it makes you feel better to say that it’s not driven by his decisions as Governor, knock yourself out.
I'm sure the state of Florida has an impact, but far more impactful I'd wager is that the high cost and declining quality of an Orlando theme park vacation is leading fewer and fewer people to consider it an annual destination. If many visitors switch to doing a WDW trip one or twice in a five year period rather than doing one every year, it's going to be interesting to see how the parks react. Will they build more attractions, try more special events, offer better discounts, or roll back some of the unpopular changes that were made following the pandemic closure? I suppose only time will tell.
I love WDW, I truly do but my Disneyland trip in March made me realize I'd pick there over WDW again, just much easier in many ways.
TheOldCream... Disneyland is doing well because it's surrounded by 20 million people within an hours drive. In addition major metro areas such as the Bay Area, Vegas, San Diego, and Phoenix are within a reasonable drive. That's not Orlando which depends on people flying into the city from further away which is costly. D-Land gets a lot folks who visit and then go home for the day or just gas up their car and go for a few days as opposed to getting a pricey flight and long hotel stay. Same applies for Universal Hollywood.
I think you’re missing the impact - it’s the 30% “you’re not like me” group that are cheerled by the governor - ask AB after bud light was slammed for being drunk by somebody not like them
Plus Florida is getting so damn hot in the Summer.... We went last year on the first week of Sept and we melted....
AJ: "I'm sure the state of Florida has an impact, but far more impactful I'd wager is that the high cost and declining quality of an Orlando theme park vacation is leading fewer and fewer people to consider it an annual destination. If many visitors switch to doing a WDW trip one or twice in a five year period rather than doing one every year, it's going to be interesting to see how the parks react."
Me: Are you saying this about an "Orlando theme park vacation" or "a WDW trip"? The first one would seem to include all of the Central Florida operators, while the second would be specific to Disney/
I have to agree Ron Desantis plays no role in the slight decrease at Disney or Orlando. No international traveler cares about your insane politics when planning a trip. I may hate everything about the conservative party right now but that doesn't change the fact that Orlando is still my favorite place due to all the amazing attractions, restaurants, and frankly amazing staff!
I would bet the biggest impact would be the fact that Orlando has been like walking on the surface of the sun and the high cost of flights / hotels. We never go to Florida in the summer cause its actually nice here up north during this time and its too hot anyways! I'm sure we can expect a much busier winter since a lot of people who didn't go in the summer who typically would I bet will go in winter instead.
Francis24 nails it! And none of the "biggest impact(s)" listed are unique to one park operation.
I think the year after Covid was a moment everyone wanted to get out and do something fun. That was the 2023 effect. Now in 2024 we are going back to normal crowds, maybe a bit lower due to inflation worldwide due to companies abusing covid to raise prices and the war in Ukraine resulting in higher energy prices in EU.
I think pricing has a lot to do with the decline at WDW. I am going for a long weekend and the ticket costs are insane.
2 days for 2 people at WDW is costing over $650 - that is before Genie+ or any lightning lanes.
Plus - it has become too complicated - having to check at 7am to get on a virtual queue. I will do it because I am not planning on going back anytime soon. This parent only trip will hit up Holloween Horror Night at Universal, Food and Wine at Epcot and Hollywood Studios to try all the new stuff.
After that... no more Orlando until after EPIC universe opens.
The cost and frustation vs fun.... is just not as compelling an argument as it was.
>>Wokeness in Disney's movies and politics don't impact results. But conservative politics, does impact results.
I can tell you as an international visitor looking to come for Epic Universe, I'm wondering if its going to be safe to do so. I'm not part of the LGBTQI community, but I'm pretty sure that community has already written it off - and they're pretty well known to be a group that spends a lot on trips.
>>The vast majority of people don’t think about stuff like that when choosing which state to Vacation in. And I live in a solidly blue state
The vast majority don't have to. For a well known high spending group, they now do, as should something unexpected happen their life may depend on it.
@Chad H -- In principal I agree with you but as a married gay man I haven't written off the US quite just yet. Not even Florida.
It's true that our community does its research and avoids certain area but we have no worries about the US. Even Florida or Texas. I would be more then happy to visit Austin or San Antonio. The places we do avoid are countries like the UAE or Jamaica since they ban our existence so I have no interest in spending money in a country like that and they are openly super homophobic.
I can't speak for everyone but I can tell you that me and my friend group have no worries about the US and we have no plans to stop visiting Orlando just because of some idiot currently in power!
TH, re-reading my post it appears I abridged it too much, so here's what I'm trying to say: Regardless of destination, any sort of Orlando theme park vacation has increased in cost, so I imagine many who used to consider it an annual trip may switch to only going once every two or three years. With lower satisfaction at WDW, I also wouldn't be surprised if instead of Disney being included in every trip, it starts only being included when there's something new there or it's been several trips since the last visit. As such, WDW will be impacted not just by fewer people planning Florida trips, but also by not being an automatic inclusion in a Florida trip due to dissatisfaction with the experience it offers.
Conservatives have always vacationed in Blue states and vise versa. As others have pointed out, DL caters more to locals, while WDW goes more for out of state tourists. Is there crossover? Of course. But, that basic principle still exists. "Post-COVID Revenge Travel" is subsiding more generally. That "revenge" period coincided with the biggest anniversary in WDW history. As both things dissipate, you're left with rising prices everywhere you look, new attractions that some find underwhelming, and an upcoming Orlando theme park that at least some folks are "holding out" for. I don't think WDW itself has hit its "ticket price ceiling" yet, but I can understand people needing to prioritize other things right now.
It is simple folks........the cost! I came over for 2 weeks end of April 22 and was amazed by the price increases of everything since Covid. I returned 6 months later and it was even worse. For the first time ever in over 20 years everything in Florida was more expensive than the UK. As a comparison, the price of a pair of jeans went up 40% for exactly the same jeans at the same place in 6 months and a repeat meal at the same restaurant was 35% more. Florida is pricing itself out of the market and no longer offers value for money for either Americans, Brits or other overseas visitors. I will not be returning any time soon and I have visited at least 25 times in the last 18 years.
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Hmmmmm I wonder what could be causing people to stay away from Florida…..I guess it’s a mystery that just can’t be explained.