Walt Disney Company Third Quarter 2019 Earnings report shows a decline in domestic parks income

Aug 07, 2019 in "The Walt Disney Company"

The Walt Disney Company released its third quarter 2019 earnings report yesterday, showing an overall increase of income for the Parks, Experiences and Products segment.

The increase was attributed to the performance of the consumer products business and Disneyland Paris.

Operating income at the domestic parks saw a decrease, along with attendance. In comments to investors, Bob Iger suggested that at Disneyland the decline was due to Annual Passholders being blocked out during the opening of Star Wars Galaxy's Edge, and at Walt Disney World guests were delaying their visits until Star Wars Galaxy's Edge opens.

Higher tickets pricing and and increase in food and beverage spending saw guest spending grow.

You can view the full report online, and the Parks, Experiences and Products segment report below. Visit the WDWMAGIC Forums for more discussion on the earnings report.

Parks, Experiences and Products revenues for the quarter increased 7% to $6.6 billion and segment operating income increased 4% to $1.7 billion. Operating income growth for the quarter was due to increases at our consumer products businesses and Disneyland Paris, partially offset by a decrease at our domestic parks and resorts. Results included a benefit from a shift in the timing of the Easter holiday.
In the current year, the entire Easter holiday fell in the third quarter, while the third quarter of the prior year included only one week of the Easter holiday. The increase at our consumer products business was due to growth at our merchandise licensing and retail businesses. Growth at merchandise licensing was primarily due to higher revenue from merchandise based on Toy Story, partially offset by a decrease from Star Wars merchandise. The increase at our retail business was due to higher comparable store sales and online revenue.
Higher operating income at Disneyland Paris was primarily due to higher average ticket prices, partially offset by labor and other cost inflation and lower attendance.
The decrease in operating income at our domestic parks and resorts was due to higher costs and lower volume, partially offset by increased average per capita guest spending. Higher costs were driven by labor and other cost inflation and expenses associated with Star Wars: Galaxy’s Edge, which opened at Disneyland Resort on May 31. The decrease in volume was due to lower attendance, partially offset by higher occupied room nights. Guest spending growth was primarily due to higher average ticket prices and increased food, beverage and merchandise spending.
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Article Posted: Aug 07, 2019 / 8:59am ET