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

Aug 07, 2019 in "The Walt Disney Company"

Posted: Wednesday August 7, 2019 8:59am ET by WDWMAGIC Staff

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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networkproOct 23, 2019

I can easily see shortly after opening that it be re-purposed to an upcharged Starwars Adventure for a few hours instead of a Hotel stay experience. Its not a cruise liner.

ImperfectPixieOct 23, 2019

Yeah, well I have a 13-year-old who tries to posit opinion as fact on a near daily basis.

The_JobuOct 23, 2019

You have to purchase your ticket through them, or a site connected to them.

Rich BrownnOct 23, 2019

My understanding is they still don't require you've seen the movie. They have a "verified" logo but you can still post "unverified" reviews.

SirwalterraleighOct 23, 2019

I don’t know whether to cry or wind my watch...

ImperfectPixieOct 23, 2019

I think I know what you're driving at...and I wouldn't necessarily say it's that people can or can't be wrong in their opinions, but that they can absolutely be 100% wrong in how they express them and/or attempt to force them on others. EDIT: Just want to clarify that opinions based on falsehoods don't even qualify as a valid opinion at all, and thus invalidate anything the person with the "opinion" is trying to say to begin with.

SirwalterraleighOct 22, 2019

No...it was just bad timing on my part. The notion that people aren’t wrong in their opinions...on a shockingly increasing trajectory...is a problem in our time

bartholomr4Oct 22, 2019

Thats your opinion!

ImperfectPixieOct 22, 2019

And that last line you added just invalidated everything you said before that. Opinions cannot be right or wrong as they have no basis in fact.

The_JobuOct 22, 2019

They do now. It's from Capt Marvel protection.

Rich BrownnOct 22, 2019

It also got seriously good reviews as well though.

Rich BrownnOct 22, 2019

Rotten Tomatoes also doesn't verify you've actually seen the movie, so there is a lot of trolling there

SirwalterraleighOct 22, 2019

That’s a very good stance on this... I hope it becomes “contagious” around here And it’s safe to say that 40-75% of opinions ARE wrong on any contentious topic...in the end.

Minnesota disney fanOct 22, 2019

LOL, I've always wanted to say that quote, but was afraid too! Thanks a bunch:)