Bob Iger took to CNBC's Squawk Box this morning for an interview with David Faber from Allen & Company's Sun Valley conference.
Top of the discussion was yesterday's announcement that Iger will remain as Walt Disney Co. CEO through the end of 2026, two years longer than originally expected when he made a shock return to replace Bob Chapek in late 2022.
Iger said that "we're pleased with how much we've accomplished in a short period of time" but was perhaps "unrealistic about transforming the company in two years."
Referring to the transformative work that Iger has been undertaking since his return, he named three key areas of the company that he views as growth businesses - parks and resorts, movie studios, and streaming.
Speaking of the parks, Iger said they are "a tremendous business for us." He continued that he has "Huge optimism for Disney Parks and Resorts. We've invested significantly but the investments we've made over the years are really paying off today. We have opportunities to turbocharge that growth."
Asked about recent attendance declines at Walt Disney World and widespread reporting specifically about low wait times on July 4, Iger said, "Measuring attendance at Disneyworld on July 4 didn't really factor in temperature which is about 100 degrees—and 99% humidity on that day."
Iger elaborated further on post-COVID attendance: "Florida opened up early during COVID. And they created huge demand and didn't have competition because there were a number of other places states that were not open yet. There's a lot more competition today. So against 2022 the state of Florida has been down. We actually track hotel tax revenue across the state, which is publicly a matter of public record. And there are counties in Florida that have been down 6 - 7% recently. We also know that our competitors are discounting in that state. So there are some near-term issues in Florida that I don't think have anything to do with politics and not about pricing either."
Discussing pricing at the parks, Iger says that pricing is not an issue since he addressed it on his return late last year. He said of Walt Disney World, "It's a very, very popular business and product and it's very successful. And, you know, we're not wringing our hands over it. There's some near term issues in Florida as we've talked about, but yeah, pricing is not an issue." Earlier this year, Disney made more lower-priced tickets available at Disneyland, removed parking fees at Walt Disney World resort hotels, removed Park Pass requirements for passholders after 2pm, and added more features to Genie+.
Finally, the discussion turned towards Ron DeSantis and the lawsuit currently underway. Iger commented, "What we've said publicly is that we are concerned that he has decided to retaliate against the company for a position the company took on pending legislation in that state. And frankly, the company was within its right even though I'm not sure it was handled very well. It was within its right to speak up on an issue constitutionally protected right to free speech, and to retaliate against the company in a way that would be harmful to the business was not something that we can sit back and tolerate. And so we have filed a lawsuit to protect our First Amendment rights there and to protect our business."
He described DeSantis' presidential campaign trail comments that Disney is "sexualizing children" as "preposterous and inaccurate."
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