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Disney’s parks and experiences division has reported US$8.3bn in revenue for Q3 2023, despite rising operational costs and lower guest attendance at the Disney World resort in Florida
Lauren Heath-Jones | Planet Attractions | 11 Aug 2023
Disney World saw a drop in visitor numbers and an increase in operation costs caused by inflation Credit: Disney World
Disney’s parks and experiences division has reported a 13% increase in revenue, to US$8.3bn (€7.6bn, £6.5bn), for the third quarter of 2023, despite reporting lower guest attendance at the Disney World resort in Florida, US.
The company also reported an 11% increase in operating income, to US$2.4bn (€2.2bn, £1.9bn), which Disney has attributed to the growth of its international parks and resorts, particularly its Shanghai Disney Resort in China.
For the first time since the Covid-19 pandemic, Shanghai Disney Resort remained open throughout the entire quarter, compared to just three days during the same period in 2022. Similarly, Hong Kong Disneyland was open for 72 days in Q3 2023, compared to just 54 days in Q3 2022.
“Our Asia parks have been doing exceptionally well, reinforcing a clear opportunity for continued growth,” said Disney CEO Bob Iger.
“Both Shanghai Disney Resort and Hong Kong Disneyland have experienced stronger than expected recoveries from the pandemic – and in Q3 they both grew meaningfully in revenue, operating income and attendance.”
Shanghai Disney Resort remained open throughout Q3 2023, compared to just three days during the same period in 2022 CREDIT: SHANGHAI DISNEY RESORT
The operating income has been offset by lower results at Disney’s US resorts, with the Disneyland Resort in Anaheim, California, experiencing higher attendance and increased guest spending, both of which have been offset by higher costs, while the increase in guest spending has been partially attributed to an increase in ticket prices.
The Disney World resort, meanwhile, has seen a decline in visitor attendance and higher operating costs, due to both inflation and accelerated depreciation related to the planned closure of Star Wars: Galactic Starcruiser.
Iger said that, despite the lower results, the Disney World resort is “still performing well above pre-Covid levels – 21% higher in revenue and 29% higher in operating income compared to FY2019, adjusting for Starcruiser accelerated depreciation .”
Since his return to Disney in November 2022, Iger has restored creativity to the heart of the business and overseen the complete restructuring of the company, cutting more than 7,000 jobs to save US$5.5bn (€5bn, £4.4bn) in costs.
“In the eight months since I returned, we’ve undertaken an unprecedented transformation at Disney, and this quarter’s earnings reflect some of what we have accomplished,” he said.
“Our parks and experiences segment overall has had an impressive streak.
“Moving forward, I believe three businesses will drive the greatest growth and value creation over the next five years. They are our film studios, our parks business and streaming – all of which are inextricably linked to our brands and franchises.”
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