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Disney announced its third-quarter 2024 results on Tuesday. Although the company saw success in its streaming division, results were not the same at its namesake theme parks.
The company reported a 3.3% decline in third-quarter operating profit to $2.22 billion in its Experiences division, which includes domestic and international theme parks.
Related: Disney World and Disneyland are raising ticket prices. Find out how much and when the increase will take effect.
In particular, operating profit for the U.S. Parks division declined 6%, although International Parks' operating profit increased 2% and Experiences' total revenue increased 2%.
“We expect park revenue to be flat in the fourth quarter,” Disney CFO Hugh Johnston said in a conference call with investors. “It's really just a couple of quarters. I wouldn't call it a drawn-out period, but just a couple of quarters of probably similar results.”
Disney blamed inflation and rising costs at the parks, although Johnston noted that consumers are still “hesitant to cancel their vacations” and that there may not be any reason to sound the alarm just yet.
“We've seen a slight softening in demand, I certainly wouldn't call it a significant change,” Johnston said. “I would just call it a slight slowdown that's more than offset by the entertainment business.”
In October 2023, Disney increased prices for single and multi-day tickets at Disneyland in California and Walt Disney World in Florida.
At Disneyland, day pass prices rose by almost 9%, while annual passes for Disney World became 10% more expensive per category.
“We are constantly adding new, innovative attractions and entertainment to our parks, and with our wide range of pricing options, the value of a theme park visit is reflected in the unique experiences that only Disney can offer,” a Disney spokesperson said in a statement to CNBC at the time.
Related: Report: Disney food prices have risen 60% in 10 years
Overall, Disney's third-quarter operating profit rose 19% to $4.225 billion, thanks to strong performance in the company's entertainment segment, which includes streaming and Disney+.
Also on Tuesday, Disney announced in a press release that it is increasing prices on its streaming platforms (Disney+, Hulu, ESPN+) by another approximately one to two dollars per month.
Disney lost over 4.4 percent within 24 hours on Wednesday afternoon.
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