Disney on Wednesday warned of softness in its theme-park business in the third-quarter.
Disney’s Experience segment, the business unit that houses its theme parks, cruises and consumer products, generated revenues of nearly $8.39 billion and operating income of $2.22 billion in the three-month period. Those results represented a 2% increase and 3% decrease year over year, respectively.
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"Segment revenue growth was impacted by moderation of consumer demand towards the end of Q3 that exceeded our previous expectations," the company said.
For its domestic parks, Disney reported they "decreased modestly" but saw "comparable" attendance and higher per-capita spending. Meanwhile, Disney Cruise Line, Consumer Products and some of its international theme parks notched year-over-year gains, according to the company.
The company said the demand moderation could affect the next few quarters.
"While we are actively monitoring attendance and guest spending and aggressively managing our cost base, we expect Q4 Experiences segment operating income to decline by mid single digits versus the prior year, reflecting these underlying dynamics as well as impacts at Disneyland Paris from a reduction in normal consumer travel due to the Olympics, and some cyclical softening in China," the company said.
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Disney’s two other segments – entertainment and sports – brought $10.58 billion and $4.56 billion in revenue, respectively. Their operating incomes were $1.2 billion and $802 million.
