The Walt Disney Company just had its Q3 earnings call, and while the company may be in a “slowdown” in terms of theme park financial results, Disney is sure that they will be able to make up their losses in the future.
©The Walt Disney Company
During the Q3 call, both Bob Iger, the CEO of The Walt Disney Company, and Hugh Johnston, the CFO of The Walt Disney Company, addressed shareholders. They shared that the company had a 2% revenue growth in Q3, but during this, they said that they saw attendance flatten in the theme park this quarter, and they expect it to be similar in the next couple of quarters. They referred to this as a bit of a slowdown, but it is being offset by the entertainment business. While attendance might be down in the park, Disney has a plan to help bring revenue up more.
While talking about theme park attendance, Johnston said that the IP in the parks is strong and does attract a strong audience, and due to this they saw a slight moderation in demand.
©Disney
If the IP is strong in the parks, this is good news for Disney, as they have teased more IP expansion throughout both Disney World and Disneyland, along with adding more IP on their future cruise ships.
©Disney
Disney World could see the addition of Indiana Jones and Encanto in Animal Kingdom as the re-imagining of DinoLand U.S.A. takes place. The “Beyond Big Thunder Mountain” project has the potential for Coco and a Disney Villains-themed land. Though, currently, Disney hasn’t shared exactly what’s coming to Magic Kingdom and Animal Kingdom.
Concept art of potential Magic Kingdom expansion including ‘Coco’ and Villains
Over on the West Coast, DisneylandForward is in the process of adding even more to the Disneyland Resort and could feature the IP of Frozen, Tangled, and Avatar.
©Disney Concept Art for DisneylandForward
Disney Cruise Line is adding four more ships to its fleet. The Disney Wish gave us a taste of what more IP could look like on the high seas, and it seems like the trend will not stop with the Disney Wish, as the Disney Treasure, Disney Destiny, and Disney Adventure seem to be full of IP compared to the original four ships.
©Disney
Speaking of Disney Cruise Line, the Disney Treasure will set sail later this year, and the Disney Destiny next year. With this news, it was shared that “cruise ships tend to pay back very quickly, so we certainly feel positive about those investments.”
©Disney
Iger was asked about Disney’s deal with the NBA. While the deal does not kick in next year, it will kick in a year later and there is one more year on the current deal. Disney has the NBA finals for 12 more years, which will help drive significant value. The new deal will emphasize the growing value of women’s sports.
Previously the NBA Experience
Disney’s new movies have been doing well at the box office, and the success of Inside Out 2, along with Deadpool and Wolverine, was discussed. Disney is seeing a growth in consumption and popularity of their offerings.
Inside Out 2
Overall, Johnston said that they feel really good about the company’s investments in the experiences business. He also stated that although they can’t give long-term guidance, they would not make these investments if they did not expect them to drive growth.
Magic Kingdom
We will have to wait and see what happens, but it seems like both Iger and Johnston are confident in the company’s ability to earn more profits. We will have even more news this weekend as D23 takes place, and we can expect a lot of big announcements, especially about the future of the theme parks. Keep following along with Disney Food Blog for all the latest Disney news and updates!
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