Theme Parks Fail Disney at the Worst Possible Time
It was the turnstile click heard around the world. Disney (NYSE: DIS) posted disappointing financial results on Tuesday afternoon, and one of its biggest shortcomings came at the theme park level. The media giant's domestic gated attractions experienced a rare decline in overall visitors despite benefiting from the timing of the Easter holiday and the Disneyland opening of its most anticipated expansion in 20 years.
The good news is that revenue for Disney's parks, experiences, and products division did move higher for the period, and the 7% increase was higher than the 5% gain for the segment through the first six months of Disney's fiscal year. The world's leading theme park operator was able to grow its revenue despite the drop-off in attendance by generating higher ticketing, hotel, and in-park revenue. It's disappointing to hear that fewer people visited Disneyland and Disney World despite having the full two weeks of the Easter holiday relative to last year when the two weeks were split between the fiscal second and third quarters. Some of the circumstances were beyond Disney's control, but other barriers were there by design to limit crowds during the peak summer travel season.
Image source: Disney.
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