Disney’s Q3 2024 Earnings Report: Streaming Wins, Theme Park Challenges
Disney revealed its Q3 2024 earnings report on Tuesday, showcasing successes in its streaming division but facing challenges in its theme park experiences.
The company reported a 3.3% decrease in operating income to $2.22 billion in its Experiences segments, which include its theme parks domestically and internationally. While the Parks division in the U.S. saw a 6% decline in operating income, International Parks experienced a 2% increase, with overall revenue for Experiences up by 2%.
Disney CFO Hugh Johnston addressed concerns about future revenue from the parks during a call with investors, suggesting a possible “flattish” revenue number in Q4. He attributed the slowing growth to inflation and higher costs within the parks, but reassured that consumer demand remained strong.
The company recently raised ticket prices at Disneyland and Disney World, citing ongoing additions and enhancements to the park experience as factors in the price adjustments. Despite these increases, Disney remains confident in the value they offer visitors.
In contrast, Disney’s overall operating income saw a 19% increase to $4.225 billion in Q3, largely thanks to gains in the Entertainment segment, including streaming services like Disney+.
On the same day, Disney announced a price hike for its streaming platforms (Disney+, Hulu, ESPN+), increasing monthly subscription costs by $1 to $2 to continue providing quality content to subscribers.
Following the earnings report, Disney’s stock experienced a 4.4% decline in a 24-hour period, reflecting investor response to the financial results.