Earlier this week The Walt Disney Company released its quarterly earnings report and, while the company still had a decent showing overall, Disney missed analysts' overall expectations for the quarter, which led to some after hours stock price fluctuations that made more than a few investors a little nervous.
Still, while things might have sputtered a little bit for the company as a whole, the Parks and Resorts division is still doing pretty well, with Disney confirming that they actually saw some positive results from this business segment during this past quarter (which ended June 30). However, there is one big catch, which we'll get to, after the good news...
1. Revenue is up thanks to increasing prices around the resort
When it comes to Disney's key metrics with regards to the Parks and Resorts division, it's looking like a bit of a mixed bag when it comes to this most recent quarter.
The good news is that Parks and Resorts revenues for the quarter increased 6% to $5.2 billion and segment operating income increased 15% to $1.3 billion. Operating income growth for the quarter was due to increases across key operations. Disney also confirmed that per-person spending is up once again thanks to increases in ticket prices, more spending opportunities in the form of upcharge events and higher daily hotel room rates.
This is certainly interesting, as it seems like Disney's current strategy of continuously hiking prices is still continuing to pay off for them, as they haven't found an upper ceiling for these price increases yet, which means guests will likely continue to see the cost of their vacations increase steadily, even in spite of some of the deep discounts Disney has been offering in recent months.
2. Attendance is basiacally stagnant
Unfortunately, though it looks like guests at Disney are spending a lot of money, guest levels don't seem to be increasing this quarter the same way they did last year. According to CF News 13, attendance for the quarter was essentially flat with last year, rising just one percent.
Though this might be disappointing news for Disney, it is not altogether unexpected, as we're still over a year away from the opening of Star Wars: Galaxy's Edge, which means many guests who make regular trips to Walt Disney World could be saving up to make a trip next year to see what is probably the most-anticipated new land at a Disney park, ever.
Fortunately, it looks like Disney may be calling on their annual passholders to try and boost up their numbers before the end of the year, specifically by offering special free events and removing blockout dates to try and entice annual passholders to visit the parks a few more times this year. In addition, Toy Story Land is now open, which may provide a small boost for the next quarter (which began the day after Toy Story Land officially opened)