Chief Bob Iger says ‘slowdown’ in experiences segment offset by box office success of films such as ‘Inside Out 2′
Chief Bob Iger says ‘slowdown’ in experiences segment offset by box office success of films such as ‘Inside Out 2′ Inside Out 2, with characters Joy and Anxiety, was a big success as Disney's movie business returned to form but theme parks have had a poor year.
Photograph: Disneyboosted Walt Disney’s third-quarter earnings and revived confidence in the Pixar animation studio, but the company warned that slowing consumer demand at its US theme parks could continue into next year. Theme parks have been Disney’s growth engine since pandemic restrictions began to lift. In the 2023 fiscal year, the parks business unit contributed 70 per cent of Disney’s entire operating profit, providing a financial backstop as it lost money on its streaming efforts and as its traditional television networks declined. But Disney warned on Wednesday that revenues and operating income from its parks unit were hit by a “moderation of consumer demand ... that exceeded our previous expectations” towards the end of the June quarter. Quarterly operating profit for Disney’s parks business unit fell 3 per cent compared with a year ago, to $2.2 billion . Sales of consumer products dropped 5 per cent at the theme parks from the same period a year earlier. In response, the group said it planned to “aggressively manage” costs at the parks.In your 30s? It’s time to get serious about your pension“The lower income consumer is feeling a bit of stress, the higher income consumer is travelling internationally a bit more,” Disney chief executive Bob Iger told investors on a call. Mr Iger described it as “a bit of a slowdown that is being more than offset by the entertainment business”.Mr Iger praised the progress in the entertainment businesses, which had been suffering from a dearth of box office hits and losses at its streaming services. “What we’ve been seeing with streaming is significant success driven largely by the success of our creativity” he said, listing television shows such ashas taken in more than $1.5 billion at the global box office since its June 14th release, making it the highest-grossing animated film of all time. That performance, along with improvement at its Disney+ and Hulu streaming services, helped push operating income at Disney’s entertainment division to $1.2 billion in the fiscal third quarter, up from $408 million a year earlier. Together Disney’s three streaming services – Disney+, ESPN+ and Hulu – reported an operating profit of $47 million in the quarter, compared with a $512 million operating loss a year ago. After a scarcity of breakout hits at the box office in 2022 and 2023 – including by Pixar and Marvel – Mr Iger last year called for a focus on quality over quantity. Marvel’s Deadpool and Wolverine, released on July 26th, has been a breakout hit with nearly $900 million in box office revenues ahead of its third weekend.Disney’s diluted earnings of $1.39 a share were well ahead of Wall Street expectations of $1.19 and up from $1.03 a year earlier. The company raised its full-year target for adjusted earnings per share. – Copyright The Financial Times Limited 2024Kellie Harrington: ‘The next chapter is going to be my life chapter. It’s for me and Mandy’Olympics Day 12: Irish in action and best of the rest as Rhasidat Adeleke goes in 400m semi-finalLATEST STORIES
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