Disney shared their third-quarter earnings report today, and the news for Parks and Experiences looks promising. Revenue has risen 70% since the third quarter of last year. The pandemic travel slump is clearly over.
Disney partially attributes the increase in revenue to the launch of Genie and Lightning Lane and denies that it is solely due to “pent-up demand” due to lack of travel during the COVID-19 pandemic.
When discussing the Parks and Experiences, it’s important to take into account that this includes more than just theme park earnings. Parks and Experiences encompass theme Park tickets, merchandise, and food sales, yes, but also includes merchandise from other outlets and Disney Cruise Line and Adventures By Disney.
In a press release, the Walt Disney Company stated that a reduction in discounts offered at Walt Disney World offset “unfavorable attendance mix at Disneyland Resort.”
In today’s earnings call, CEO Bob Chapek credited the domestic parks with the revenue increase. He added that Disney Cruise Line and international park’s attendance is not yet back to pre-pandemic levels. He also said that Disney Parks and Experiences benefited from 3 key milestones reached by the company in this quarter: Guardians of the Galaxy finally opened this quarter, as did Avengers Campus at Disneyland Paris. The company also added a new ship, Disney Wish, to the Disney Cruise Line fleet.
Chapek spoke of the transformation of Disneyland Paris, saying, “I couldn’t be more proud of the Resort’s ongoing transformation.” He expects this to greatly increase revenue for the next quarter, explaining that the Park was only open for 3 days of the 2022 third quarter.
The overall tone was joyous and hopeful when Chapek informed listeners that bringing back “experiences guests love” like parades, stage shows, and fireworks will only increase revenue going forward.
When questioned about whether they were satisfied with Parks and Experiences increases this quarter, both Bob Chapek and Christine McCarthy, CFO, were in agreement that they were very pleased. They hinted that annual passes may come back soon to increase attendance and per capita expenditure in the parks, but no confirmation has been given at this time.
This is very positive news for fans of Disney Parks. Things will only get better from here! We expect to see many more positive changes and new additions in the next quarter.