Disney CFO forecasts normalization in theme park attendance
Disney is starting to see a normalization in theme park attendance from the post-COVID highs, Disney CFO Hugh Johnston said during this mornings earnings call.
“As it relates to demand, while consumers continue to travel in record numbers, and we are still seeing healthy demand, we are seeing some evidence of a global moderation from peak post COVID travel,” he said.
“People still have a strong desire to basically go on vacation and come to see us,” he added.
This was mentioned as the forecast on how the next quarter earnings for the Disney Experiences section of the company is expected to match last year’s operating income and not increase.
The Third Quarter forecast for the division is expected to roughly be comparable to the prior year due to the timing of media and tech expenses, noncomparable items in the prior year of consumer products and the timing of Easter.
In addition, the quarter will also include higher wage expenses and preopening expenses related to the Disney Treasure and Disney Adventure cruise ships, as well as Disney Cruise Line’s new island Disney’s Lookout Key.
“In terms of attendance, look, what we’re basically communicating is relative to the post COVID highs, things are tending to normalize,” Johnston said.
This Second Quarter’s Parks and Experience operating income increased by 13% year over and and Consumer Products increased by 7%. This is due to to strong strong international parks growth driven by Hong Kong Disneyland resort, while Walt Disney World and the cruise business both contributed to domestic growth.
At Disneyland, despite growing attendance and per capita spend, results declined year over year due to cost inflation including from higher labor expenses.
