Walt Disney Co.’s theme park business saw a small increase in revenue as well as a dip in income in the most recent quarter.
Revenue for the company’s Experience segment rose 2% to $8.3 billion in the third quarter, according to an earnings report released Wednesday. Operating income was down 3% to $2.2 billion.
Disney blamed the weaker results on a “moderation of consumer demand.” That softening demand, notably at Disney’s U.S. parks, “could impact the next few quarters,” the company said.
“While we are actively monitoring attendance and guest spending and aggressively managing our cost base, we expect Q4 Experiences segment operating income to decline by mid-single digits versus the prior year,” chief financial officer Hugh Johnston said in a Q&A after the results.
Disney previously pledged $60 billion to expand and “turbocharge” its parks over the next 10 years.
This week, the company is expected to announce upcoming projects for its parks at its D23 fan convention in Anaheim, Calif. No details were shared during the Q&A.
Disney isn’t the only company seeing a dip in the parks business. Comcast, parent company of Universal theme parks, reported a decline in revenue due to lower attendance. The company is getting ready to open its new Epic Universe theme park next year.
As for the company as a whole, Disney reported a revenue increase of 4% to $23.2 billion.
