The Walt Disney Company reported lower operating income at its international theme park operations in the latest quarter of the year.
This was due to higher pre-opening costs at the new Shanghai Disney Resort and lower attendance and higher operating costs at Disneyland Paris.
“These decreases were partially offset by cost efficiency initiatives as well as higher volumes and guest spending at Hong Kong Disneyland Resort,” the company said.
Disney’s parks and resorts revenues for the three months to July 2 rose by 6% to $4.4 billion, with operating income up by 8% to $994 million.
The entertainment giant’s US theme parks and cruise line were responsible for the rise in the growth in its third quarter.
However, the results were adversely impacted by the absence of the Easter holiday, which occurred in the third quarter of the last year compared to the second quarter of the current year, according to Disney.
“Higher operating income at our domestic operations was due to guest spending growth and lower costs, partially offset by lower volumes,” the company said.
“The increase in guest spending was driven by higher average ticket prices at our theme parks and cruise line.
“Lower costs reflected decreases in labour and marketing costs from efficiency initiatives. Costs also benefited from lower infrastructure costs due to timing and a decrease in fuel costs.
“These decreases were partially offset by higher depreciation, labour and other cost inflation and costs associated with new attractions. The decrease in volumes was due to lower attendance, partially offset by higher occupied room nights.”
The parent company reported overall third quarter net profits up $114 million to $2.6 billion over the same period last year.
Chairman and chief executive, Robert Iger, said: “Our results are evidence that our asset mix is strong, as is our ability to execute in ways that enhance the Disney brand and create value for our shareholders while we invest for future growth.”
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