Disneyland is Lone Disney Park to Post Losses in Q2

Disneyland is Lone Disney Park to Post Losses in Q2

The Walt Disney Company reported its second-quarter earnings earlier this morning. Before the call, the company announced that its parks and experiences division grew revenue to $8.4 billion, a 10% increase over last year. Domestic parks saw a 7% increase in while international parks soared with a 29% bump. One park did not share in the wealth, however. Disneyland posted losses, due in part to inflation and lower hotel occupancy. Attendance in that park was up (as were ticket prices), but that wasn’t enough to offset rising costs. Could another price hike be in the works?

Sleeping Beauty Castle in Disneyland

Disney Experiences’ positive international performance was boosted by Hong Kong Disneyland, which recently opened World of Frozen. The Disney Cruise Line also turned a profit thanks to increased ticket prices. That revenue helped offset higher costs caused by inflation.

Disney did temper the good vibes by saying they expect lower numbers in Q3 before they rebound at the end of the year.

Overall, the company seems pleased with its recent performance:

“When you consider all of our businesses as a whole from Entertainment to Sports to Experiences, it’s clear that no one has what Disney has. The turnaround and growth initiatives we set in motion last year have continued to yield positive results, and we are executing against our ambitious strategic priorities with both speed and determination.”

Bob Iger, Chief Executive Officer of The Walt Disney Company

There is reason for optimism. In addition to the Parks and Experiences profits, the streaming side of the business is finally seeing positive results. For the first time, the entertainment side of Disney’s streaming was profitable in Q2. Once again, the company did temper those numbers when they said they expected a downtick in Q3. On the sports side, an ESPN+ tile will be added to Disney+ by the end of the year.