Disney reports lower park revenues in Q3

In reporting its third quarter financial results (PDF Link) today, the Walt Disney Company said that revenues from its Parks and Resorts segment fell 9% year-over-year to $2.8 billion, while operating income decreased 19% to $521 million. The company blamed the lower income on decreases at its Walt Disney World Resort, Disney Vacation Club properties, and Disneyland Paris, despite the shift of the Easter holiday from the second quarter in 2008 to the third quarter of 2009.

The reduction in operating income from Walt Disney World was said to have been primarily due to decreased guest spending and lower corporate alliance income, but that was partially offset by cost-cutting measures. Decreased consumer spending was attributable to lower average daily hotel room rates and by lower average ticket prices, which include the impact of promotions such as the Buy 4, Get 3 Free program. Lower operating income at Disney Vacation Club
was primarily due to higher per unit cost of sales, while lower numbers for Disneyland Paris reflected decreased guest spending due to lower average ticket prices and decreased food, beverage, and merchandise spending, as well as reduced hotel occupancy.

"While a tough global economy impacted our performance in the quarter, we remain encouraged by the relative strength of our business," said Disney's president and CEO Robert A. Iger. "That strength is the result of Disney's combination of strong brands, consistent business strategy and the steps we've taken to make our businesses more efficient without sacrificing quality."