![]() Given that inflation has slowed down lately, Disney fans might get tired of this trend, which could result in lower visitation volumes. Disney has been charging more for everything in its parks, blaming it on prices going up. In fact, international parks recorded a massive 94% growth in revenues to $1.53 billion.ĭespite this success, I remain cautious regarding Disney’s pricing strategy. Higher revenues from Parks were primarily driven by higher visitation volumes at Shanghai Disney Resort and Hong Kong Disneyland Resort. The segment’s operating profit also grew by 11% to $2.43 billion. In the third quarter, revenues from the Parks, Experiences, and Products segment grew by 13% to $8.33 billion. On a brighter note, Disney’s theme parks are doing well. Fun Times at Disney Parks, but Visitation Volumes Could Decline People are ditching regular TV for alternative options, a trend that is particularly concerning given that Linear Networks comprise around 30% of Disney’s total revenues. and Canada), the situation is not looking good for the long term. Sadly, following such a steep decline in revenues, the segment also posted an operating loss of $87 million compared to an operating income of $166 million last year.Ĭonsequently, while Disney still makes money from its legacy assets (mainly from the U.S. Internationally, the situation is even worse, with revenues dropping by 20% to $1.2 billion, with similar headwinds adversely impacting its performance. These numbers clearly underscore the overall weakness the broadcasting and cable industry is experiencing. Lower advertising revenue was, in turn, caused by softer average viewership and lower rates. and Canada, revenues fell by 4% to $5.5 billion due to weaker results at ABC and Disney’s own channels, both of which posted lower advertising revenue. The segment’s operating profit also declined by a worrisome 23% to $1.89 billion. In the latest numbers from its most recent third-quarter results, Disney’s revenues from this segment fell by 7% to $6.69 billion. Even today, Disney’s Linear Networks segment continues to serve as a robust cash cow for the company.īut times are changing, and fewer people are interested in traditional TV. The Slow Fade of Old-School Disney Showsĭisney’s legacy TV channels, like ESPN, Disney Channel, ABC, and National Geographic, used to be a big moneymaker for the company. With its underwhelming performance likely to persist, I remain neutral on the stock. Over the past year, the company has underperformed notably, with a decline of 15%, in stark contrast to the S&P 500 ( SPX) and the communications sector, which gained approximately 18% and 37%, respectively. ![]() Despite its powerhouse status, owning Disney+, ESPN, National Geographic, and iconic parks, Disney shares have plummeted to levels not seen since early 2014. Disney’s ( NYSE:DIS) stock is at its lowest in nearly a decade.
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