Demand for Disney theme parks moderated in Disney's fiscal Q3, a trend the company expects to continue for the next several quarters. Still, revenue in the Disney Parks, Experiences and Products division grew.
Park attendance was comparable year over year, Disney said, and guest spending was slightly up. During the company's earnings call Wednesday, CFO Hugh Johnston called it a "slight moderation" in demand.
Overall, the parks/experiences division's revenue was up 2% in the quarter, totaling $8.2 billion. Domestic park revenue was up 3% and international park revenue was up 5%; consumer products revenue was down 5%.
Operating income for parks/experiences was down 3%, to $2.3 billion. Domestic park operating income fell 6%, while operating income for international parks and consumer products each grew 2%. Disney attributed the domestic decrease to higher costs caused by inflation and more money spent on technology and new offerings.
Meanwhile, guest spending is up at Disney Cruise Line and at theme parks. The cruise line continues to see "strong demand," Disney said.
According to Johnston, he expects similar results for the next several quarters. Lower-income consumers are feeling some financial stress, he said, while higher-income consumers are traveling internationally more; he expects those trends to continue.
Universal parent company Comcast Corp. recently reported similar results, with a normalization of theme park attendance.