Business

Disney Faces Deepening Trouble

abalcazar / iStock Unreleased via Getty Images

The Walt Disney Company, plagued by trouble in its streaming business, TV networks, and studios, now faces problems at its mighty theme parks. According to The Wall Street Journal, “Data from a travel company that tracks line-waiting time at Walt Disney World in Orlando, Fla., shows that the Independence Day weekend was one of the slowest in nearly a decade.” The deep problems CEO Bob Iger faces grow more troubling by the month.

Disney’s stock has been down 50% in the last two years while the market is flat. Iger replaced Bob Chapek in November 2022, but the two-year-old slide covers the period during which Iger restructured Disney.

In the most recently reported quarter, Disney segment operating revenue rose 8% to $21.8 billion. This rise was because of theme parks, the revenue of which rose 17% to $7.8 billion. Operating segment income for Disney was $3.4 billion, down 11%. Theme park operating income rose 25% to $2.2 billion.

Disney described the health of its theme parks by announcing, “The increase in operating results at Disneyland Paris was due to volume growth, which was attributable to higher attendance, and increased guest spending, partially offset by higher costs.” If theme park activity at locations outside Orlando is weak, Disney cannot make up for the problem financially.

Iger has faced challenge after challenge, and the number may have gotten worse.

Sponsored: Find a Qualified Financial Advisor

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.