Add a lackluster visit to the theme park to the long list of challenges facing Disney’s new CEO.
Josh D’Amaro, who took over Disney in March, publicly faced Wall Street for the first time on Wednesday, reporting quarterly earnings that beat analysts’ expectations. Investors liked what they heard, especially in terms of growth in streaming profits; Disney shares rose 8 percent in morning trading, helped by a broader Dow Jones industrial average rally.
Still, Disney reported a rare drop in attendance at its Florida and California theme parks. The decrease was small – only 1 percent compared to the same quarter last year. But its parks are closely watched as a bellwether for consumer confidence. When a core metric like attendance weakens, it can be a sign that people are pessimistic about the economy.
Are higher gas prices (including airlines) causing fewer pilgrimages to Mickey? Have Disney’s own price increases dampened demand? Are there fewer travelers from abroad, part of a decline in international tourism across the United States since President Trump returned to office? Is there a shortage of new rides?
Mr. D’Amaro and Hugh Johnston, Disney’s chief financial officer, blamed international travel and competition in Florida for Epic Universe, a new NBCUniversal theme park.
“We recognize that domestic participation is an important metric for investors and we are focused on that as well,” Mr. Johnston to analysts on a conference call. “The good news is that, looking ahead, we expect growth to improve in the back half and our forward bookings are very encouraging as we look ahead to the rest of the year.”
Disney has offered big discounts to keep the turnstiles clicking. A summer special allows children ages 3 to 9 to visit Disneyland in California on a “park hopper” ticket for $50 (compared to $168 to $279 under standard fares).
In an avuncular tone — more brand chat than corporate pep rally — Mr. D’Amaro used the call to lay out his long-term vision for the company. It’s not that different from the course set by his predecessor, Robert A. Iger: Invest in creativity, increase consumer engagement, use new technology to “power our storytelling” and make more money doing it.
“Our immediate priority is disciplined execution,” said Mr. D’Amaro.
There was no mention of the Trump administration’s recent order to review all station licenses of ABC, which is owned by Disney. The Federal Communications Commission has said the complaint is related to an investigation into ABC’s diversity and inclusion policies, but it arrived after Mr. Trump had demanded that the network fire its late-night host, Jimmy Kimmel.
