China Hong KongLosses at Hong Kong Disneyland mar an otherwise strong Q4 for Disney parks

Disney feels the impact of Hong Kong unrest

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Disney performed strongly in the US but faltered in Hong Kong.
Disney performed strongly in the US but faltered in Hong Kong.

Pro-democracy protests in Hong Kong have had an impact at the turnstiles at Hong Kong Disneyland, Disney CFO Christina McCarthy said during the company's earnings call on Nov. 7.

The park recorded a US$55 million loss of income for the fiscal fourth quarter, a price tag that could increase to US$275 million over the course of the next 12 months if the unrest continues.

"Circumstances in Hong Kong have led to a significant decrease in tourism from China and other parts of Asia and based on the trends we saw in Q4 and what we are seeing so far in Q1, we expect operating income at Hong Kong Disneyland to decline by about $80 million for Q1," Ms McCarthy said.

Domestically, Disney said it is pleased with the performance of its US theme parks. Its strategy to change ticket prices to control crowds "continues to pay off”, Ms McCarthy said.

Parks, Experiences and Products revenue increased 8% in the fourth quarter, to US$6.7 billion. Ms McCarthy said operating income was up 13%, driven by growth at Disneyland on higher guest spending and an income increase at Disney Vacation Club.

Source: Travel Weekly USA


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