In its third quarter 2009 earnings call, The Walt Disney Company today reported a company-wide 7% decline in revenues and 26% decline in profit from the same quarter of 2008. For the Parks and Resorts division, revenue declined 9% and profits 19%.
Lower guest spending continued to plague the theme parks unit--a problem which is driven by the need to offer deep resort discounts in order to maintain a high occupancy level and bouy theme park attendance. Disneyland attendance is reportedly up 10% from the prior year while Walt Disney World attendance saw no change year-to-year.
Overall guest spending at the two US resorts was down a combined 6% from the same quarter last year.
These third quarter losses came despite the Easter holiday falling within the company's fiscal 3Q 2009. The third quarter of 2008 did not benefit from an Easter attendance boost as the holiday fell within the second quarter of '08.
CEO Bob Iger also reported slow sales within the Disney Vacation Club timeshare unit.
Reservations for the fourth quarter 2009 are reportedly ahead of the 2008 pace. However, Disney's 4Q 2009 benefits from an extra week due to a quirk in the fiscal year calendar. According to reporting from the Orlando Sentiel's Jason Garcia, without the benefit of this extra week, 4Q bookings are currently running behind the 2008 pace by 7%.
Additional information: Orlando Sentinel
