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Walt Disney World in Orlando delivered a "softer performance" compared to the past year, CEO Bob Iger revealed in the company's third quarter earnings call. The decline comes amid an ongoing battle with Florida Governor Ron DeSantis.
The governor has been at war with the Mickey Mouse company ever since it publicly condemned his so-called "Don't Say Gay" bill in 2022. DeSantis introduced legislation that banned the discussion of sexual orientation and gender identity in certain grades at Florida schools.
DeSantis and Disney have since been involved in a legal battle as the governor had attempted to wrangle control of the land on which Walt Disney World sits in Florida. Since it first opened the theme park, Disney World operated as a self-governing entity, complete with tax breaks and social privileges known as the Reedy Creek Improvement District.
The governor tried to wrest control of the district from Disney by implementing a self-appointed board called the Central Florida Tourism Oversight District. But Disney has so far resisted those efforts, including doing a deal in February that circumvents DeSantis' handpicked five-person board that was meant to replace Reedy Creek. The deal restricts the new board's powers and essentially allows Disney to remain self-governing.
Disney then sued DeSantis for allegedly punishing the company for its opposition to his "Don't Say Gay" Bill, arguing he violated Disney's First Amendment rights. It also accused the governor of trying to "weaponize government power" in a federal lawsuit it filed in April over his moves to restrict Walt Disney World's self-governing powers.
Bob Iger, The Walt Disney Company's CEO, updated investors about the performance of the Florida theme park during the company's third-quarter financial results call on August 9, without directly mentioning DeSantis or the company's recent disagreements with the governor.
He admitted that Disney had seen a "softer performance" at the theme park from the prior year, since "coming off our highly successful 50th anniversary celebration."
"Also, as post-COVID pent-up demand continues to level off in Florida, local tax data shows evidence of some softening in several major Florida tourism markets and the strong dollar is expected to continue tamping down international visitation to the state," he continued, before assured investors that, "Walt Disney World is still performing well above pre-COVID levels."
Iger said it was performing 21 percent higher in revenue and 29 percent higher in operating income compared to the fiscal year of 2019.
"And following a number of recent changes we've implemented, we continue to see positive guest experience ratings in our theme parks, including Walt Disney World, and positive indicators for guests looking to book future visits," Iger said.
"This includes strong demand for our newly returned annual passes. We're making numerous investments globally to grow our parks business over the next five years and I'm very optimistic about the future of this business over the long term," he added.
Disney's financial reports for the 2023 third financial quarter attributed the decrease to "lower operating income at our domestic parks."
"The decrease at Walt Disney World Resort was primarily due to higher costs and lower volumes," the reports read.
"The increase in costs was attributable to inflation and accelerated depreciation related to the planned closure of Star Wars: Galactic Starcruiser."
About the writer
Shannon Power is a Greek-Australian reporter, but now calls London home. They have worked as across three continents in print, ... Read more