Disney has already had their biggest year at the box office in 2019, and that is before other big releases later in the year. However, in their fiscal third quarter earnings call yesterday, total revenue fell short of the estimate of $21.4 billion, with earnings per share at just $1.35 (over 28% less than expected).
Part of this was due to lower than expected revenues at Disneyland and Walt Disney World due to the increased cost of getting Star Wars: Galaxy’s Edge ready for prime time. Lower than expected guests numbers also played a part although some of these losses were counteracted by those that did attend, paying more for park entry and also spending 10% more per guest on merchandise. The Fox acquisition also played a part in the reduced earnings.
Whilst merchandise from Toy Story 4 helped increase revenue, this was offset by a decrease in sales of Star Wars items.
It will be interesting to see how the rest of the year fares for Disney, with Triple Force Friday coming in early October, the opening of Star Wars: Galaxy’s Edge at Walt Disney World later this month and Frozen 2 & Star Wars: The Rise of Skywalker both opening in December.
You can listen to the earnings call in full here.