Yesterday, Walt Disney Co’s CFO, Jay Rasulo announced that as of Fall 2010, the Walt Disney Company will no longer be offering discounted park tickets to help increase attendance at it’s theme parks and plans to restore pre-recession prices.
In the statement during a conference call with stock analysts, Mr. Rasulo stated “We are determined and confident that we can take our pricing back to normalized levels.”
The reason why Disney is so confident in the pricing is because in the 2nd fiscal quarter, the Walt Disney’s Company’s profits rose 55% , thanks to the successes of its movie studio and Tim Burton’s “Alice in Wonderland” which has thus far earned the company $962 million. This is also increased the company’s total revenue to $8.6 Billion, up 6%.
Despite the promising outlook from the Disney Studios, and the upcoming summer blockbusters “Prince of Persia” and “Toy Story 3”, the theme parks are still continuing to have problems showing a profit. Profits from the parks and resorts fell 12% last quarter, bringing in $150 million as opposed to last years 2nd quarter total of $171 million. While the attendance has been lagging at the US parks, there is some good news though. Guest spending has been starting to rise. The parks are showing a increase of 5% of guest spending while the hotels are reporting a 8% increase.
For more on this story, please go to Disney Earnings: Disney profits surge thanks to movie blockbuster, but parks still struggle | TheDailyDisney.com from OrlandoSentinel.com