The Walt Disney Company has reported a 51% drop in quarterly profits to $1.4 billion, despite revenues rising 33% to $20.2 billion.
Disney’s shares fell 5% in after-hours trading when the firm posted figures that missed analysts’ forecasts.
It comes despite producing blockbuster movie hits including Avengers: Endgame and Toy Story 4.
The entertainment giant acquired the TV and film assets of 21st Century Fox for $71 billion in March.
Disney chairman and chief executive Robert Iger said the third quarter results “reflect our efforts to effectively integrate the 21st Century Fox”.
The theme park division saw a 4% increase in operating income to $1.7 billion in the three months to June 29, with revenue up by 7% to $6.6 billion. This came despite lower attendances at it US attractions which were offset by higher ticket prices and increased spend on food, drink and merchandise.
“Results included a benefit from a shift in the timing of the Easter holiday. In the current year, the entire Easter holiday fell in the third quarter, while the third quarter of the prior year included only one week of the Easter holiday,” the company said.
“Higher operating income at Disneyland Paris was primarily due to higher average ticket prices, partially offset by labour and other cost inflation and lower attendance.
“The decrease in operating income at our domestic parks and resorts was due to higher costs and lower volume, partially offset by increased average per capita guest spending.
“Higher costs were driven by labour and other cost inflation and expenses associated with Star Wars: Galaxy’s Edge, which opened at Disneyland Resort on May 31.
“The decrease in volume was due to lower attendance, partially offset by higher occupied room nights.
“Guest spending growth was primarily due to higher average ticket prices and increased food, beverage and merchandise spending.”
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