Two Disneys: Booming U.S. Parks, Sluggish Asia

Disney’s parks and cruise segment continued to fuel the majority of profits in the third quarter, but there was a major decline among international parks. The experiences sector — which includes parks, cruises, and consumer products — reported a 20% surge in operating income in the third quarter, bolstered by a 27% increase from its domestic business. Meanwhile, international park operating income fell 13%, weighed down by consumer softness at its Shanghai and Hong Kong parks. Disney expects that softness to continue into the fourth quarter. “We're certainly not immune to the macros, and in particular fuel obviously touches the entire economy,” Disney Chief Financial Officer Hugh Johnston said during an August 5 earnings call. “As an example, we have seen a weaker consumer in Asia in our parks.” The trend mirrors broader concerns around domestic travel in China. Hilton, for instance, saw a 2.2% decline in revenue per