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Disney CEO still bullish on China despite Shanghai park slump

Date:2018-11-11 21:17Source: ReadingNumber: Times

During a call to discuss financial results for the fourth fiscal quarter, Walt Disney Company CEO Bob Iger said the comp

During a call to discuss financial results for the fourth fiscal quarter, Walt Disney Company CEO Bob Iger said the company took action to offset the effects of “softness in the tourism market” at Shanghai Disney Resort.

“We basically put in place some discounting, some lower pricing to continue to drive attendance during what we saw as somewhat of a downturn,” he said in response to an analyst’s question. “But we didn’t necessarily think it was permanent.”

He said the company subsequently scaled back on discounts, to good results.

“I think what we’re seeing in China is maybe a slight reduction in consumer confidence, and that’s having an impact on the business somewhat,” Iger said. “But we still believe very, very, very bullishly in not only the business that we built, but the business that we can continue to invest in.”

“We still feel great about that market for our theme park business,” Iger said.

Shanghai Disney appeared to be a weak link in an otherwise strong quarter. Disney’s parks and resorts segment saw revenue increase 9% to more than USD 5 billion. Operating income for the segment rose 11% to USD 829 million. The results, along with studio entertainment, fueled the company’s overall performance: Revenue jumped 12% to USD 14.3 billion, with net income up 33% to USD 2.3 billion.

     

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