Solid 3Q Reported by Disney; No Comment on Contemporary

On Wednesday Disney reported strong performance in the third quarter of its 2008 fiscal year which ended on June 28th.  Additionally, Disney CEO Bob Iger was asked to comment on the mystery building adjacent to Disney's Contemporary Resort.

Overall Disney reported revenue of $9.24 billion up from $9.05 billion a year ago.  Profit was $1.28 billion up from $1.18B in the third quarter of 2007. 

Disney's Parks and Resorts division had a 5 percent increase in revenue to $3.04 billion while income was up 3 percent to $641 million.  Much of the improvement was attributed the performance of Disneyland Paris.

Attendance at Walt Disney World fell by 2% compared to last year, but that was largely attributed to the placement of the Easter holiday period.  In 2007 Easter fell within Disney's fiscal third quarter while in 2008 those earnings were part of Disney's second quarter.  

Hotel bookings were reported to be on pace with the same quarter in '07.  Additionally CFO Thomas Staggs reports that bookings for the remainder of 2008 are currently running better than 2007, and that the increase is not being prompted by abnormally high discount programs.

As for future developments at Walt Disney World, the Orlando Sentinel's Scott Powers reports that "...neither [Iger] nor Staggs gave any indication of major new developments at Disney World anytime soon."

Iger was also asked to comment on the rumored DVC Bay Lake Tower being constructed next to the Contemporary.  Jason Garcia's blog entry recaps Iger's reply:

"The focus right now on the Vacation Clubs is in selling the Animal Kingdom property -- both the conversion of the Vacation Clubs in the Animal Kingdom hotel, as well as the additional Vacation Club units that we're creating in a new building structure adjacent to that hotel. And therefore the focus is on selling that. And that's why we've made no other announcements, nor have we put any other new Vacation properties online, meaning for sale."

 

Source:  Orlando Sentinel, blog

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