Disney CFO: Parks escape signs of slump

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Disney CFO: Parks escape signs of slump

Gary Gentile | the Associated Press
September 18, 2007

LOS ANGELES - Bookings at Walt Disney Co.'s domestic theme parks are not reflecting a broader economic downturn, the company's chief financial officer said Monday.

Travel bookings in the current quarter are up compared with the same period last year, Thomas Staggs told investors gathered at the Merrill Lynch Media and Entertainment conference.

"I'm not saying the parks are immune to the economy," Staggs said. "But thus far, we're not seeing any impact in the numbers."

International visits to the parks have still not recovered from the Sept. 11, 2001, terrorist attacks, Staggs said. Those visits might be expected to increase because of the weak dollar, but difficulties in gaining travel visas to the United States are still having a negative impact, Staggs said.

The company will likely increase capital spending to beef up its lagging second park in California, Staggs said.

Disney's California Adventure opened in 2001 next door to Disneyland and has been a disappointment to the company, which has steadily added attractions to the park. Disney is not likely to open any new parks in the United States in the foreseeable future, Staggs said.

Advertising revenue for the media conglomerate's ABC network shows also are strong and show no signs of broader problems in the economy, Staggs said.

Disney is seriously examining its mobile-phone venture and will be deciding its future in the coming months, Staggs said.

Staggs said the Disney-branded phone service, which uses Sprint Nextel Corp.'s network, has been successful in signing subscribers. But the business has had some difficulty growing quickly.

"We've seen some challenges in distribution," Staggs said. "We're evaluating where we sit."