Disney posts more strong financial results from its theme parks
Disney continues to crush it with its theme park business, reporting a big 13% jump in revenue during the three months ending in December when compared with the same period the year before. That pushed quarterly revenue to $5.2 billion for Walt Disney Parks and Resorts, according to the company.
Operating income was up 21% in Disney's theme park division, offsetting declines or flat performances in all of Disney's other businesses.
Disney reported higher attendance and guest spending at its domestic theme parks for the quarter, driven by higher prices on tickets and room rates and more spending on food, beverages, and merchandise. Pandora: The World of Avatar drove record attendance at Disney's Animal Kingdom and to the Walt Disney World Resort in 2017, Disney reported. Attendance also was up at the troubled Disneyland Paris Resort, thanks to its recent 25th anniversary. If you want to crunch some numbers yourself, here is Disney's press release.
Disney CEO Robert Iger told investors in a conference call that the success of its recent spending on theme parks "deepens our confidence" in future investments in the parks, including the upcoming Star Wars: Galaxy's Edge lands and expansions at the Walt Disney World Resort in advance of its 50th anniversary in 2021.
Rival Universal also is enjoying strong performance from its theme parks. Parent Comcast reported last month that Universal Parks and Resorts posted $1.6 billion in revenue for the quarter, representing a 9% year-over-year increase.
Note to Disney. Please use some of those profits to fix animatronics and other broken effects. Indiana Jones and the Yeti are just the tip of the ice burg.
Good call, Randy. Fix disco Yeti with your kajillion dollars, Disney!
I always felt that the theme parks were Disney's most direct connection to it's customers. If people had an awesome experience at the theme parks, it would fuel a passion for all things Disney. I felt that way as a kid. The movies were good, but what really made me a passionate fan was Disneyland, to be able to experience the movies in three dimension.
It's about time they start to invest more in the parks - increase space and capacity. The experience is becoming miserable with such huge increases in attendance.
Wow, just think - if Disney would have earned 5.3 billion they could have possibly considered refurbishing the Disney World monorail.
I agree with Disfan... Disney consistently sees return on investment in their parks and suffers "disappointing numbers" when they try to be "efficient".
This is all good news for theme park fans! Once all the new projects are done, I think the 4 parks could easily be full day experiences (though I already think they are, but others disagree). As long as each park has something impressive to offer, I'll continue spending my meager teacher salary to take my family and enjoy it. Sure, it costs me a fortune, but I've honestly never been able to find another vacation that gives me and my family the most consistent bang for our buck.
I love the fact that Disney is reinvesting billions into their parks. But I hope they will also take the profits and invest it in staffing. Pay the cast members properly, and stop cutting staffing and ride capacity during less busy times at the parks. The parks are pretty busy all year anyway, hence the huge and growing profits for their parks division.
Queue the annual admission price increase announcement...
All I hear is that Disney is again cutting money on every corner because of the investments that they are doing at the moment. Anyone remember #ThanksShanghai?
Disney’s Parks & Resorts segment reported 1Q18 revenue of $5.154 billion and operating income of $1.347
Disney's parks are more popular, but they also have much more of them. And their parks division includes the cruise line.
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