Disney’s theme parks and cruise line reported an unprecedented quarter, showcasing resilience in the face of declining attendance.
- The experiences division’s operating profit surged by 8% to reach $3.1 billion, while revenue climbed 7% to $9.1 billion.
- Even with reduced visitor numbers in the US and Europe, Disney Cruise Line’s improved metrics supported the overall profit.
- Shanghai Disney Resort enjoyed increased attendance following fewer Covid-19 restrictions, boosting international performance.
- CEO Robert Iger articulated optimism for future growth, highlighting strategic achievements and opportunities for shareholder gains.
Disney’s theme parks and cruise line reported an unprecedented quarter, showcasing resilience in the face of declining attendance. Despite the challenges posed by reduced footfall at its US and European locations, the company managed to uphold strong profitability. The division dedicated to experiences marked an exceptional year, generating an 8% rise in operating profit to $3.1 billion, while revenue ascended by 7% to a substantial $9.1 billion.
Even with reduced visitor numbers in the US and Europe, Disney Cruise Line’s improved metrics supported the overall profit. The cruise segment outperformed expectations, with notable increases in average ticket prices and passenger cruise days, though tempered by rising operational costs. Shanghai Disney Resort’s robust performance, featuring a full quarter of openings, played a critical role in offsetting challenges at other parks.
Shanghai Disney Resort enjoyed increased attendance following fewer Covid-19 restrictions, boosting international performance. Hong Kong Disneyland Resort also mirrored these gains, aided by longer opening periods and strategic pricing adjustments. These efforts collectively contributed to elevated returns, notwithstanding the previous year’s heightened anniversary-driven visitor numbers in Paris and the US.
Robert Iger, Chief Executive Officer, expressed enthusiasm over these achievements, stating: “Looking at the renewed strength of all of our businesses this quarter – from sports, to entertainment, to experiences – we believe the stage is now set for significant growth and success.” This optimistic outlook is underpinned by a focus on cost efficiencies and innovative attractions like Hong Kong Disneyland Resort’s World of Frozen and Shanghai Disney Resort’s Zootopia.
The company’s strategic focus remains on enhancing shareholder value through continuous improvement in earnings and free cash flow, reaching towards a $7.5 billion savings goal by the end of the financial year. The resilience demonstrated by Disney’s theme parks and cruise line underscores a well-executed strategy amidst an evolving global landscape.
Disney’s strategic execution and adaptability have set a promising stage for future growth and shareholder satisfaction.
