Disney executives express confidence in their theme parks segment and refute concerns about an economic deceleration.
Amid ongoing discussions about economic challenges, bookings at Disney’s theme parks remain robust, as highlighted during a Wednesday earnings call.
Walt Disney’s interim Chief Financial Officer, Kevin Lansberry, stated:
“We’re not seeing anything in terms of an economic hangover. Domestically we feel good. Internationally we feel good.”
Moreover, he added that the bookings at both Disneyland and Disney Cruise Line are still “very, very strong.”
The financial performance of Disney Theme Parks and Experiences in the fourth quarter underscores this resilience, with revenue reaching $8.2 billion, marking a 13% increase from the previous year. Operating income surged to $1.8 billion, reflecting a substantial 31% rise.
Within the domestic division, operating income witnessed a 9% increase to $808 million in the quarter. This growth was attributed to positive developments at Disney Cruise Line and Disney Vacation Club. However, domestic parks and resorts faced challenges, grappling with elevated costs linked to the closure of Star Wars: Galactic Starcruiser and inflationary pressures.
On the international front, operating income experienced an impressive surge, exceeding 100% to reach $441 million. This substantial increase was driven by the success of Shanghai Disney Resort and Hong Kong Disneyland. Both parks witnessed heightened guest spending, attributed to increased ticket prices and a rise in attendance.
CEO Bob Iger emphasized the pivotal role of Disney Parks and Experience as one of the four key building opportunities essential to Walt Disney Corporation’s success. He underscored the company’s dedicated focus on “turbocharging growth in our parks and experiences business.”
Throughout the fiscal year, Disney demonstrated its commitment to this growth by investing $5 billion in parks, resorts, and property developments. The strategic investments align with Disney’s proactive approach to enhancing and expanding its offerings within the thriving theme parks and experiences sector.
