Disney Parks - Financial Results
Walt Disney Parks and Resorts made a major contribution to its parent company’s bottom line during the second half of its financial year, with revenues increasing by 10%.
Between the October 11 and March 12, revenues from Disney’s theme parks around the world reached $2.9 billion. This was helped with boosts in attendance at the Disneyland Resort, Walt Disney World, Hong Kong Disneyland Resort and the Tokyo Disney Resort. The only exception to this boost was Europe’s sister park Disneyland Resort Paris which fell below expectations, as reported by Park Paradise earlier this week!
Combined attendance at the Disneyland Resort and Walt Disney World increased by 7% compared to the prior year, with record numbers of guests visiting the California resort.
Discussing the results on a conference call with analysts, Disney CEO Bob Iger pointed to Disney California Adventure as a likely source of further growth during the summer, with the staggered opening of the new $1.1 billion investment to California Adventure including Cars Land expected in June 2015 which will help boost figures in the next review. Iger claims that the improvements will enable the Disneyland Resort to "become the destination resort we envisioned" when Disney California Adventure first opened in 2001.
Overnight stays at Disneyland Resort and WDW hotels increased by 2% during the period, with guests also spending 7% more on average. This was largely due to Disney reducing the number and level of discounts on offer, although they have not been eliminated entirely.
While revenues were up at Disney’s theme parks, capital expenditure increased from $1.8 billion to $2.1 billion. This was driven by the cost of expanding Fantasyland at the Magic Kingdom, constructing Cars Land, adding a Ratatouille dark ride to Walt Disney Studios, Paris and constructing Shanghai Disneyland.
Good results across the board for Disney Parks Worldwide, and with the current expansion at California Adventure finishing in June 2012, the Fantasyland Expansion opening across the next year at WDW and Grizzly Gulch/Mystic Point opening across the next year at Disneyland Hong Kong I am sure spending on average will increase along with overall revenue figures and attendance figures.
Good job Disney!