BREAKING: Disney Parks Make Huge Revenue Gain
This afternoon, the Walt Disney Company issued their third quarter earnings report. Let’s just say it was a great day for Disney Parks, Experiences and Products.
Compared to last year, the third quarter revenue increased by a value of $3.2 billion, thanks in large part to reopenings at theme parks as the COVID-19 pandemic improved. In the prior year, Disney Parks reported an income of $1.1 billion; however, today, the same group reported an income of $4.3 billion this quarter, according to the report.
The report notes that the incredible increase in income reflects “increases at our domestic and interntaional parks and experiences businesses and at merchandise licensing and retail.”
Both Shanghai Disney Resort and Walt Disney World Resort remained open throughout the entire third quarter as compared to last year when the Orlando-based resort remained closed throughout the entire third quarter. This year, Hong Kong Disneyland also stayed open for 72 days of the third quarter, Disneyland welcomed guests for 65 days in the quarter, and Disneyland Paris opened for 19 days during the same period. Many of these entities did not open at all during last year’s third quarter.
Merchandise Trends Upward
The third quarter also celebrated the popularity of classic Disney characters as well as that of the Star Wars universe and Marvel Studios heroes (and villains).
“Growth in merchandise licensing was primarily due to higher revenue from merchandise based on Mickey and Minnie, Star Wars, including The Mandalorian, Disney Princesses, and Spider-Man,” the report states.
Despite many shuttering their doors forever, Disney Stores also saw higher retail sales compared to last year. However, the vast majority of those stores closed throughout the third quarter the year prior due to the pandemic, which greatly impacted sales data.
Disney Genie to Transform Parks
Early in the call, Walt Disney Company CEO Bob Chapek also mentioned the much-anticipated Disney Genie, which many see as a possible replacement at the Walt Disney World Resort for FastPass+.
Chapek mentions Genie, says the company is “excited about his new service” and more details will be released “soon.”
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“MyMagic+ was basically us sticking our toe in the pond of this type of transformation work. Disney Genie though is that program on steroids,” Chapek said during the Q&A. “This is going to revolutionize our guest experience. Guests are going to spend less time waiting and more time having fun in our parks with a dramatically improved guest experience. It’s going to make their navigation of and their planning of their day much easier.”
The new Genie technology blends industrial engineering research with guest experience data to build the most efficient day possible based on guest preference and daily park operations. Chapek said. Chapek also noted that this system will adjust “on the fly” for a truly “transformational” impact.
Coronavirus Impacts at Parks Diminish
Despite the recent increase in coronavirus cases, Chapek also remarked that the company still sees “really strong demand for our parks.” Reservations for parks continue to display an increase in demand, according to the company leader as he answered questions later in the call.
He also mentioned that, in the process of mitigating the virus, the parks developed a world-class yield management system that will certainly improve the guest experience for the long haul.
With the 50th anniversary of the Walt Disney World Resort 50 days away, Chapek noted that he expects the Orlando resort area to be fully staffed by the end of the year. The park currently fills 70 percent of its on-property resort rooms, according to the earnings call.