Theme Park Revenue Up 23% In Q2 Says Walt Disney Company
Profits at Disney’s theme parks are on the rise according to The Walt Disney Company’s Q2 2023 Quarterly Earnings Report which was published online this afternoon. The company said that Disney Parks, Experiences, and Product revenues for the quarter increased by 17% to $7.8 billion and that segment operating income increase 23% to $2.2 billion.
Disney advised that the higher operating results from the second quarter of 2023 increased at Disney Parks around the globe and offset lower profits in merchandising and licensing. The growth in profitability of the theme parks was attributed to a few factors outlined in the report including growth at parks previously impacted by COVID-19. This includes Shanghai Disney, Disneyland Paris, and Hong Kong Disney Resort.
Results at Disney’s International Parks
Shanghai Disney Resort benefited from higher volumes of guest spending growth This is attributed to increases in ticket prices, food, beverage, and merchandise spending.
Over at Disneyland Paris, the growth was a result of higher attendance, and an increase in guest spending. During the earnings call, Iger called the Avengers Campus which just opened in Paris “a resounding success.” Average ticket prices went up as did daily hotel room rates, food, beverage, and merchandise costs all resulting in higher profits.
According to the earnings report, higher results at Hong Kong Disneyland are being attributed to a greater amount of operating days. Hong Kong was not impacted during COVID-19 closures during this fiscal quarter.
Growth at Disney’s Domestic Parks
It should not be overlooked that operating income growth at Disney’s domestic parks and experience was partially due to Disney Cruise Line. This uptick in Disney Cruise Line profits was due to an increase in passenger cruise days with the addition of the Disney Wish which launched in the fourth quarter of 2022. With this in mind, results at Walt Disney World and Disneyland are down over the prior-year quarter. The downturn at Walt Disney World was offset by growth at Disneyland Resort. The shift at Disney World is being attributed to higher costs as a result of inflation, an increase in operating expenses, the unveiling of new guest offerings, and higher depreciation.
These factors were partially offset by an increase in attendance growth and hotel occupancy
Operating income at Disneyland Resort is a result of growth in attendance and guest spending which offset the higher operating costs. Average ticket pricing was increased as were daily hotel room rates. Rates were increased due to higher operations costs and an increase in spending due to new guest attractions and offerings.
Going forward Iger said that he hopes to expand on the success of the theme parks by continuing to come up with “innovative new ways to have deeper connections” with theme park goers.
This is a story that we will continue to follow closely. Readers are encouraged to keep checking back with us for further news and updates.
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