Disney Plans to “Turbocharge” Growth in Experiences Over 10 Years
Today marks the fourth quarter earnings call for The Walt Disney Company, which showed some surprising results.
In addition to adding 7 million core Disney+ subscribers, Disney also reported a 5% increase in revenue for the fourth quarter. And along with all the financial data, Disney CEO Bob Iger revealed four core opportunities, including plans to “turbocharge” growth. Let’s discuss.
4 Building Opportunities
According to Iger, as The Walt Disney Company continues to move forward, they are “focusing on four key building opportunities that will be central to our success.”
Iger said, “We have already made considerable progress on these four opportunities, and we will continue to move forward with a sense of purpose and urgency.”
Those four opportunities are as follows:
- Achieving significant and sustained profitability in our streaming business
- Building ESPN into the preeminent digital sports platform
- Improving the output and economics of our film studios
- Turbocharging growth in our Experiences business
Parks and Experiences Growth
According to Iger, Disney is planning to build their Experiences segment “into an even bigger and more successful cash-flow generation business.”
“Parks and Experiences overall remains a growth story, and we are managing our portfolio exceptionally well,” Iger said.
Iger continued, “Even in the case of Walt Disney World, where we have a tough comparison to the prior year, when you look at this year’s numbers compared to pre-pandemic levels in fiscal ’19, we have seen growth in revenue and operating income of over 25 and 30%, respectively.”
The Walt Disney Company’s invested capital in the domestic parks over the past five years has nearly doubled, and they are also seeing improved guest experience ratings from every park.
As a result, Iger shared plans to “turbocharge growth” over the next 10 years in the Experiences business. He said, “Given our wealth of IP, innovative technology, buildable land, unmatched creativity, and strong returns on invested capital, we’re confident about the potential from our new investments.”
Interim CFO Kevin Lansberry also said that this planned turbocharge of investments will “ramp up” more in the latter half of the 10-year investment period. In the first few years, there will be more gradual growth, so it doesn’t seem like we’re going to see any of those park expansions for a while.
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