The Walt Disney Company has reported quarterly earnings for its first fiscal quarter ended December 30th, 2017, with revenue from parks and resorts increasing to $5.2bn.
Earnings for the quarter increased 22 per cent to $1.89 from $1.55 in the prior-year quarter.
“The strategic investments we’ve made have driven meaningful growth over the long term, and we remain confident in our ability to continue to deliver significant shareholder value,” said Robert A. Iger, chairman and CEO. “We’re excited about what lies ahead, with a robust film slate, the launch of our ESPN direct-to-consumer business, new investments in our theme parks, and our pending acquisition of Twenty-First Century Fox.”
Parks and Resorts revenues for the quarter increased 13 per cent to $5.2 billion and segment operating income increased 21 per cent to $1.3 billion.
Operating income growth for the quarter was due to increases at domestic parks and resorts, cruise line and vacation club businesses as well as at Disneyland Paris. Domestic results benefited, however, from the comparison to the impact of Hurricane Matthew, which occurred in the prior-year quarter.
Higher operating income at domestic parks and resorts was driven by guest spending growth and an increase in attendance, partially offset by higher costs. Guest spending growth was due to higher average ticket prices, food, beverage and merchandise spending and average daily hotel room rates. The increase in costs was driven by labour and other cost inflation, expenses for new guest offerings and an increase in depreciation associated with new attractions. The increase at Disney Vacation Club was driven by sales at Copper Creek Villas & Cabins in the current quarter.
Growth at Disneyland Paris reflected higher attendance and increased average ticket prices, both of which benefited from the 25th Anniversary celebration.