Higher spending and attendance sees profits soar at Walt Disney theme parks

Higher spending and attendance sees profits soar at Walt Disney theme parks

Higher spending by holidaymakers helped Walt Disney Company theme parks achieve operating income of $1 billion in the three months to March.

The entertainment giant’s Parks and Resorts division saw a 27% year-on-year rise in income as revenues for the period increased 13% to $4.9 billion.

Higher operating income at Disney’s US parks and resorts was primarily due to increased guest spending, higher attendance at Walt Disney World Resort and improved sponsorship revenue, partially offset by increased costs.

“Guest spending growth was due to increases in average ticket prices, average daily hotel room rates and food, beverage and merchandise spending,” the company said.

“The increase at our international parks and resorts was due to growth at Disneyland Paris and higher occupied room nights and attendance at Hong Kong Disneyland Resort.

“These increases were partially offset by a decrease at Shanghai Disney Resort driven by lower attendance, cost inflation and an unfavourable foreign currency impact.

“Higher operating income at Disneyland Paris was due to increases in guest spending and attendance, partially offset by cost inflation.

“Guest spending growth at Disneyland Paris was due to higher average ticket prices driven by less discounting, and increases in average daily hotel room rates and food, beverage and merchandise spending.”

Overall Walt Disney Company second quarter net profits rose by 23% to almost $3 billion.

The financial performance was assisted by a 10% tax cut to 24.5% as part of US president Donald Trump’s Tax Act.

Walt Disney chairman and CEO Robert Iger said: “Driven by strong results in our parks and resorts and studio businesses, our Q2 performance reflects our continued ability to drive significant shareholder value.”

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