Disney Parks report 9% rise in profits

Disney Parks report 9% rise in profits

Walt Disney Parks and Resorts saw its operating profit rise by 9% to $519 million in the three months to July.

The result from the theme parks and cruise line segment of the entertainments giant came on a 12% boost in quarterly revenues to $3.2 billion. It was  driven by increases at the group's US parks and resorts, Disney Cruise Line, and Hong Kong Disneyland Resort, partially offset by decreases at Disneyland Paris and Tokyo Disney Resort.

The decline at Tokyo Disney Resort was driven by the impact of the March 2011 earthquake in Japan which resulted in a temporary closure of the two parks and hotels and a continuing reduction in volume after reopening.

"Higher operating income at our domestic parks and resorts was driven by higher guest spending and, to a lesser extent, attendance, partially offset by increased costs," Disney said.

"Increased guest spending reflected higher average ticket prices, daily hotel room rates and food, beverage and merchandise spending."

Higher operating income at Disney Cruise Line was due to a full quarter of operations for new ship Disney Dream, partially offset by the related incremental operating costs.

The improvement at Hong Kong Disneyland Resort reflected higher guest spending and attendance.

The decline at Disneyland Paris was due to a sale of real estate last year and increased costs, repairs and maintenance and labour cost inflation.

"These decreases were partially offset by increased guest spending which was due to higher average ticket prices and daily hotel room rates," the company said.

Overall Walt Disney Company net profit for the quarter rose by 11% to £1.4 billion.

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