US growth offsets international costs at Disney parks and resorts

US growth offsets international costs at Disney parks and resorts

Quarterly revenues for Walt Disney Company’s theme parks and resorts rose by 4% to $4.1 billion, resulting in operating income up 9% to $922 million.

Operating income growth for the three months to June 27 was due to an increase at US parks, partially offset by a decrease at Disney’s international operations.

“Lower operating income at our international operations was due to lower attendance and occupied room nights at Hong Kong Disneyland Resort, higher operating costs at Disneyland Paris and Hong Kong Disneyland Resort, and higher pre-opening expenses at Shanghai Disney Resort,” the company said.

“These decreases were partially offset by higher average ticket prices, increased food, beverage and merchandise spending and higher volumes at Disneyland Paris.”

Disney said: “Higher operating income at our domestic operations was primarily due to volume and guest spending growth, partially offset by higher costs.

“The increase in volumes was due to attendance growth at our theme parks and higher occupied room nights at Walt Disney World Resort and our Aulani resort in Hawaii.

“Guest spending growth was due to higher food, beverage, and merchandise spending, increases in average ticket prices at our cruise line and Disneyland Resort and higher average hotel room rates.

“Cost increases were due to labour and other cost inflation, costs for the 60th Anniversary celebration at Disneyland Resort and higher pension and post-retirement medical costs, partially offset by lower marketing costs at Walt Disney World Resort.”

Overall Walt Disney Company profits for the three months rose to $2.5 billion from $2.2 billion in the same period last year.

Chairman and chief executive, Robert Iger, said: “The strong results across our many diverse lines of business demonstrate the power of our unparalleled brands, franchises and creative content."

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