Disney’s monumental subscriber growth may have dominated headlines Wednesday evening, but its revenue from parks was just as impressive.
More specifically, during Wednesday’s quarterly earnings call it was revealed that Disney Parks and related experiences and products had increased to $6.7 billion compared to $3.2 billion in the previous quarter.
The company concluded that increased spending by guests at its global attractions helped to offset the higher costs of operation.
You can check out the company’s complete statement on the good news below:
Operating income growth at our domestic parks and experiences was due to higher volumes and increased guest spending, partially offset by higher costs. Higher volumes were due to increases in attendance, occupied room nights and cruise ship sailings. Cruise ships operated at reduced capacities in the current quarter while sailings were suspended in the prior-year quarter. Guest spending growth was due to an increase in average per capita ticket revenue, higher average daily hotel room rates and an increase in food, beverage and merchandise spending. The increase in average per capita ticket revenue was due to a favorable attendance mix and the introduction of Genie+ and Lightning Lane in the first quarter of the current fiscal year. Higher costs were primarily due to volume growth, cost inflation and higher marketing spending. Our domestic parks and resorts were open for the entire current quarter, whereas Disneyland Resort was closed for all of the prior-year quarter, and Walt Disney World Resort operated at reduced capacity in the prior-year quarter due to COVID-19 restrictions.
Improved results at our international parks and resorts was due to growth at Disneyland Paris, partially offset by decreases at Hong Kong Disneyland Resort and Shanghai Disney Resort. Higher
7 operating results at Disneyland Paris were due to increases in attendance and occupied room nights, partially offset by higher operating costs due to volume growth and increased marketing costs. The decreases at Hong Kong Disneyland Resort and Shanghai Disney Resort were driven by lower attendance.
Disneyland Paris was open for the entire current quarter and closed for all of the prior-year quarter. Hong Kong Disneyland Resort was open for 3 days in the current quarter compared to 33 days in the prior-year quarter. Shanghai Disney Resort was open for 78 days in the current quarter and open for all of the prior year quarter. Tokyo Disney Resort was open for the entire quarter in both the current and prior years.
Growth in merchandise licensing was driven by higher sales of merchandise based on Mickey and Minnie, Spider-Man, Star Wars Classic and Disney Princesses, partially offset by lower minimum guarantee shortfall recognition.
The news is somewhat surprising considering the backlash the company faced towards the tail-end of the quarter surrounding Florida’s ‘Don’t Say Gay‘ bill. It is important to note, however, that this report takes into account the company’s international locations and not just those in the United States. There is a possibility that the company could face long-term consequences for its somewhat delayed reaction and decision to continue to speak out against the legislation.
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