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Disney’s US theme parks and cruises lead recovery with Covid curbs lifted

Higher levels of holidaymakers who spent more helped push operating profits at Disney theme parks and cruises up by $1.8 billion in the last quarter.

The results came as they generally operated free from Covid-19 restrictions with the exception of Shanghai Disney Resort which was open for just three days.

The Walt Disney Company parks, experiences and products division reported operating income of $2.2 billion in the April-June period against $0.4 billion in the same three months last year.

This came as revenues for the quarter increased to $7.4 billion year-on-year from $4.3 billion. 

The company said: “Our domestic parks and resorts are generally operating without significant Covid-19-related capacity restrictions, such as those that were generally in place in the prior year. In addition, our cruise ships have generally been operating without Covid-19-related capacity restrictions since April 2022.

“Certain of our international parks and resorts continue to be impacted by Covid-19-related closures and capacity and travel restrictions.

“We have incurred, and will continue to incur, costs to address government regulations and the safety of our employees, guests and talent, of which certain costs are capitalised and will be amortised over future periods.”

The higher operating results for the quarter reflected increases at US parks and experiences and, to a lesser extent, at international parks and resorts, the company said.

“Operating income growth at our domestic parks and experiences was due to higher volumes and increased guest spending, partially offset by higher costs,” the theme park giant added. “Higher volumes were due to increases in attendance, occupied room nights and cruise ship sailings.” 

Disney Cruise Line ships were operating throughout the entire quarter while sailings were suspended in the same period last year due to Covid-19 restrictions. 

“Guest spending growth was due to an increase in average per capita ticket revenue and higher average daily hotel room rates,” the company said while releasing results for the third quarter of its financial year.  

“Our domestic parks and resorts were open for the entire current quarter, whereas Disneyland Resort was open for 65 days of the prior-year quarter, and Walt Disney World Resort operated at reduced capacity in the prior-year quarter.

“Improved results at our international parks and resorts were primarily due to growth at Disneyland Paris, partially offset by a decrease at Shanghai Disney Resort. Higher 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. Disneyland Paris was open for the entire current quarter compared to 19 days in the prior-year quarter. 

“The decrease at Shanghai Disney Resort was due to the park being open for all of the prior-year quarter but only for three days in the current quarter.”

 

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