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Shanghai opening boosts Disney revenues

Revenues from Walt Disney Company’s parks and resorts rose by 9% in the first three months of the year to $4.3 billion.

The division’s year-on-year operating income was up by 20% to $750 million in the quarter to April 1.

Profit growth followed the opening of Shanghai Disney Resort last year and increases at the entertainment group’s US parks and resorts.

The company said: “Operating income growth at our domestic parks and resorts was due to higher volumes, driven by increased attendance and guest spending on food and beverage, as well as higher operating participant income from [Orlando-based shopping, dining and entertainment complex] Disney Springs.

“These increases were partially offset by higher costs. Higher costs were due to labour and other cost inflation, increased marketing spend and higher expenses for new guest offerings, partially offset by efficiency initiatives.”

Parks and resorts revenues for the six months to April 1 rose buy 8% to $8.8 billion.

Chairman and CEO Robert Iger said: “Our continued strong performance is a direct result of our proven strategic focus on great branded content, innovative technology and global growth.

“We’re pleased with our results and remain confident in our ability to continue to deliver significant shareholder value over the long term.”

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