Hurricanes Helene and Milton cost Disney’s theme parks $130 million, the global entertainment giant disclosed.
The Walt Disney Company’s current quarter operating income for its experiences division will also be affected by $90 million Disney Cruise Line pre-launch costs of new ships.
The disclosure of the impact of the twin hurricanes which hit Florida in October came alongside financial results for the year to September, including the summer quarter, reported by the company.
Looking forward to the 2024-25 financial year, Disney projected operating income growth of 6%-8% for its experiences division, weighted to the second half.
Current first quarter operating profit has been “adversely impacted by approximately $130 million due to to Hurricanes Helene and Milton and approximately $90 million due to Disney Cruise Line pre-launch costs,” Disney said.
However, the theme parks and cruise line achieved record revenue and operating income for the 12 months to September.
They lie within the company’s experiences segment which reported a 4% rise in annual operating profit to $9.2 billion with revenue up by 5% to $34.1 billion.
The peak summer quarter saw operating income decline 6% to $1.7 billion as revenue edged up by 1% to $8.2 billion.
International parks and experiences operating income fell in the three month period due to a drop in attendances and lower theme park spending by visitors.
Operating income for the sector in the US increased on comparable attendance, driven by higher guest spending at theme parks and Disney Cruise Line.
However, this was partially offset by higher expenses and costs related to new guest offerings driven by the cruise arm, Disney said.
Higher costs were primarily due to inflation, new guest offerings, increased technology spending and higher operations’ support costs, partially offset by the comparison to depreciation in the prior-year quarter related to the closure of Star Wars: Galactic Starcruiser.
Overall net income for the quarter came in at $460 million, up from $264 million in the equivalent three months last year to give an annual total of almost $5 billion.
Reporting on the 12 months to September, chief executive Robert Iger said: “This was a pivotal and successful year for The Walt Disney Company, and thanks to the significant progress we’ve made, we have emerged from a period of considerable challenges and disruption well positioned for growth and optimistic about our future.”