Hurricanes Milton and Helene impacted hit the financial performance of Walt Disney’s Florida theme parks by $120 million in the last quarter.
The entertainment giant’s parks-led experiences division also incurred about $75 million in expenses associated with the December launch of the Disney Treasure cruise ship.
Operating income from the experiences division was $3.1 billion, in line with the same quarter last year.
Disney’s overall revenue for the three months to December 28 rose 5% to $24.7 billion, with net income up 22% to $2.6 billion.
The strength in entertainment, which includes film, television and streaming, helped offset a decline in performance at US theme parks, which were affected by the hurricanes in Florida.
Operating income from US parks and experiences fell by 5% to $1.9 billion due to the hurricanes and cruise pre-opening expenses, according to quarterly financial results. This was offset by a 28% improvement in the performance of the sector’s international parks to $420 million.
The company said: “Domestic parks and experiences’ operating results for the current quarter were unfavourably impacted by Hurricane Milton and, to a lesser extent, Hurricane Helene.
“As a result of Hurricane Milton, Walt Disney World Resort was closed for a day and we cancelled a cruise itinerary.
“Operating results at our domestic parks and experiences decreased compared to the prior-year quarter due to:
- Higher costs primarily due to the fleet expansion at Disney Cruise Line and inflation;
- Lower volumes attributable to declines in attendance, reflecting the impact of the hurricanes;
- Increased guest spending.”
The increase in operating income at international parks and experiences was primarily attributable to growth in guest spending, higher volumes primarily attributable to an increase in attendance and increased costs mainly due to new guest offerings, Disney reported.
Chief executive Robert Iger hailed the experiences segment for demonstrating its “enduring appeal” as Disney continues investing strategically across the globe.
“Overall, this quarter proved to be a strong start to the fiscal year, and we remain confident in our strategy for continued growth,” he added.