One may assume that, amid a 12 months of extended financial uncertainty, U.S. shoppers is likely to be skipping amusement parks and reducing again on cruises. The Walt Disney Firm says in any other case. The media large’s fourth-quarter earnings have been propped up by sturdy gross sales in its experiences division, which incorporates its international theme parks, resorts and cruises.
Disney reported $1.4 billion in internet revenue for the July-September quarter, bolstered by a $1.9 billion revenue from its experiences division, which offset losses in its TV and movies enterprise. Income from theme parks and cruises jumped 6 p.c year-over-year to $8.7 billion. Development was fueled by stronger demand for Disney Cruise Line and better attendance and spending at Disneyland Paris, the corporate mentioned.
Disney dominates the amusement park sector, attracting 145 million guests in 2024 alone. The Magic Kingdom Park at Walt Disney World in Orlando was the most-visited theme park of final 12 months with 17.8 million attendees, in response to the TEA World Experiences Index for 2024, whereas Disneyland Park in Los Angeles ranked second with 17.3 million guests.
Regardless of issues that Could’s opening of Common’s Epic Universe may dent Disney’s presence in Orlando, the corporate mentioned the brand new rival park hasn’t affected its enterprise. “If something, it appears to be, actually, impacting the remainder of the competitors down in Florida greater than it’s impacting us,” mentioned Hugh Johnston, Disney’s chief monetary officer, throughout an earnings name immediately.
Common, owned by Comcast, has additionally seen regular demand. Its theme park division reported $2.7 billion in quarterly income, up practically 19 p.c year-over-year, within the July-September quarter.
The pattern matches a Forbes evaluation exhibiting sturdy customer demand at main U.S. vacation spot parks like Disney and Common, whilst attendance declines at inexpensive regional parks operated by firms corresponding to Six Flags and United Parks & Resorts.
Disney expects its experiences division to proceed booming—bookings for home parks are already up by 3 p.c within the present quarter, mentioned Johnston. And on the cruise facet, “the visitor satisfaction scores are greater than mainly anything within the firm,” he advised analysts.
The corporate is using that momentum with growth tasks underway at each considered one of its present theme parks, plus a seventh resort deliberate for Abu Dhabi that might open by the top of the last decade. Disney can also be including two new cruise ships to its fleet within the coming months, with extra anticipated after subsequent 12 months, in response to CEO Bob Iger. “The strategic investments we’re making now will assist guarantee our choices stay best-in-class and enchantment to audiences worldwide nicely into the longer term,” he advised analysts.
Past bodily expansions, Disney can also be eager about bolstering its experiences division by way of A.I. personalization. Integrating such know-how into the Disney+ app may create an “engagement engine” for customers eager about visiting Disney’s parks, resorts and cruises, mentioned Iger, who described the product as “a portal to all issues Disney.”
