Disney Parks business shines in mixed Q1 report of Walt Disney Disney Co.
The strength of the Disney Parks segment of the Walt Disney Co. helped offset flat and losses in other areas, in Q1, according to the company’s Q1 report.
Parks & Resorts revenues jumped 13 percent and operating income in the segment rose 21 percent, more than making up for declines in other businesses. Overall revenues were up 4 percent and operating income up 1 percent.
Revenue by the various segments of the business include:
Media Networks: $6.24 billion, remaining flat
Parks and resorts: $5.15 billion, up 13 percent
Studio Entertainment: $2.5B , down 1 percent
Consumer Products & Interactive Media: $1.45 billion, own 2 percent.
In addition to the Disney Parks resort revenues increasing the first quarter, the operating income increased 21 percent to $1.3 billion due to the increases at domestic parks and resorts, cruise line and vacation club businesses as well as at Disneyland Paris.
The results benefited from the year to year comparison. Last year Hurricane Matthew played a large factor in the first quarter revenue for the Disney Parks.
Domestic parks and resorts income increase was driven by guest spending growth and an increase in attendance, partially offset by higher costs. Guest spending growth was due to higher average ticket prices, food, beverage and merchandise spending and average daily hotel room rates, according to the company.
The increase in costs was driven by labor and other cost inflation, expenses for new guest offerings and an increase in depreciation associated with new attractions.
The cruise line growth was due to higher passenger cruise days, which reflected the impact of the Disney Wonder dry-dock in the prior-year quarter. The increase at Disney Vacation Club was driven by sales at Copper Creek Villas & Cabins in the current quarter.
Growth at Disneyland Paris reflected higher attendance and increased average ticket prices, both of which benefited from the 25th Anniversary celebration.
The strong segement deepens the confidence of all the expansions coming to the future, Disney CEO Bob Iger said during the Q1 phone call.
