The Walt Disney Company today reported earnings for its first quarter ended December 30, 2023.
Revenues for the quarter were comparable to the prior-year quarter at $23.5 billion. Operating income at the domestic parks was down 2%, with revenues up 4%.
According to the earnings report, factors impacting Walt Disney World's Q1 2024 performance were:
- Lower volumes due to decreases in attendance and occupied room nights, both of which reflected the comparison to the 50th anniversary celebration in the prior-year quarter.
- Higher costs due to inflation, partially offset by cost saving initiatives and lower depreciation.
- Increased guest spending due to higher average ticket prices, partially offset by lower average daily room rates.
"Just one year ago, we outlined an ambitious plan to return The Walt Disney Company to a period of sustained growth and shareholder value creation," said Bob Iger, Chief Executive Officer, The Walt Disney Company. "Our strong performance this past quarter demonstrates we have turned the corner and entered a new era for our company, focused on fortifying ESPN for the future, building streaming into a profitable growth business, reinvigorating our film studios, and turbocharging growth in our parks and experiences.
"As we build for the future, the steps we are taking today lend themselves to solidifying Disney's place as the preeminent creator of global content. Looking at the renewed strength of all of our businesses this quarter – from Sports, to Entertainment, to Experiences – we believe the stage is now set for significant growth and success, including ample opportunity to increase shareholder returns as our earnings and free cash flow continue to grow."
New Reporting Structure
This is the second quarter that Disney is using its new financial reporting structure, entertainment, sports, and experiences. Entertainment contains all of Disney's streaming and media operations, sports includes ESPN, and experiences includes the company's theme parks, hotels, cruise line, and merchandising.
Results from the Parks
The decrease in operating income at our domestic parks and experiences reflected lower results at our domestic parks and resorts, largely offset by higher results at Disney Cruise Line.
At our domestic parks and resorts, lower results in the current quarter compared to the prior- year quarter were due to:
- A decrease at Walt Disney World Resort reflecting a modest decrease in revenues and higher costs. These impacts were due to:
- Lower volumes due to decreases in attendance and occupied room nights, both of which reflected the comparison to the 50th anniversary celebration in the prior-year quarter
- Higher costs due to inflation, partially offset by cost saving initiatives and lower depreciation
- Increased guest spending due to higher average ticket prices, partially offset by lower average daily room rates
Results at Disneyland Resort were comparable to the prior-year quarter as revenue growth was largely offset by an increase in costs. These impacts were attributable to
- Increased guest spending primarily due to higher average ticket prices
- Attendance growth
- Higher costs driven by inflation
Growth at Disney Cruise Line was due to increases in average ticket prices and passenger cruise days, partially offset by higher costs
International Parks and Experiences
Higher international parks and experiences' operating results were due to:
Growth at Shanghai Disney Resort due to:
- Higher volumes attributable to an increase in attendance. The park was open for all of the current quarter compared to 58 days in the prior-year quarter as a result of COVID-19 related closures.
- Guest spending growth due to an increase in average ticket prices
Higher operating income at Hong Kong Disneyland Resort attributable to:
- Guest spending growth primarily due to an increase in average ticket prices
- Higher volumes resulting from increases in attendance, which benefited from the park being open for more days in the current quarter, and occupied room nights
- Increased costs driven by inflation and new guest offerings
Results at Disneyland Paris were comparable to the prior-year quarter due to:
- Higher costs primarily attributable to increased operations support costs and inflation
- Lower volumes primarily due to a decrease in attendance. The prior-year quarter included the 30th anniversary celebration.
- The comparison to a loss in the prior-year quarter on the disposal of our ownership interest in Villages Nature
View the full Q1 2024 Earnings Report
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