In this morning's MoffettNathanson Media and Communications Summit, Disney CEO Bob Iger provided detailed insights into the company's strategic approach to its parks and resorts while highlighting significant upcoming projects and investments.
Iger emphasized the return on invested capital in Disney's parks and resorts, describing it as one of the company's highest-yielding segments. "I looked at the return on invested capital in our parks and resorts unit over my tenure, and it was extraordinary," he said.
During the interview, Bob Iger highlighted the performance of Disney's parks in the last quarter, noting that all parks achieved record revenue, per capita spending, and attendance, with the sole exception of Disney World. "We had record revenue in all of our parks, record per capita spending, and record attendance in every one of our parks except Disney World, which was still strong," Iger stated.
International Growth and Development
Iger provided updates on Disney's international parks, emphasizing their growth and potential.
Opened in 2016, Shanghai Disneyland has become the top tourist destination in Shanghai and significantly boosted Disney's brand affinity in China. "Shanghai Disneyland has had a huge impact on brand affinity in China. It's the number one tourist destination in Shanghai," Iger said.
Hong Kong Disneyland has seen steady growth, with recent expansions and continued development. At Disneyland Paris, the second park, previously known as Walt Disney Studios, has undergone significant investment and expansion. Iger noted, "We've been investing nicely in the second park in Paris, which will ultimately be renamed, and there are a lot more attractions being built that will open in the next two to three years."
Competition and Future Growth
Iger addressed the competition from Universal's new Epic Universe park in Orlando, expressing confidence in Disney's IP and the strategic investments made over recent years. "We've had competition for a long time. I'm mindful of what they're doing, but I'm confident in what we've built and will continue to grow," he stated. He continued that Galaxy's Edge, the expansive Star Wars-themed land, has been a significant draw, featuring two e-ticket attractions that have wowed guests since its opening. Similarly, Tron Lightcycle Run, a coaster inspired by the Tron franchise, has become a popular addition, first debuting in Shanghai and later in Disney World.
Finally, Iger touched on the continued popularity and multi-generational appeal of Disney's parks and cruises, highlighting their resilience and the lasting value they provide. "The experience that we deliver, whether it's at a park or on a cruise ship, is an extraordinary experience that I think where the value is not going away. It's showing no signs of ebbing at all," he said.
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