Thursday, 9 May 2013

Disney surges on new cruise ship, higher park attendance

Disney surges on new cruise ship, higher park attendance

By Michelle Baran
Operating income and revenue at Walt Disney Co.’s Parks and Resorts division continued to grow in the company’s fiscal second quarter, due in large part to the Disney Fantasy cruise ship and increased spending at the domestic parks.

Operating income for Parks and Resorts increased 73% to $383 million, and revenue grew 14% to $3.3 billion, Disney reported.

Disney said that higher operating income for domestic operations was primarily due to increased guest spending and attendance at the Walt Disney World Resort in Florida and the Disneyland Resort in California, as well as the Disney Fantasy cruise ship, which launched in March 2012.

During the second-quarter earnings call on Tuesday, Disney executives continued to tout investments recently made in the domestic parks, most notably the multibillion-dollar overhaul of Disney California Adventure at the Disneyland Resort, as driving returns.

Additionally, the company reported higher guest spending at Disneyland Paris and increased attendance at Hong Kong Disneyland.

For the entire company, net income for the quarter increased 32% to $1.5 billion. Revenue grew 10% to $10.55 billion.