Disney Cruise Line has been identified as an area of “enormous” opportunities by Disney’s CFO Hugh Johnston. The cruise business has been a significant contributor to revenue and operating income growth within Disney’s Parks and Experiences division. Johnston emphasized the high level of guest satisfaction associated with Disney cruises and highlighted the upcoming additions to the fleet, such as the Disney Treasure and Disney Adventure ships. Additionally, the opening of Lookout Cay at Lighthouse Point in June is expected to further enhance the guest experience.
CEO Bob Iger expressed excitement about the expansion of the Disneyland Resort in Anaheim, California. The DisneylandForward initiative, aimed at expanding Disneyland’s parks within the limited available space, received preliminary approval from the Anaheim City Council. This approval sets the stage for the much-anticipated addition of Avatar to Disneyland, among other new experiences. Iger emphasized Disney’s commitment to creating exciting and innovative experiences for visitors.
In the second quarter, revenue for Disney’s domestic parks and experiences business increased by 7% to $5.96 billion, while international parks and experiences saw a growth of 29% to $1.52 billion. Operating income for domestic parks and experiences also showed positive results, with a 6% increase to $1.61 billion. The international parks and experiences segment experienced a significant 87% growth in operating income, driven primarily by Hong Kong Disneyland. Both the Walt Disney World Resort and Disney Cruise Line were highlighted as key contributors to growth within the domestic market.
Despite the overall positive performance of Disney’s Parks and Experiences division, challenges remain. Johnston mentioned cost inflation, specifically higher labor expenses, as a factor impacting results at Disneyland. However, these challenges are outweighed by the exciting growth opportunities presented by both Disney Cruise Line and the expansion of Disneyland. With a focus on guest satisfaction, innovation, and financial performance, Disney is poised to continue delivering memorable experiences for visitors and strong returns for shareholders.