Walt Disney Company First Quarter 2020 Earnings report shows increased spending at the parks and resorts and slight attendance gains

Feb 04, 2020 in "The Walt Disney Company"

Walt Disney Company reported its quarterly earnings for its first fiscal quarter of 2020 today, showing continued revenue gains in the parks and resorts of 10%, and operating income up 6%.

Growth at the domestic parks and resorts was due to higher guest spending and, to a lesser extent, increased attendance, partially offset by higher costs.

Attendance at the domestic parks was up 2%, with guest spending per capita up 10%.

In the resort hotels, per room spending was up 4%, and occupancy levels were at 92%. Looking ahead, resort hotel reservations are up 4% compared to this time last year.

“We had a strong first quarter, highlighted by the launch of Disney+, which has exceeded even our greatest expectations,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “Thanks to our incredible collection of brands, outstanding content from our creative engines and state-of-the-art technology, we believe our direct-to-consumer services, including Disney+, ESPN+ and Hulu, position us well for continued growth in today’s dynamic media environment.”

You can read the full report, and see below for the Parks, Experiences and Products segment.

Parks, Experiences and Products
Parks, Experiences and Products revenues for the quarter increased 8% to $7.4 billion, and segment operating income increased 9% to $2.3 billion. Operating income growth for the quarter was due to increases at merchandise licensing and domestic parks and resorts, partially offset by lower results at our international parks and resorts.

Higher merchandise licensing results were due to an increase in revenue from sales of merchandise based on Frozen, Star Wars and Toy Story, partially offset by lower sales of merchandise based on Mickey and Minnie.

Growth at our domestic parks and resorts was due to higher guest spending and, to a lesser extent, increased attendance, partially offset by higher costs. Guest spending growth was primarily due to higher average ticket prices and an increase in food, beverage and merchandise spending. Higher costs were due to new guest offerings, driven by Star Wars: Galaxy’s Edge, and the impact of wage increases for union employees.

The decrease in operating income at our international parks and resorts was due to lower results at Hong Kong Disneyland Resort, partially offset by growth at Shanghai Disney Resort. Lower results at Hong Kong Disneyland Resort were due to decreases in attendance and occupied room nights reflecting the impact of recent events. At Shanghai Disney Resort, higher operating income was driven by an increase in attendance.

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Article Posted: Feb 04, 2020 / 4:36pm ET