Today's earnings call with CEO Bob Iger and CFO Hugh Johnston provided insights into Disney's Parks & Experiences segment, particularly regarding future growth, confidence in revenue projections, and new additions like Disney Treasure and Lightning Lane Premier. Here are the main takeaways:
Disney Confident in 6-8% Growth Projection for Experiences
- CFO Hugh Johnston reaffirmed the company's 6-8% growth guidance for Parks & Experiences in FY25.
- Strong Q1 results increased confidence in hitting these projections, despite hurricane-related losses and Disney Cruise Line pre-opening costs.
- Johnston emphasized that the second half of the year, particularly Q4, will have easier comparisons and stronger performance expectations.
Disney Treasure Off to a Strong Start
- Disney Treasure's launch exceeded expectations, with early guest feedback in line with the fleet's top-performing ships.
- The ship is already projected to be profitable in its first quarter of operation.
- This positive debut sets a strong foundation for future fleet expansion as Disney Cruise Line continues to grow.
Lightning Lane Premier Rollout Moving Slowly
- Disney is intentionally taking a slow and cautious approach to the rollout of Lightning Lane Premier.
- The goal is to ensure a strong guest experience for those purchasing the product while also balancing overall park operations.
- While still early, Disney is monitoring uptake and guest sentiment closely, with expectations that it will build over time.
Summer and Holiday Bookings Looking Strong
- Bookings for summer and the back half of the year remain positive compared to last year.
- While Disney is maintaining its financial guidance, the company feels good about guest demand and forward-looking park performance.
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