The Walt Disney Company today reported earnings for its fourth quarter ended September 30, 2023.
Revenues for the quarter ($21.24 billion) and year grew 5% and 7% compared to the prior-year quarter and prior year, respectively. Disney’s experiences division, which includes the parks, saw revenues increase 13% to $8.16 billion. Domestically, experiences revenues were $5.38 billion, an increase of 7% over the same quarter in 2022.
"Our results this quarter reflect the significant progress we've made over the past year," said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. "While we still have work to do, these efforts have allowed us to move beyond this period of fixing and begin building our businesses again. We have a solid foundation of creative excellence and innovation built over the past century, which has only been reinforced by the important restructuring and cost efficiency work we've done this year, and we're on track to achieve roughly $7.5 billion in cost reductions. Combined with our portfolio of valuable businesses, brands and assets – and the way we manage them together – Disney has a strong hand that differentiates us from others in our industry.
"As we look forward, there are four key building opportunities that will be central to our success: achieving significant and sustained profitability in our streaming business, building ESPN into the preeminent digital sports platform, improving the output and economics of our film studios, and turbocharging growth in our parks and experiences business. We have already made considerable advancements in these four areas and will continue to move forward with a sense of purpose and urgency, and I'm bullish about the opportunities we have before us to create lasting growth and increase shareholder value."
New Reporting Structure
This is the first quarter that Disney is using its new financial reporting structure, entertainment, sports, and experiences. Entertainment contains all of Disney's streaming and media operations, sports includes ESPN, and experiences includes the company's theme parks, hotels, cruise line, and merchandising.
Results from the Parks
Experiences operating income increased by over 30% versus the prior-year quarter, with year-over-year growth across all international sites, Disney Cruise Line, Disney Vacation Club, and Disneyland Resort. At Walt Disney World, Disney says it continues to manage against wage inflation and challenging comparisons to the prior year from the 50th-anniversary celebration.
Disney's domestic parks and experiences reported an increase in operating income, thanks to significant growth at the Disney Cruise Line and Disney Vacation Club, particularly from sales at The Villas at Disneyland Hotel. However, this growth has been partially offset by decreased results at other domestic parks and resorts. Walt Disney World Resort experienced a decline, primarily due to higher costs from accelerated depreciation after the closure of the Star Wars: Galactic Starcruiser attraction and inflation. Additionally, a drop in the average daily hotel room rates led to lower guest spending.
Disneyland Resort witnessed growth with higher attendance and increased guest spending, which arose from a hike in average ticket prices, despite facing higher costs due to inflation.
Internationally, Shanghai Disney Resort enjoyed higher operating results, driven by increased ticket prices and a surge in attendance. Hong Kong Disneyland Resort also saw a rise in operating income, benefiting from guest spending growth linked to higher ticket prices and increased attendance, along with more occupied room nights. The resort was open for 81 days in the quarter, an increase from 65 days in the same period the previous year, even as new guest offerings and inflation contributed to higher expenses.
View the full Q4 2023 earnings report.
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