Parks and Resorts revenues for the fourth quarter 2018 increased 9%

Nov 09, 2018 in "The Walt Disney Company"

Posted: Friday November 9, 2018 12:16pm ET by WDWMAGIC Staff

The Walt Disney Company yesterday reported earnings for its fourth quarter, which saw the Parks and Resorts revenues for the quarter increase 9% to $5.1 billion, and segment operating income increase 11% to $829 million.

Attendance in the domestic parks was up 4% and per capita spending was up 9% - on higher admission, merchandise and food and beverage spending, and attendance increases. Resort occupancy was up 1% to 85%.

You can read the full report here, and the Parks and Resorts segment result below

Operating income growth for the quarter was due to an increase at our domestic operations. Domestic results reflected the comparison to the adverse impact of Hurricane Irma, which occurred in the prior-year quarter.

Higher operating income at our domestic operations was primarily due to increased guest spending and attendance, partially offset by increased costs. Guest spending growth was due to increases in average ticket prices for theme park admissions and cruise line sailings, food, beverage and merchandise spending and average daily hotel room rates. The increase in costs was primarily due to labor and other cost inflation, a special fiscal 2018 domestic employee bonus and higher charges for project abandonments.
Operating income at our international parks and resorts was comparable to the prior-year quarter as growth at Disneyland Paris and Hong Kong Disneyland Resort was offset by a decrease at Shanghai Disney Resort. Operating income growth at Disneyland Paris was due to an increase in average ticket prices while growth at Hong Kong Disneyland Resort was due to higher occupied room nights and attendance growth, partially offset by cost inflation. The decrease at Shanghai Disney Resort was due to lower average ticket prices, partially offset by increased attendance.

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GoofGoofNov 11, 2018

Seriously, or is that sarcasm? Which moves the needle more: Pixar Pier or Toy Story Land? My gut says the answer is neither ;)

MisterPenguinNov 11, 2018

Totally all attributable to Pixar Pier.

GoofGoofNov 11, 2018

I think there’s a disconnect between what people around here have been talking about as “numbers” at WDW being down leading to cost cutting and the numbers reported in a 10Q. The SEC document is always comparing year over year numbers. Attendance is up 4% vs the same quarter last year. Most companies have their own guidance and forecasted numbers for the current year. It’s possible that the forecast was for attendance to be up 6% or 8% vs last year when the actuals came in 4%. So it’s possoble that the numbers were up vs last year as reported in the 10Q and still down vs internal forecast. In my experience most corporate bonus programs are based on actuals vs forecast. If the numbers were slipping vs forecast it makes sense that management would cut costs and belt tighten to try to get closer to targets and of course improve their own bonuses. The other factor is we don’t have a breakdown of DLR vs WDW. It’s possible CA was driving more of the year over year gains.

winstongatorNov 11, 2018

I was curious as to how well the domestic attendance percent changes lined up with the TEA data (also what is on wikipedia). Disney reports fiscal years, while TEA is calendar years, so there's the initial error of not measuring the same thing. However, the percent changes in the TEA data track the annual report data closely. The biggest discrepancy is 2017, but that is likely due to TEA including 3 more months of Pandora driven attendance (Oct-Dec 2017), where Disney's fiscal year ended Sept 30.

MickeyMinnieMomNov 11, 2018

Amazing how little traffic a thread like this gets since results are good... ah... the internet... :)

winstongatorNov 11, 2018

They've brought up the Jan-Mar quarter, but the summer has lagged. Whether general travel patterns or things Disney has done has shifted the relative 'down time' quarter from Jan-Mar to Jul-Sept. The overall variation by quarter is roughly constant, except for being down a little in 2015 which was a big attendance year.

MickeyMinnieMomNov 10, 2018

They had storm impact this year as well, just less so, correct?

MickeyMinnieMomNov 10, 2018

I don’t get this logic at all.

winstongatorNov 10, 2018

Having one quarter of the year seemingly lag tells me they aren't doing a good enough job of reducing seasonality. This info combined with the 'soft attendance' would lead me to believe that they will do something to bump summer attendance. It will have to be something that doesn't bleed into Galaxy's Edge opening. Will the sweet FL resident deals on 3 & 4 day tickets come back for a period?

MickeyMinnieMomNov 10, 2018

Which makes sense as they deliberately reduce seasonality with pricing, etc. Not surprising to me.

MisterPenguinNov 10, 2018

Transcript of the call now available: https://www.thewaltdisneycompany.com/wp-content/uploads/2018/11/q4-fy18-earnings-transcript.pdf

winstongatorNov 09, 2018

I'll edit the post - quarterly earnings for the parks & resorts segment by year. The 4 lines are the different quarters. The summer quarter where there was 'soft attendance' has been the slowest growing over the past 5 years.

Kevin_WNov 09, 2018

Sorry, what is that a graph of?

DoubleJ21Nov 09, 2018

Just for curiosity's sake, I checked out what Greenfield was saying. I can't with him anymore. I can only laugh my butt off!