Disney Chief Financial Officer Christine McCarthy announced that capital expenditures, which include the costs for building and maintaining physical properties, will be reduced by $700 million across Disney Parks within the United States.
While $6.7 billion was originally budgeted for capital expenditures this fiscal year, McCarthy announced that this figure has been cut to $6 billion. The Walt Disney Company CFO did not elaborate on which projects might be affected by the budget cut, but said that the company will spend less than what they had originally forecasted “primarily due to decreases in CapEx at our domestic parks, reflecting, in part, from timing shifts.”
The originally budgeted $6.7 billion for capital expenditures represented a 37% increase from last fiscal year, a major jump that sparked optimism for new attractions and well-maintained structures. Overall, the Walt Disney Company still intends to spend big on capital expenditures outside of the U.S. Parks. In today’s earnings report, Disney reported an overall companywide increase in capital expenditures from $1 billion to $1.2 billion, stating that the increase is “primarily due to cruise ship fleet expansion.”
This fiscal year, major capital expenditures within domestic Disney Parks included the completion of TRON Lightcycle / Run, the retheming of Splash Mountain to Tiana’s Bayou Adventure, and the construction of Journey of Water Inspired by Moana at the Walt Disney World Resort. Disneyland Resort’s reimagining of Mickey’s Toontown and the completion of Mickey & Minnie’s Runaway Railway also contributed to the funds used for capital expenditures this fiscal year.