Disney Parks, Experiences and Products reports $7.78 billion in revenue during the second quarter of 2023, which ran from early January to late March.
During this time, the Disney 100 Years of Wonder celebration kicked off at Disneyland Resort and began at Walt Disney World Resort. With the celebration came the debut of “Wondrous Journeys” at Disneyland and “World of Color – ONE” at Disney California Adventure.
At Walt Disney World, the 50th anniversary celebration officially ended, and the hugely popular “Happily Ever After” fireworks returned with new Main Street, U.S.A. projections to Magic Kingdom. “Harmonious” at EPCOT ended and “EPCOT Forever” has temporarily returned. A new 100th anniversary nighttime spectacular will debut later this year. Journey of Water Inspired by Moana and the remainder of the World Celebration area are also nearing completion.
Tokyo Disney Resort began their 40th anniversary celebrations in April with special entertainment, food, and decorations.
Disney Parks Earnings Report
The earnings report reads,
Disney Parks, Experiences and Products revenues for the quarter increased 17% to $7.8 billion and segment operating income increased 23% to $2.2 billion. Higher operating results for the quarter reflected increases at our international and domestic parks and experiences businesses, partially offset by lower results at our merchandise licensing business.
Higher operating results at our international parks and resorts were due to growth at Shanghai Disney Resort, Disneyland Paris and Hong Kong Disneyland Resort. The increase at Shanghai Disney Resort was due to higher volumes and guest spending growth. Higher volumes were attributable to increased attendance while guest spending growth was due to increases in average ticket prices and food, beverage and merchandise spending. The increase in operating results at Disneyland Paris was due to volume growth, which was attributable to higher attendance, and increased guest spending, partially offset by higher costs. Guest spending growth was due to increases in average ticket prices, average daily hotel room rates and food, beverage and merchandise spending. The increase in costs was primarily due to inflation and higher costs associated with new guest offerings. Higher results at Hong Kong Disneyland Resort reflected more operating days in the current quarter due to COVID-19-related closures in the prior year quarter.
Operating income growth at our domestic parks and experiences was attributable to an increase at Disney Cruise Line, partially offset by the comparison to a real estate gain in the prior-year quarter. Higher results at Disney Cruise Line were due to an increase in passenger cruise days including the addition of the Disney Wish, which launched in the fourth quarter of the prior year, partially offset by higher costs associated with our ongoing fleet expansion.
Results at our domestic parks and resorts were slightly unfavorable to the prior-year quarter, as a decrease at Walt Disney World Resort was largely offset by growth at Disneyland Resort. The decrease at Walt Disney World Resort was due to higher costs, partially offset by increased volumes. Higher costs reflected cost inflation, increased expenses associated with new guest offerings and higher depreciation.
The increase in volumes was due to attendance growth and higher occupied room nights. Increased operating income at Disneyland Resort resulted from growth in attendance and guest spending, partially offset by higher costs. Higher guest spending was due to increases in average ticket prices and average daily hotel room rates. The increase in costs was primarily due to higher operations support costs and increased costs associated with new guest offerings.
The decrease in merchandise licensing operating income included lower revenue from merchandise based on Star Wars, Spider-Man, Frozen and Avengers.
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