Disney Parks’ Profit Jumps As International Recovery Takes Hold

Disney Parks & Experiences generated the bulk of parent profits and about a third of total revenue last quarter with a noteworthy swing in international from Hong Kong to Shanghai to Paris.

Total sales at the divison called Disney Parks, Experiences and Products jumped 17% to $7.8 billion, the company said in its latest financials. Operating income rose 23% to $2.2 billion for Disney’s fiscal Q2. Internationally, parks swung to $156 million in operating income from a $268-million loss the year earlier, and revenue more than doubled to $1.2 billion from $574 million.

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International parks means Shanghai Disney, Disneyland Paris and Hong Kong Disneyland, which all saw attendance up and spending rise due in part to higher ticket prices but also to food, beverage and merchandise sales. Also, Hong Kong had more operating days. The year-earlier quarter was still hit by Covid-related closures.

At domestic parks, the company noted growth at Disneyland largely offsetting softer operating income at Walt Disney World, where costs were higher (inflation, new guest offerings, increased depreciation) although attendance grew. WDW will certainly be a topic on a post-earnings call this afternoon with Disney locked in a bitter legal battle with the state of Florida. Gov. Ron DeSantis’ and lawmakers have canceled development deals and stripped the company of a longstanding special automomous district in and around the park.

Domestic Parks & Experiences saw sales rise 14% to $5.6 billion for the quarter ended April 1 with operating income up 10% at $1.5 billlion.

Parks have been an ongoing boon for the Mouse as it deals with growing pains in streaming and a secular decline in linear television. Revenue and profit were up, respectively, 21% and 25% in the previous quarter. International operating income was $79 million on revenue of $1.1 billion.

Parks, Experiences & Products includes consumer products, which dipped on lackluster merch sales based on Star Wars, Spider-Man, Frozen and Avengers, Disney said. Disney Cruise Line got a bump from its newest ship, the Disney Wish.

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