Disney cruises its way to a £430m dividend
AMERICAN media giant Disney collected a £430 million dividend last year from the UK-registered company which operates its cruise ships.
Disney has four vessels with passengers entertained by costumed cartoon characters and screenings of Disney musicals.
The cruises are operated by Disney’s London-based Magical Cruise Company subsidiary, which earns revenue from the sale of cabin tickets and from onboard sales.
Its latest accounts, for the year to September 30, 2017, show revenues rose 5.7 per cent to a record £1.1 billion. Net profits hit a record high of £224.2 million.
The cruise division has now made a total net profit of £667.6 million since its first ship set sail in 1998. The £430 million dividend payment approved in January 2018 followed a £155 million dividend the previous year. That took the total payout returned to the parent company to £585 million.
Terri Schultz, former vice president of New Vacation Operations and Disney Cruise Line Finance, said: ‘Revenue and operating income increased year over year primarily due to higher average ticket prices for sailings.’
The UK company is one division of Disney’s cruise line. Disney is still a minnow of a cruise business. Industry monitor Cruise Market Watch says it has just 2.3 per cent of the market for passengers.