Disney CEO Bob Iger
says more international theme parks are an “inevitability” after the division’s revenue jumped 13 percent in the second quarter.
Theme parks and resorts are still helping fuel growth for Walt Disney Company.
And as the company looks to expand further, CEO Bob Iger said Tuesday there was an “inevitability” the company will build more international parks even if it’s not in the immediate future.
Iger spoke during a post-earnings call after Disney reported that the company’s theme parks and resorts division’s revenue jumped 13 percent to $4.9 billion in the second quarter. Its operating income rose 27 percent to $954 million, its highest quarterly growth in five years.
Overall, the company reported $14.5 billion in revenue and net income of $2.9 billion.
“Driven by strong results in our parks and resorts and studio businesses, our Q2 performance reflects our continued ability to drive significant shareholder value,” Iger said in a statement.
U.S. theme-park attendance rose 5 percent and hotel occupancy jumped 2 percentage points to 90 percent, said Disney chief financial officer Christine McCarthy.
The rise came in part from the timing of Easter — which had a $47 million impact on operating income, McCarthy added. The week before the holiday was the final week of the quarter in March.
In addition, the higher operating income happened because guests were spending more, attendance was on the rise at Walt Disney World Resort and higher sponsorship revenue, the company reported, noting daily average room rates and ticket prices were higher.
In February, Walt Disney World and Disneyland both raised ticket prices. A peak oneday adult ticket for Magic Kingdom now costs $129, a $5 increase. The company also increased prices for parking and annual passes.
At the company’s international properties, Disneyland Paris, celebrating its 25th anniversary, also helped drive attendance and guest spending, McCarthy said.
It helped offset declines from Shanghai Disney Resort, which was hurt with lower attendance because of bad weather, although it rebounded in March, she added.
Toy Story Land opened in Shanghai on April 26 to good reviews, setting the stage for Orlando’s new land when it opens next month, Iger said.
“It makes a dent in the scale of the park,” Iger said of Shanghai’s version, which is smaller than Orlando’s 11-acre expansion at Hollywood Studios.
Comcast Corp. is mulling another bid for 21st Century Fox assets, a move that could upend the Walt Disney Co.’s efforts to buy much of Fox from Rupert Murdoch.
Late Monday, Reuters reported that Comcast was lining up financing to make an all-cash bid for Fox’s vaunted TV and movie studio, FX, National Geographic channels, nearly two dozen regional sports networks and control of the online streaming service Hulu.
A Comcast bid, should it materialize, would eclipse Disney’s $52.4 billion proposal.
A new Comcast bid would be a direct challenge to Iger, whose effort to buy the Fox assets was seen as a bold move to cement his legacy and secure Disney’s future. The Burbank entertainment giant now might have to raise its bid considerably for Fox.