10 May 2017
Double digit growth for Disney as Shanghai boosts results for quarter
BY Tom Anstey
Disney’s parks and resorts have enjoyed another strong quarter, with the company experiencing double digit growth in operating profits to US$750m (€689.5m, £579.2m).
The boost represented a 20 per cent increase on last year’s Q2 profits (US$624m, £481.9m, €574.1m), and has been attributed to the opening of Shanghai Disney Resort, which opened in Q3 2016.
Overall, Disney’s parks and resorts division recorded revenue for the quarter of US$4.3bn (€3.95bn, £3.3bn) – a 9 per cent increase on the same period for 2016 when it earned US$3.93bn (€3.6bn, £3bn).
In a trend impacting the whole of the attractions sector, the timing of the Easter holiday – which fell outside of the first three months of the year – had an effect on the quarterly the results.
Shanghai aside, operating income growth at Disney’s domestic parks also increased, with the results driven by increased attendance and spend on food and beverages (F&B), as well as increased income from Disney Springs.
However, revenue growth was knocked by higher labour costs, marketing expenses and unspecified efficiency initiatives.
“Our continued strong performance is a direct result of our proven strategic focus on great branded content, innovative technology and global growth,” said Disney chair and CEO, Bob Iger.
“We’re pleased with our results in Q2 and remain confident in our ability to continue to deliver significant shareholder value over the long term.”
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