Income, income recovery in Disney theme parks

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10 November 2021, 15:18 About a third of Walt Disney World visitors switch to Disney Genie Plus, Disney CEO Bob Chapek said today. In addition, per capita customer spending is up 30% from pre-pandemic levels, company executives said.

Disney reported $ 5.450 billion in revenue for its Parks, Experiences and Products segment in the fourth quarter of 2021, a 99% increase from the same period in 2020. However, this year’s revenue has remained. less than the $ 6.655 billion in revenue declared by Disney for its parks. segment for the last quarter of 2019, before the pandemic.

Fleets segment operating profit was $ 640 million in the fourth quarter, up from a loss of $ 945 million in the same period in 2020, but down from a revenue of $ 1.381 billion for the same period in 2019.

For the year, Disney Parks, Experiences and Products reported $ 16.552 billion in revenue in its 2021 fiscal year, down 1% from fiscal 2020. Yet operating income is up 4% , at $ 471 million, for 2021 compared to 2020.

Disney theme parks have been closed for a significant portion of the company’s 2020 and 2021 fiscal years. In fiscal 2019, before the pandemic forced the closure of parks around the world, the Parks, Experiences and Products segment reported revenue of $ 26.225 billion and operating profit of $ 6.758 billion.

“Attendance trends continued to strengthen in our national regions, with Walt Disney World attendance in the fourth quarter increasing by double digits from the third quarter and Disneyland attendance continuing to strengthen significantly since its reopening in the third quarter. “said Chief Financial Officer Christine McCarthy. “Customer spending in our national parks also continued its strong trend with per capita spending in the fourth quarter up almost 30% from fiscal 2019.”

“We expect per capita spending in our national parks in FY2022 to continue to significantly exceed pre-pandemic levels, and we are especially encouraged by the early response we are seeing at Genie at Walt Disney World.” said McCarthy.

“The majority of Genie and Genie Plus users said it improved their overall park experience, with almost a third of park visitors switching to Genie Plus,” said CEO Bob Chapek. “We are very encouraged by what we are seeing and look forward to launching Disney Genie at Disneyland very soon.”

Disney Genie Plus is a $ 15 per person per day upgrade at Walt Dusney World Resort, while the service will cost $ 20 per person per day at Disneyland. For more information on the service, please read our guide, How to Use Disney Genie Plus.

Regarding Disneyland’s new annual pass system, Chapek added that around 40% of current sales of Disneyland’s new Magic Key passes are to new pass holders, and most of the Magic Key Holders bought the top two levels, selling the best Dream Key in just two months. Chapek also noted that the upcoming Star Wars Galactic Starcruiser experience at Walt Disney World has used up its first four months of operation. The Star Wars-themed hotel will open next spring.

As for Disney Cruise Line, McCarthy said, “Our entire fleet has returned to sea, with guest ratings as strong as pre-pandemic levels, despite new health and safety protocols. that we expected social distancing restrictions on our vessels to remain in place for at least the first half of fiscal 2022, the booked occupancy rate on our vessels for the second half is already above the ranges historic, at significantly higher prices. And we’re delighted that the Disney Wish is leaving in June 2022, with the inaugural season already nearly 90% booked. “

Finally – and not directly related to the parks but perhaps interesting, Chapek said the company plans to get more involved in the sports betting business. He said Disney research now shows that the company entering the sports game would strengthen the ESPN brand without harming the Disney brand. It’s a huge cultural shift for The Walt Disney Company, which had positioned itself as firmly opposed to any connection to gambling in the past.

Update: I missed this on the investor call because I was updating this post, but later figured it out when reading the transcript. McCarthy was asked about inflationary pressures, and she replied:

“Last week I was talking to our senior Parks team about things we could do there. There are a lot of things worth talking about, you know, we can adjust providers; we can replace the products. is probably good for some people’s waistlines. We can look at the prices if necessary, but we’re not going to go straight ahead and increase the prices. “

The “waistline” crack isn’t going to play well, is it?

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