Want to know how well Disney Parks are doing financially? Check the company’s earnings report to get some fascinating insights.
Late on Wednesday, November 10, 2021, Disney announced its fourth-quarter earnings. Overall, the company did not meet Wall Street estimates. The company’s overall earnings were 37 cents per share compared to analysts’ expectations of 51 cents per share. In the same way, revenue came up short of expectations: $18.53 billion actual vs. $18.79 expected.
Let’s take a look at some information specifically related to Disney parks:
Theme Park Revenue
While Disney Parks revenue is still less than what it was before the start of the COVID-19 pandemic, the parks did double their revenue from the fourth quarter of 2020 to 2021.
A year ago, the Disney Parks, Experiences, and Products division made $2,733,000 in revenue, which basically doubled to $5,450,000 this year.
Disney Genie+
Bob Chapek, Disney’s CEO, said that the majority of guests reported that Disney Genie+ improved their experience, and nearly one in three guests paid an additional $15 per person per day to get Genie+.
Guest Spending Up
The company reported that per guest spending is up a whopping 30% in the final quarter of 2021 when compared to pre-pandemic 2019 numbers – a huge increase.
Food Cuts Possible
Disney’s Chief Financial Officer, Christine McCarthy, said that the company could “cut portion size” of foods served in the parks as one way to cut costs.
Park Investments Down – Media Investments Up
Disney reported that capital investment decreased from $4.0 billion to $3.6 billion. The company has canceled or suspended many projects, including the new Festival Center at EPCOT and the Reflections Resort at Fort Wilderness.
However, the company is spending more money on Disney Media and Entertainment Distribution. Investment there increased by $79 million. CNBC reported that the company said, “Q4 will be the first time in Disney+ history that we plan to release original content throughout the quarter from Disney, Marvel, Star Wars, Pixar, and Nat Geo, all in one quarter. This includes highly anticipated titles such as Ms. Marvel, and Pinocchio.”
Surprised that one-third of guests are buying Disney Genie+?