Understanding Disney’s Parks and Resorts Business



Parks represent 34% of revenues

As Walt Disney (DIS) works to upgrade its Magic Kingdom Park at Walt Disney World Resort in Florida, it will be instructive for us to examine the position that the parks and resorts business holds for the company.

In fiscal 3Q17 (June quarter), Disney’s parks and resorts business brought in revenues of $4.9 billion, implying a 12% YoY (year-over-year) rise. The business contributed 34.4% of overall revenues, up from 30.8% of overall revenues in fiscal 3Q16.

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Parks and resorts operating income

Disney’s Parks and Resorts segment reported operating income of $1.2 billion in 3Q17, up 18% from fiscal 3Q16. Parks and resorts supplied 29.1% of the overall operating income in the latest quarter, up from 22.3% of operating profits one year previously.

Disney has stated that its international operations were responsible for the increase in parks and resorts revenues and profits. Those overseas theme parks have attracted more guests and have seen higher guest spending.

Overall results

Disney generated overall revenues of $14.2 billion in fiscal 3Q17, down slightly from $14.3 billion one year earlier. Its operating income came to $4.0 billion for that quarter, or 10% lower YoY. The company posted adjusted EPS (earnings per share) of $1.58, which was 2% lower YoY.

With the ongoing expansion and upgrade of Disney World Resort, Disney hopes to gain a competitive edge against rivals Comcast (CMCSA), Six Flags Entertainment (SIX), Cedar Fair (FUN), and SeaWorld Entertainment (SEAS) in the theme park business.


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