Parks and Resorts was Disney’s only growing segment
Walt Disney’s (DIS) Theme Parks business posted strong performance results in the three months ending December 2017 (the company’s fiscal 1Q18).
Disney’s Parks and Resorts segment recorded revenues of $5.2 billion for the quarter, which marked an increase of 13% YoY (year-over-year). This was Disney’s only growing segment in fiscal 1Q18, as all of its other segments were either flat from one year ago or fell as much as 2.0%.
Overall revenues up 4.0%
While its other segments sank or stayed flat, the strong performance in the theme park business led Disney to register overall revenue growth of 4.0% YoY at $15.4 billion.
In the theme park business, Disney competes with Six Flags Entertainment (SIX), SeaWorld Entertainment (SEAS), Comcast (CMCSA) and Cedar Fair (FUN). At Comcast and Cedar Fair, revenues rose 4.3% and 18.9% YoY, respectively, in 4Q17. Six Flags posted revenue growth of 4.0% YoY in 3Q17, while SeaWorld’s revenue fell 9.8% YoY in 3Q17.
Growth drivers in the theme park business
Gains in Disney’s Parks and Resorts business, wherein operating profits increased 21% YoY to ~$1.3 billion, were driven by factors such as higher average ticket prices and increases in attendance at theme parks. The company also benefited from guests spending more on items such as food and drinks during their theme park visits and stays at hotels.
With the recent theme park ticket price increases, we’ll be looking to see how this move will impact the performance of Disney’s Parks and Resorts business in coming quarters.