Disney reported another strong quarter for its theme parks division.
What You Need To Know
- Disney's Parks, Experiences and Products reported $7.4 billion in revenue in third quarter
- Executives attributed that growth to increased demand and attendance at its domestic parks
- The company opened the new Guardians coaster at EPCOT and debut its new Disney Wish cruise ship during the quarter
In an earnings report released Wednesday, the company said its Disney Parks, Experiences and Products division generated $7.4 billion in the third quarter. That was up 70% from the $4.3 billion generated in the same time last year, when some Disney parks were still operating with COVID-19 restrictions.
The division’s operating income also increased $1.8 billion to $2.2 billion in the quarter.
Disney attributed the growth to increases in attendance, hotel occupancy, cruise ship sailings and guest spending.
In an earnings call after the results were released, Disney CEO Bob Chapek said that demand at the company’s domestic parks—Walt Disney World and Disneyland Resort—remains strong as it continues to recovery from the pandemic.
Although Disney executives didn’t share specific attendance numbers, McCarthy said that visitation at the domestic parks was tracking ahead of 2019 levels on “many days."
The strong demand also extended to the resort hotels at its domestic parks, with occupancy at 90% in the third quarter. McCarthy added that future bookings are “roughly” in line with pre-pandemic trends.
Disney executives also mentioned the park reservation system, which requires visitors to make a reservation in advance to visit the parks. McCarthy said the focus is on improving the guest experience through the system, which allows them to manage capacity.
“We are still seeing demand in excess of the reservations we’re making available for our guests,” McCarthy said.
Chapek noted the “flexibility” the reservation system gives them.
“We have a reservation system which now enables us to essentially, real-time on the fly, to change whatever factors we need in terms of our ticket packaging that we want,” he said. “Years ago, we didn’t have that.”
Chapek highlighted three milestones for the parks division during the quarter: the opening of Guardians of the Galaxy: Cosmic Rewind at EPCOT, the launch of the Disney Wish cruise ship and the opening of Avengers Campus at Disneyland Paris.
In addition to new attractions, Disney also brought back traditional character meet-and-greets at its parks.
Despite strong results in the parks division, Disney executives said that international visitation still has not fully recovered from the pandemic.