ORLANDO, Fla. — Disney’s theme park division saw revenue soar in the fourth quarter of 2022, according to an earnings report released Tuesday.
What You Need To Know
- Disney's theme park business continues to boom
- The parks reported $7.4 billion in revenue in the fourth quarter; $28.7 billion for the fiscal year
- Growth was due to increased attendance and consumer spending
The Parks, Experiences and Products division — which also includes Disney’s cruise line and merchandise business — generated $7.4 billion in revenue, up 36% from the same period last year.
Domestic parks — Walt Disney World Resort in Florida and Disneyland Resort in California — brought in $5 billion, a 44% increase, while the international parks reported $1.1 billion, according to the report.
Operating income for the parks division rose to $1.5 billion, more than double the prior year. Disney attributed that growth to increases in attendance and guest spending at its domestic parks as well as bookings on its newest cruise ship, the Disney Wish. During the investors call Tuesday, Disney CFO Christine McCarthy said that occupancy for the Wish has continued to exceed 90%. The ship launched in July with several new entertainment offerings, including a Star Wars-themed bar, a Marvel-inspired dining experience and the AquaMouse.
Genie+, the paid skip-the-line service, has also been a contributing factor in revenue increases at the park. The service, which was introduced last year, recently implemented variable pricing.
Guest spending growth was due to an increase in average per capita ticket revenue driven by the introduction of Genie+ and Lightning Lane in the first quarter of the current fiscal year,” Disney said in the earnings report.
McCarthy said the domestic parks delivered “significant” year over year revenue growth despite “an adverse impact of approximately $65 million to segment operating income from Hurricane Ian.”
Disney World theme parks were closed for two days because the storm. Earlier in the investors call, Disney CEO Bob Chapek thanked cast members in Florida who “kept guests safe and entertained” during the storm.
In addition to its fourth quarter earnings, Disney also released its results for the fiscal year. Revenue for the parks division was $28.7 billion, up 73% from the previous fiscal year, while operating income increased $7.9 billion for the fiscal year.
Looking ahead, Disney is set to kick off its company-wide 100th anniversary celebration in January. That same month, it will open Mickey & Minnie’s Runaway at Disneyland in California. A version of the attraction opened at Disney’s Hollywood Studios in March 2020. And in the spring, the company plans to open TRON Lightcycle Run at Magic Kingdom.