Yesterday was the quarterly earnings call for Disney and among the information it was revealed that the theme park earnings increased 5% reaching nearly $6.2 billion and beating Wall Street estimates.
Theme park operating income did rise 15% as well to $1.5 billion.
Park attendance is up at United States Disney parks by 1% and resort hotel occupancy also increased.
It could be the specials that Disney has been releasing lately, but most likely it’s the price increase on tickets, food and merchandise. Disney has raised the ticket prices again ans started the day by day pricing. Tickets reached up to $159 per day around the winter holidays.
Disney also believes that’s the cause:
“Guest spending growth was primarily due to increases in average ticket prices and food, beverage and merchandise spending.”
Bob Iger, Disney CEO, has previously mentioned their strategy to use higher prices as a form of attendance control.
“It’s not just about raising prices. It’s about being really smart with it.” -Bob Iger
According to the Orlando Sentinel: “Overall, Walt Disney Co. revenue increased 3 percent compared with the same time period last year to $14.92 billion. Analysts had been expecting a small decline, Reuters reported.
Earnings per share fell 13 percent to $1.61. Reuters reported that it beat analyst estimates of $1.58, according to IBES data from Refinitiv.”
The parks are performing well, but, the company’s studio entertainment division (it produces and releases the films) saw a 21% decline.
Lately Disney films have not been performing very well, of course that has changed with Captain Marvel and Avengers: End Game.
The value of Disney stocks are down from $1.84 a year ago, but stocks are still beating estimates, but they did fall a bit for now. But, hopefully with the success of Avengers: End Game and the upcoming opening of the Star Wars: Galaxy’s Edge parks, there might be even better returns for Disney on the horizon.