Disney reported better than expected 3rd quarter earnings on Wednesday, led by the Disney Parks continued growth.
Attendance at the Walt Disney World and Disneyland Resort came close to 2019 levels, but per capita spending is up 40%. The good news for Disney carries over to their Hotels as occupancy in the third quarter was 90%, and future bookings are in line with pre-pandemic levels.
Speaking at the Disney Third Quarter Financial Results Conference Call, CFO Christine McCarthy commented on attendance and revenues:
“Demand at our domestic parks continues to exceed expectations with attendance on many days tracking ahead of 2019 levels. Our continued focus on improving the guest experience through the use of our reservation systems to purposefully manage capacity versus simply increasing volume has the added benefit of improving yield and optimizing overall economics. So, even while the average daily attendance at our domestic parks across the first recordings of this fiscal year was slightly below 2019, we have delivered significantly higher revenue and operating income over that same time period. This approach also provides flexibility. With levels we can adjust if demand were to shift. Per capita spending at our domestic parks also remains strong. Increasing 10% versus Q3 of fiscal 2021 and over 40% versus fiscal 2019.”
Disney Parks, Experiences and Products revenues for the quarter increased to $7.4 billion compared to $4.3 billion in the prior-year quarter. Segment operating income increased $1.8 billion to $2.2 billion compared to $0.4 billion in the prior-year quarter. Park attendance, occupied room nights and cruise ship sailings are also all up significantly over Q3 2021 and the past few years.
Disney touted “the introduction of Genie+ and Lightning Lane” at the theme parks and Disneyland Paris being open for the entire quarter, as opposed to a mere 19 days in the equivalent quarter of 2021 for its increased success.