Profits Are Up for The Walt Disney Company
The Walt Disney Company reported its second quarter earnings for the fiscal year 2013, and it was good news for the House of the Mouse. The company reported an overall profit of $1.5 billion, which is up 32 percent from the same period last year.
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Theme park and resort revenue increased 14 percent to $3.3 billion - a boost due in part to increased guest spending and attendance at the Walt Disney World Resort and Disneyland, in addition to the introduction of the Fantasy cruise ship. As a whole, the Disney Cruise Line carried more passengers than this time last year, thanks to the 4,000 passenger Fantasy.
The Disney resorts set new attendance records too. Combined domestic attendance at Walt Disney World and Disneyland was up by 8 percent, and guest spending at the parks increased 10 percent. Guest spending was higher due to higher average ticket prices, and increased food, beverage, and merchandise spending.
Walt Disney Company Chairman and CEO, Bob Iger
The Magic Kingdom - the world's busiest theme park - also set a single day attendance record during the 2013 Easter holiday, according to Chairman and CEO Bob Iger. The new Fantasyland expansion has increased traffic to the park, but also created extra room for the increase in crowds.
At Disney's international parks, attendance grew at Hong Kong Disneyland and guest spending increased at Disneyland Paris.
Opening Day Celebrations of New Fantasyland
And, despite the very disappointing performance of John Carter last year, the studios managed to increase revenue by 13 percent to $1.3 billion, thanks in part to theatrical successes such as Wreck-it-Ralph and Oz: The Great and Powerful. Disney's television enterprise - it's largest business - continue to succeed, posting an operating profit of $1.9 billion, up 8 percent from a year ago.
In a company press release Iger said, "Our results reflect our successful strategy, the strength of our brands and the value of our high-quality creative content, all of which continue to drive long-term growth and shareholder value."
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Charles wrote on Thu, 05/16/2013 - 13:19:
When I was there in April, it appeared there was no lack in spending. Restaurants were very busy and people were lined up to get into the parks. I so enjoyed myself and did not feel the prices were out of line for the value received. I do think a few more discounted Disney Hotels are needed. They did not look like they were filled and the cost of a room at the three hotels on the lake were way to high for the normal family trying to have a vacation.
Charles wrote on Thu, 05/16/2013 - 13:27:
I normally clarify myself but when talking rooms, I think there are enough hotels, but Disney needs to look at the cost per night or discount the Hotels they already have to make it easier for the normal family to stay. $300-500 rates are a little high. Also if you have a better rate people may stay a full 7-8 days which carry's profits to the restaurants, tickets and other purchases.
Jeffrey wrote on Thu, 05/16/2013 - 14:27:
To me, this article does not read as a success, but rather as a testament to the importance of getting a full story. At the same time that the WDC recognized these profits, they also summarily laid off nine full-time animators from the hand drawn animation department on the Burbank studio lot. All nine of these animators had been with the company for years and years, and were nearing retirement. Some of them had personally known Walt. And, Walt loved his animators. He knew he built his company, image, and reputation on these people. Yet, in an unforgivable cost cutting maneuver indicative of Bob Iger's Wall Street courting time at the helm, these people were let go because of Pixar's success at supplanting hand drawn animation, and to avoid their retirement packages. Also, recently the Oscar-winning creator of Merida in 'Brave' came out against Disney's makeover of her character to make Merida more princess-friendly for her crowning as the eleventh Disney Princess last week. She called the studio's efforts appalling and mercenary, ruining the very essence of Merida as a young woman whom girls of today could relate to, a figure of empowerment, rather than a girl waiting to be rescued from life by a prince on a stallion. But, princesses sell products. Furthermore, the record setting attendance in the theme park division seems a hollow achievement to anyone who has spent a day at Disneyland recently. I grew up with the park. I live in Orange County, and have been going regularly since 1969. There no longer seems to be a day when Disneyland isn't overcrowded. Parade ropes, crowd control, and refusal to limit capacity with an eye toward ensuring guest enjoyment over cattle herding has, on more than one occasion, sent me home early. Every time I attend with a large group of fellow Premium Annual Passholders, it is inevitable that our group will splinter as people run off to get a snack or do a bit of shopping. When this happens it is a crap shoot whether we will ever see them again that day, because the crowd control measures literally make it impossible to rejoin each other, even in the age of cell phones. No, it isn't possible for me to read this article as an endorsement of the WDC's success, but rather as an indictment of Bob Iger, and proof that those who said he was too mercenary to lead this company, and too eager to sacrifice Walt's vision to Wall Street's profitmongering, were justified.
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