Cruise line, theme parks propel Disney profit

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Cruise line, theme parks propel Disney profit

Saw this over on the Orlando Sentinel online. Looks like a very good end of year for Disney:

A new cruise ship and improving theme park trends helped drive double-digit profit growth for the Walt Disney Co. during the final three months of 2011.

The Burbank, Calif.-based entertainment company said Tuesday that it earned $1.5 billion during the three months that ended Dec. 31, a 12 percent increase from a year ago. Total sales inched up 1 percent to $10.8 billion for the quarter, the first of Disney's fiscal year.

Disney's theme-park division, often viewed as a barometer of national consumer spending, set the pace. Operating profit at Walt Disney Parks and Resorts jumped 18 percent, to $553 million, on sales that rose 10 percent, to $3.2 billion. Both increases were the biggest at any of Disney's five main segments, which also include television networks, a movie studio, consumer products and interactive media.

Full article here.

Brad's picture
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Interesting that cruising contributes so much to their bottom line. I wouldn't have expected that.

Vettelover's picture
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Brad wrote:
Interesting that cruising contributes so much to their bottom line. I wouldn't have expected that.

Brad I agree about the Return On Investment with the cruise lines ESPECIALLY with the price they had to pay for those two new ships. As long as my Disney shares keep going UP I am really happy. awesome

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Brad's picture
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Yeah I suppose it wouldn't be worth building those giant ships if they didn't churn out some cash.

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Disney hasn't dumbed down their cruises like a lot of other lines have recently, and their prices reflect that. As far as taking a cruise goes, Disney is EXPENSIVE. However, I haven't found it more expensive than a trip to WDW if you stay and eat deluxe. So people who know the level of quality and service that Disney offers feel comfortable cruising with them. The cruise industry is the fast growing travel industry segment out there right now. I would go as far as to say there are folks that only cruise because of the Disney Line.

You can go on a 7 day with Carnival or Royal Caribbean with what a 3 day Disney Cruise costs. The biggest difference I can see is class. CCL and RCCL cater to those folks that want to have a beer budget, sloppy party cruise. While Disney continues to offer a high quality classic style cruise, that caters to both families and adults only. CCL, RCCL, NCL don't have the exclusive areas that Disney does away from kids. Many people still want to vacation with some level of elegance, and Disney has that in spades, not to mention the largest state rooms at sea.

It doesn't surprise me at all how much it's adding to the bottom line.