Disney’s experiences division, which encompasses theme parks, cruise lines, resorts and consumer products, achieved record quarterly revenue during fiscal third quarter results announced Wednesday. The segment generated nearly $10 billion in revenue, representing a 10% increase compared to the same quarter one year prior. Operating income for the division surpassed $3 billion, climbing 20% from the prior year period. The company has now recorded record revenue for six consecutive quarters. Disney’s stock price increased more than 3% following the earnings announcement.
The strong performance stands out amid a challenging environment for travel to the United States. The World Travel & Tourism Council reported that while international tourism grew globally, the U.S. was the sole major destination to experience a decline in foreign visitors, with international travel to the country falling 6%. Contributing factors to this decline include travel bans, visa fees, invasive border searches, trade tensions, geopolitical concerns and safety worries, according to travel analysts and industry organizations.
Despite these headwinds, Disney’s Chief Financial Officer Hugh Johnston noted that domestic park attendance rose 3% and per-guest spending increased 4%, with particularly strong results at Walt Disney World in Orlando. The company’s Chief Executive Josh D’Amaro highlighted during the earnings call that Disney was outperforming competitors while maintaining strong visitor volume and spending metrics during a period of macroeconomic uncertainty.
Disney attributed the strong attendance to its Cool Kids Summer promotion, featuring character experiences, entertainment and complimentary water park access for hotel guests, alongside recent refreshes to popular attractions. Similar targeted discounting campaigns at Disneyland in California focused on residents and families. The experiences division also benefited from the addition of two new cruise ships, the Disney Destiny and Disney Adventure, which increased stateroom capacity by approximately 50% and lifted resort and vacation revenue to $2.77 billion, up 17% from the prior year quarter.
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