Disney Theme Parks are clearly continuing to bounce back from pandemic-ridden times. The Walt Disney Company released its earnings for its first fiscal quarter of 2022, which ended on January 1, 2022.
In the span of those three months, Disney Parks, Experiences and Products generated $7.2 billion in revenue, making this recorded its second-best quarter of all time! That is more than a 100% increase compared to the results released on January 2, 2021, which saw $3.588 billion in revenue.
Disney credits this increase to high volume and extended stays from Guests, the return of cruising, albeit at a limited capacity, an increase in Guests’ consumption of merchandise and food and beverage, and the introduction of Genie+ and Lightning Lane.
Disney Parks, Experiences and Products revenues for the quarter increased to $7.2 billion compared to $3.6 billion in the prior-year quarter. Segment operating results increased by $2.6 billion to income of $2.5 billion compared to a loss of $0.1 billion in the prior-year quarter. Operating income for the quarter reflected increases at our parks and experiences businesses, partially offset by a decrease at our consumer products business.
Operating income growth at our domestic parks and experiences was due to higher volumes and, to a lesser extent, increased guest spending, partially offset by higher costs. Higher volumes were due to increases in attendance, occupied room nights and cruise ship sailings. Cruise ships operated at reduced capacities in the current quarter while sailings were suspended in the prior-year quarter. Guest spending growth was due to an increase in average per capita ticket revenue, higher average daily hotel room rates and an increase in food, beverage and merchandise spending. The increase in average per capita ticket revenue was due to attendance mix and the introduction of Genie+ and Lightning Lane. Higher costs were due to an increase in operating costs, due to volume growth, and higher marketing spending. Our domestic parks and resorts were open for the entire current quarter, whereas Disneyland Resort was closed for all of the prior-year quarter, and Walt Disney World Resort operated at reduced capacity due to mandatory COVID-19 restrictions.
Looking back at Walt Disney World and Disneyland’s holiday attendance, it is no surprise to this reporter that such a financial feat was met. As 2021 went by, a combination of a better understanding of COVID-19, an increase in vaccinations, and people’s frustration with restrictions led to an increase in travel–especially to low-restriction states like Florida. The Disneyland Resort also finally reopened for Guests eager to get back to the Magic.
But it is clear that a key factor in this massive increase is to do with Magic returning to every : , , , EPCOT, Disney’s Hollywood Studios, ‘s , , , ( and ), , and . ‘s and Typhoon Lagoon were also open, as well as the resorts’ shopping and dining centers like Springs, and Village at .
Guests may be complaining about lines and crowds, but for the Walt Disney Company, its shareholders, and any Disney fan who loves seeing people finally getting back to the Magic, this report is wonderful news.