Domestic gains can’t hide global weaknesses as Disney bets big on a new international destination.
U.S. Parks Keep Disney’s Earnings Afloat
The Walt Disney Company’s Q2 FY25 earnings report highlighted a clear narrative: the domestic theme park and cruise business is doing the heavy lifting. Operating income from U.S.-based experiences jumped 13%, driven by higher attendance, spending, and bookings across Walt Disney World, Disneyland, and Disney Cruise Line.
The successful launch of the Disney Treasure cruise ship and strong Disney Vacation Club sales helped drive total Disney Experiences segment income to $2.49 billion—up 9% year over year.
Global Parks Hit a Wall
That momentum doesn’t extend overseas. International parks—Shanghai Disney and Hong Kong Disneyland among them—saw a steep 23% drop in operating income, from $292 million to just $225 million. Revenue also slid by 5%, largely due to increased operating costs and slumping attendance.
Despite high-profile expansions like World of Frozen and Zootopia, those investments haven’t yet translated into financial recovery. The lag could be seasonal—or a warning sign that international guests are still hesitant or financially constrained in a post-pandemic travel market.
Expansion Amid Decline? Enter Abu Dhabi
In an eyebrow-raising move, Disney announced plans for a brand-new theme park in Abu Dhabi on the same day as this mixed earnings report. The project is a licensing deal with Miral and the Department of Culture and Tourism—meaning Disney won’t build or operate the park, but will lend its brand and creative input.
This strategy minimizes Disney’s financial risk, but the optics are tricky: why announce a flashy new international park when your current ones are struggling?
The Strategic Gamble
Disney’s international parks are part of its long-term growth engine, but their recent performance casts doubt on their immediate value. Abu Dhabi’s park may represent an attempt to pivot to emerging tourism markets—but the United Arab Emirates is untested territory for family-centric, IP-heavy entertainment resorts.
Furthermore, licensing deals come with reputational risks. Disney’s high brand standards may be harder to enforce without operational control, and any issues could reflect poorly on the company globally.
Looking Ahead: Opportunity or Overextension?
CEO Bob Iger remains bullish. “An unprecedented number of expansion projects” are underway, he said, with confidence that Disney’s broader strategy will pay off by the end of the fiscal year.
Still, this moment marks a turning point: Disney’s domestic parks are masking cracks in its global foundation. Whether Abu Dhabi becomes a shining example of smart international growth—or another reminder of how tough it is to export Disney magic—will depend on what comes next.
