While nobody expected the Walt Disney Company to anywhere hear the red at the end of Q3, I don’t think anybody expected the numbers to be quite as good as they are.

Just for reference, all figures in this post are a comparison of the quarter that ended on June 27 2015. Any comparisons to last year are comparing to the same quarter of 2014 which ended on June 28.

The quarterly earnings are at a record of $2.5 billion compared to the same quarter last year which was at $2.2 billion. This follows on from a string of successes for the Walt Disney Company across all of its major divisions including movies, theme parks, merchandise and television.

walt-disney-world-magic-kingdom-large

As it is the theme parks side of things we are really interested in here at Theme Park Trader you will be pleased to hear that the Parks and Resorts revenues for the quarter increased 4% to $4.1 billion.

This relates directly back to a quarterly conference call that Disney has with its investors that stated the following facts. All are based on the same time period in 2014:

  • Attendance at both Walt Disney World and Disneyland Resort was up 4%
  • Guests are spending on average 2% more on food, beverages and merchandise

Couple of less positive points:

  • Hong Kong Disneyland attendance is down
  • Shanghai Disneyland costing more and more as the opening date gets closer

More on the performance of Disney Parks taken directly from the earnings report:

“Parks and Resorts revenues for the quarter increased 4% to $4.1 billion and segment operating income increased 9% to $922 million.

Operating income growth for the quarter was due to an increase at our domestic operations, partially offset by a decrease at our international operations. Higher operating income at our domestic operations was primarily due to volume and guest spending growth, partially offset by higher costs.

The increase in volumes was due to attendance growth at our theme parks and higher occupied room nights at Walt Disney World Resort and our Aulani resort in Hawaii. Guest spending growth was due to higher food, beverage, and merchandise spending, increases in average ticket prices at our cruise line and Disneyland Resort and higher average hotel room rates.

Cost increases were due to labor and other cost inflation, costs for the 60th Anniversary celebration at Disneyland Resort and higher pension and postretirement medical costs, partially offset by lower marketing costs at Walt Disney World Resort.

Lower operating income at our international operations was due to lower attendance and occupied room nights at Hong Kong Disneyland Resort, higher operating costs at Disneyland Paris and Hong Kong Disneyland Resort, and higher pre-opening expenses at Shanghai Disney Resort.

These decreases were partially offset by higher average ticket prices, increased food, beverage and merchandise spending and higher volumes at Disneyland Paris.”

Capital expenditures increased from $2.2 billion to $3.1 billion primarily due to higher construction spending for the Shanghai Disney Resort.

Overall it is looking very positive for the Walt Disney Company at the end of their Q3 of 2015 and as a whole the theme parks division is doing very well indeed.

Let us know if you have any questions below, the full earnings report can be read here.