BURBANK, Calif.–The Walt Disney Company (NYSE: DIS) reported the earnings for its fourth quarter and fiscal year ended September 30, 2017 yesterday (9 November 2017).
Diluted earnings per share (EPS) for the fourth quarter increased 3% from $1.10 in the prior-year quarter to $1.13 in the current quarter. Excluding certain items affecting comparability, EPS for the quarter decreased 3% from $1.10 in the prior-year quarter to $1.07. Diluted EPS for the year decreased from $5.73 in the prior year to $5.69. Excluding certain items affecting comparability, EPS for the year decreased from $5.72 in the prior year to $5.70.
“No other entertainment company is better equipped to navigate the ever-evolving media landscape, thanks to our unparalleled collection of brands and franchises and our ability to leverage IP across our entire company,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “We look forward to launching our first direct-to-consumer streaming service in the new year, and we will continue to invest for the future and take the smart risks required to deliver shareholder value.”
During the Earnings Results webcast, it was mentioned that this year Disneyland Paris (alongside Shanghai) was responsible for the increase in Parks and Resorts revenue – increase in all key areas (Attendance, Guest spending and hotel occupancy) partially offset by increased 25th investment and losses tied in with Villages Nature Resort. Bob Iger also stated that “Disneyland Paris has had a full corporate restructure suitable to expand and grow this business”
The full report can be found here, the section of interest to Disneyland Paris fans will of course be the Parks and Resorts summary which is reproduced below.
Parks and Resorts
Parks and Resorts revenues for the quarter increased 6% to $4.7 billion, and segment operating income increased 7% to $746 million. Operating income growth for the quarter was due to an increase at our international operations, partially offset by a decrease at our domestic operations, which were unfavorably impacted by Hurricane Irma. As a result of the hurricane, Walt Disney World Resort was closed for two days, and we canceled three cruise itineraries and shortened two others. Results at our international operations were due to growth at Disneyland Paris and Shanghai Disney Resort.
The improvement at Disneyland Paris reflected increases in attendance, guest spending and occupied room nights, partially offset by higher costs, driven by the 25th Anniversary celebration, and a loss from its 50% joint venture interest in Villages Nature.
Guest spending growth was primarily due to higher average ticket prices and food and beverage spending. The increase at Shanghai Disney Resort was due to attendance growth and lower marketing costs, partially offset by lower average ticket prices. The decrease in marketing costs reflected costs associated with the grand opening of Shanghai Disney Resort in the prior year.
The decrease in operating income at our domestic operations was driven by lower results at Walt Disney World Resort, partially offset by an increase at our cruise line, growth at Disneyland Resort and higher sales of vacation club units.
Lower results at Walt Disney World Resort were driven by higher costs and fewer occupied room nights, partially offset by growth in guest spending and attendance, although both were negatively impacted by Hurricane Irma. Higher costs were primarily due to increases in labor and employee benefits, depreciation and marketing. Guest spending growth was due to increased food and beverage spending and higher average daily hotel room rates. Available hotel room nights were lower due to refurbishments and conversions to vacation club units.
Growth at our cruise line resulted from higher average ticket prices.
Higher results at Disneyland Resort were due to increases in guest spending and attendance, partially offset by higher costs for new guest offerings and marketing. The increase in guest spending was primarily due to higher average ticket prices.