The Walt Disney Company reported their earnings for the fourth quarter (Q4) and fiscal year 2015 which ended on October 3, 2015. Revenue for the fiscal year increased 7% to $52.5 billion with the quarter up 9% to 13.5 billion. Net income increased a staggering 12% for the year to a record $8.4 billion. According to Bob Iger, The Walt Disney Company is pleased with the continued record setting results attributed to the the extraordinary quality of the content across the Company.
“We had a strong quarter, with adjusted EPS up 35%, completing our fifth consecutive year of record performance,” said Robert A. Iger, chairman and chief executive officer of The Walt Disney Company. “In Fiscal 2015 we delivered the highest revenue, net income and adjusted EPS in the Company’s history, reflecting the power of our great brands and franchises, the quality of our creative content, and our relentless innovation to maximize value from emerging technologies.”
The Parks and Resorts segment (which includes Disney Cruise Line) saw revenue increase for the the year earnings were up 7% to 16.1 billion with income up 14% to 3 billion. Revenue for the quarter was 10% to $4.4 billion with income up 7% to $738 million. Growth for the quarter was driven by an increase in Disney’s domestic operations though offset by a decrease at international resort locations.
Growth at the domestic operations was driven by increased guest spending and attendance at our theme parks, partially offset by higher costs. Guest spending growth was primarily due to higher average hotel room rates and ticket prices for sailings at Disney Cruise Line as well as theme park admissions and increased merchandise, food and beverage spending. Cost increases were driven by labor and other cost inflation, spending on information technology maintenance and infrastructure and higher pension and postretirement medical costs.
The decrease at our international operations was primarily due to lower attendance and occupied room nights at Hong Kong Disneyland Resort, higher operating costs at Disneyland Paris and higher pre- opening expenses at Shanghai Disney Resort. These decreases were partially offset by increased guest spending and volumes at Disneyland Paris. Guest spending growth at Disneyland Paris was due to increased food, beverage and merchandise spending as well as higher average hotel room rates and ticket prices. Increased volumes at Disneyland Paris were due to higher attendance and occupied room nights.
For the year growth at Parks and Resorts was driven by our domestic operations due to higher average guest spending, attendance and occupancy, partially offset by increased costs driven by inflation and volumes. Results at our international parks and resorts operations reflected lower attendance and occupancy at Hong Kong Disneyland Resort and higher pre-opening expenses at Shanghai Disney Resort.
For more information and an overall report click over to the Q4-2015 Earnings Report.
Wow. It appears the “Disney is going to price out the middle class” business model is working. Being a resident now with an annual pass, I see the parks pretty full from people from all walks of life and every corner of the world. And I don’t seeing that stopping anytime soon. Disney offers an amazing experience and people recognize that regardless of their income.
So it seems they are increasing prices on the cruise line and the parks to make up for international parks poor performance? Not exactly fair