The Walt Disney Company reported their earnings today for the third quarter (Q3) of 2013 which ended on June 29, 2013. Overall, the Walt Disney Company’s profits are up 1% for the quarter to $1.8 billion with revenue up 4% to $11.6 billion.
The Parks and Resorts segment (which includes Disney Cruise Line) saw revenue jump for the quarter 7% to $3.7 billion with income up 9% to $689 million.
Growth in the Parks and Resorts segments has been attributed to record attendance at Disneyland and Walt Disney World Resorts despite the Easter holiday shift which placed those vacations in Q2-2013. The Resorts saw an increase in guest spending as a result of the increase in ticket prices and occupied room nights along with food & beverage purchases. This increase was partially offset by higher operating costs as a result of the startup costs of MyMagic+ and New Fantasyland construction.
Disneyland and Walt Disney World tend to garner the most of the attention in the Parks & Resorts earnings reports, deservingly so, but I was surprised that Disney Cruise Line was not really mentioned.
The Disney Fantasy, more specifically her last payment, was mentioned as one of the reasons for a $1.1 billion decrease in overall capital expenditures at the Walt Disney Company. In addition the the Fantasy’s final payment, the company was paying for the expansion of Disney’s California Adventure and the construction Disney’s Art of Animation Resort during the previous fiscal year.
During the conference call it was noted that the company is not hoarding cash. Instead, Disney is reinvesting and making strategic purchases. Bob Iger was quoted in the third quarter earnings report saying, “We are confident that our strategy of creating high-quality branded content positions us well for the future.”
Going forward, Disney will be opening up their wallets this fall with the re-imagining of the Disney Magic which will more than likely be referenced in the fourth quarter earnings report.
For more information and an overall report click over to the Q3-2013 Earnings Report.