The Walt Disney Company reported their earnings for the fourth quarter (Q4) and fiscal year 2014 which ended on September 27, 2014. Revenue for the fiscal year increased 8% to $48.8 billion with the quarter up 7% to 12.4 billion Net income increased a staggering 22% for the year to a record $7.5 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.
“Our results for Fiscal 2014 were the highest in the Company’s history, marking our fourth consecutive year of record performance,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “We’re obviously very pleased with this achievement and believe it reflects the extraordinary quality of our content and our unique ability to leverage success across the Company to create significant value, as well as our focus on embracing and adapting to emerging consumer trends and technology.”
The Parks and Resorts segment (which includes Disney Cruise Line) saw revenue increase for the quarter 7% to $4 billion with income up 20% to $687 million. Growth for the quarter was driven by an increase in Disney’s domestic operations though offset by a decrease at international resort locations.
Higher operating income domestically was driven by increased guest spending and attendance. This was partially offset by higher costs and lower Disney Vacation Club ownership sales. The increase in guest spending was primarily attributed to higher average theme park ticket prices and for Disney Cruise Line sailings, as well as increased food, beverage and merchandise spending.
Higher costs reflected increased costs for MyMagic+ and the absence of an offset in the prior-year quarter from a property sale, partially offset by lower pension and postretirement medical costs. Decreased Disney Vacation Club ownership sales reflected the prior-year success of The Villas at Disney’s Grand Floridian Resort & Spa, for which sales commenced at the end of the third quarter of fiscal 2013.
The decrease at Disney’s international Parks & Resorts operations was due to lower operating performance at Disneyland Paris, higher pre-opening expenses at Shanghai Disney Resort and the impact of a weaker yen on our royalties from Tokyo Disney Resort. Lower operating income at Disneyland Paris was driven by higher operating and marketing costs and lower attendance, partially offset by increased guest spending, due to higher average ticket prices, and higher real estate sales.
For more information and an overall report click over to the Q4-2014 Earnings Report.