The Walt Disney Company reported their earnings for the fourth quarter (Q4) and fiscal year 2016 which ended on October 1, 2016. Revenue for the fiscal year increased 6% to $55.6 billion with the quarter down 3% to 13.1 billion. Net income increased a staggering 12% for the year to a record $9.4 billion with the quarter up 10% to 1.7 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’re very pleased with our performance for the year, delivering the highest revenue, net income and earnings per share in Disney’s history,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “Fiscal 2016 was our sixth consecutive year of record results, highlighted by the opening of Shanghai Disney Resort, the phenomenally successful return of Star Wars, and our Studio’s record-breaking $7.5 billion in total box office. We remain confident that Disney will continue to deliver strong growth over the long-term as we further strengthen our brands and franchises, our technological capabilities, and our international presence.” ”
The Parks and Resorts segment (which includes Disney Cruise Line) saw revenue increase for the the year earnings were up 5% to 16.1 billion with income up 9% to 3 billion. Parks and Resorts revenues for the quarter increased 1% to $4.4 billion, and segment operating income decreased 5% to $699 million due to a decrease at our international operations, partially offset by an increase at our domestic operations.
The decrease in operating income at our international operations was due to lower results at Disneyland Paris and Hong Kong Disneyland Resort, partially offset by the benefit of the first full quarter of operations for Shanghai Disney Resort. Lower results at Disneyland Paris were primarily due to decreases in attendance and occupied room nights. At Hong Kong Disneyland Resort, the decrease in operating income was due to lower attendance.
The increase at our domestic operations was primarily due to growth at Walt Disney World Resort, partially offset by a decrease at Disneyland Resort. The improvement at Walt Disney World Resort was due to lower costs and guest spending growth, partially offset by lower volumes. Guest spending growth was driven by higher average ticket prices and room rates and increased food and beverage spending. Lower volumes reflected the Fiscal Period Impact, which more than offset increases in attendance and occupied room nights on a comparable fiscal period basis. Results at Disneyland Resort reflected lower attendance, partially offset by higher average ticket prices and lower costs. The decrease in attendance reflected the impact of the 60th Anniversary celebration in the prior-year quarter and an unfavorable Fiscal Period Impact. Lower costs at both Walt Disney World Resort and Disneyland Resort were due to a favorable Fiscal Period Impact.
Additionally, capital expenditures for the year increased from $4.3 billion to $4.8 billion due to an increase at Parks and Resorts driven by higher construction spending at our domestic parks, Hong Kong Disneyland Resort and Disney Cruise Line, partially offset by lower spending at Shanghai Disney Resort.
For more information and an overall report click over to the Q4-2016 Earnings Report.