The Walt Disney Company reported their earnings today for the first quarter (Q1) of fiscal year 2017 which ended on December 31, 2016. According to Bob Iger, The Walt Disney Company is very pleased with their financial performance in the first quarter. Parks and Resorts delivered excellent results and, coming off a record year, our Studio had three global hits including our first billion-dollar film of fiscal 2017, Rogue One: A Star Wars Story. Iger went on to explain that Disney’s “proven strategy and unparalleled collection of brands and franchises, we are extremely confident in our ability to continue to drive significant value over the long term.”
Diluted earnings per share (EPS) for the quarter decreased 10% to $1.55 from $1.73 in the prior-year quarter. The decrease was driven by a $0.13 per share gain in the prior year related to the Company’s investment in A+E Television Networks. Excluding this gain and certain other items affecting comparability, EPS for the quarter decreased 5% to $1.55 from $1.63 in the prior-year quarter.
The Parks and Resorts segment (which includes Disney Cruise Line) saw revenue increase for the quarter 6% to $4.6 billion with income up 13% to $1.1 million. Operating income growth for the quarter was due to increases at domestic and international operations. The growth in the quarter was unfavorably impacted by Hurricane Matthew at our domestic operations and a shift in the timing of the New Year’s holiday relative to our fiscal periods.
The increase in operating income at domestic operations was primarily due to growth at parks and resorts and cruise line. Higher operating income at our parks and resorts was driven by guest spending growth, partially offset by lower attendance and occupied room nights. The increase in guest spending was due to higher average ticket prices, food and beverage spending and average hotel room rates. Attendance reflected the prior-year benefit of the 60th Anniversary celebration at Disneyland Resort, the impact in the current quarter from Hurricane Matthew at Walt Disney World Resort and the impact of the New Year’s holiday shift. Costs at parks and resorts were flat, as labor and other cost inflation and costs for new guest experiences were essentially offset by cost efficiency initiatives.
Disney Cruise Line, growth was due to higher average ticket prices and lower dry-dock expenses. A portion of the dry-dock costs for the Disney Wonder were incurred in the current quarter whereas all of the dry-dock costs for the Disney Dream were incurred in the prior-year first quarter.
Growth at our international operations was due to the opening of Shanghai Disney Resort in the third quarter of the prior fiscal year and higher results at both Disneyland Paris and Hong Kong Disneyland Resort. Disneyland Paris benefited from a full period of operations, whereas the park was closed for four days in the prior-year quarter. At Hong Kong Disneyland Resort, the increase was due to cost efficiency initiatives.
For more information and an overall report click over to the Q1-2017 Earnings Report.