Cars Land Helps Drive Up Disney's Theme Parks Earnings for 2012
Nov 8, 2012
Post by Jack Burgin
The Walt Disney Company released its Fourth Quarter and Year End Financial Report today, November 8, 2012.
Overall, diluted earnings per share (EPS) for the year increased 24% to $3.13 from $2.52 in the prior year. Overall revenues for the 2012 fiscal year increased by 3 percent over 2011 revenues.
Revenue and operating income Disney's Theme Park segment drove the most significant increase among all the company’s segments. For all of 2012, Revenue increased by 10 percent, from $11.8 billion in 2011 to $12.9 billion in 2012. At $1.9 billion, operating income for the Theme Park segment increased by a sizable 22 percent over 2011.
Disney's earnings report explained that "Results for the year reflected increases at our domestic parks and resorts, Tokyo Disney Resort, Disney Cruise Line and Hong Kong Disneyland Resort, partially offset by a decrease at Disneyland Paris." Increased guest attendance and spending, offset partially by higher costs helped. Disney specifically noted that "Increased attendance reflected strong growth at Disneyland Resort which benefited from the opening of Cars Land at Disney California Adventure."
While revenue at Disney's Studio Entertainment segment decreased by eight percent (from $6.3 billion to $5.8 billion) operating income for the Studios segment increased by 17 percent over 2011. Disney attributed the revenue decline for 2012 to fewer theatrical releases in the current year and lower home entertainment sales volume. The strong performance of Marvel's The Avengers brought about the increase in domestic theatrical operating income growth.