Mickey Mouse reports positive growth in profit
February 8, 2011 | Business, Entertainment, Travel
The Walt Disney Company reports that its theme park business returned to positive growth in the most recent quarter after declining for nine consecutive quarters. This factor alone is an indication that people are opening up their wallets for entertainment and in turn will spark the economy. The increased of 25 percent, to $468 million should prove to be just the shot in the arm that this economy needs says one consumer.
Strong attendance at the Disney’s parks division will also begin to effect other economic factors for example this will help to restore prices for tickets and hotel rooms to near-normal levels. Over the last two years, Disney imposed a series of steep discounts to counter the recession and try to keep people coming out to the parks.
Disney said per-capita spending increased 8 percent at its North American parks, which include Walt Disney World and Disneyland. Attendance increased 2 percent, despite bad weather on both coasts; room bookings were up 4 percent. Spending and attendance also increased at the company’s international parks.
Even Wall Street was surprised with the growth they estimated a 56 cent a share increase but the company’s stock price was over 3% to $42.60. For the quarter, which ended on Jan. 1, Disney reported net income of $1.3 billion, or 68 cents a share, up from $844 million, or 44 cents a share, a year earlier. Revenue in the quarter, the first of Disney’s fiscal year, increased 10 percent to $10.7 billion.
Rather than easing up on new rides and park expansions during the downturn, Disney decided — somewhat controversially — to double down on the division. The Disneyland Resort is halfway through a $1 billion expansion and renovation of its California Adventure section, while Disney World is preparing additions to its Magic Kingdom property.
This article was written by: Brenda Mallard
