The Walt Disney Company reported its second quarter and six-month earnings for fiscal year 2024 on Tuesday, revealing a revenue increase to $22.1 billion from $21.8 billion in the prior-year quarter.
Disney noted that its experiences business was a growth driver in the second quarter, with revenue growth of 10 percent, segment operating income growth of 12 percent and margin expansion of 60 basis points versus the prior year.
According to Disney, the increase in operating income at its domestic parks and experiences was due to higher results at Walt Disney World Resort and Disney Cruise Line.
Improved results at Walt Disney World Resort were due to increased guest spending resulting from higher average ticket prices and higher costs due to inflation, which was partially offset by lower depreciation and cost-saving initiatives.
Meanwhile, the growth at Disney Cruise Line was attributed to an increase in average ticket prices.
Internationally, Disney said higher parks and experiences' operating results were due to an increase in operating results at Hong Kong Disneyland Resort as a result of guest spending growth due to increases in average ticket prices and food, beverage and merchandise spending; higher volumes resulting from increases in attendance and occupied room nights and volume growth due to additional days of operations in the current quarter as well as the opening of World of Frozen in November 2023.
"Our strong performance in Q2, with adjusted EPS up 30 percent compared to the prior year, demonstrates we are delivering on our strategic priorities and building for the future," Disney CEO Bob Iger said in a statement. "Our results were driven in large part by our Experiences segment as well as our streaming business."
"Looking at our company as a whole, its clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results. We are turbocharging growth in our experiences business with a number of near- and long-term strategic investments."
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