Disney's experiences division posted nearly $10 billion in fiscal third-quarter revenue, a 10% jump from a year earlier and a quarterly record, as domestic attendance and spending rose even while international travel to the United States fell 6%. Operating income topped $3 billion, up 20% from the same period last year, and shares rose 2% Wednesday. The division has now delivered record revenue for six consecutive quarters.
Domestic strength offsets international drop
The World Travel and Tourism Council found the United States was the only major destination to lose foreign visitors last year, citing travel bans, visa fees and invasive searches at ports of entry. Comcast reported lagging attendance at its Orlando parks last month. Disney, by contrast, said domestic park attendance rose 3% and guest spending climbed 4%, with chief financial officer Hugh Johnston calling out "very strong attendance" at Walt Disney World. Those numbers, he noted, diverge from both the local competitor and reported traffic through Orlando International Airport.
Cruise capacity drives resort revenue
Two new ships, the Disney Destiny and the Disney Adventure, expanded stateroom capacity by roughly 50% and lifted revenue from the resorts and vacations segment 17% to $2.77 billion. The cruise addition is a rare instance where capacity growth translates directly into reported results without a lag for demand to catch up.
Promotions create urgency ahead of new rides
The Cool Kids Summer promotion, free water park admission for hotel guests, character meet-and-greets, dance parties and air-conditioned hangout spots, targeted young families and residents. Gavin Doyle of MickeyVisit.com said the campaigns created urgency despite a "massive slate of upcoming rides that might have encouraged guests to delay their visits." Similar resident discounts at Disneyland in Anaheim produced the same effect on the West Coast.
What to watch
CEO Josh D'Amaro framed the outperformance as proof the company is gaining share in a softening market. The next test is whether the promotional spend required to sustain volume holds up once the new attractions open and the cruise fleet normalizes.