- Joined
- Jan 3, 2001
- Messages
- 9,288
Disney parks to grow volume 2-3 pct
Wed Mar 29, 2006 6:44 PM ET
LOS ANGELES, March 29 (Reuters) - The Walt Disney Co. (DIS.N: Quote, Profile, Research) expects its U.S. theme park volume to rise 2 percent to 3 percent annually even after the end of its 50th anniversary promotion, parks division Chief Financial Officer Jim Hunt told an investor conference on Wednesday.
Disney's theme park arm, which accounts for about a quarter of its operating income, expects to realize savings from using more part-time employees and from standardizing benefits across its 11 parks, Hunt said.
Disney's parks and resorts profit rose 51 percent to $375 million in the first quarter of fiscal 2006 as Hong Kong Disneyland posted its first full quarter of operations and the Disneyland 50th anniversary promotion spurred business at U.S. parks.
"Assuming continued strength in the travel and leisure markets, we plan to grow domestic volumes at about 2 to 3 percent per year (and) increase pricing at a rate that approximates inflation or maybe slightly above," Hunt said at the Bank of America investor conference in New York.
The 18-month global promotion, which began last May, should drive traffic to the parks once the celebration has concluded, Hunt said.
"The attractions which (consumers) view during this celebration will be available for guests to enjoy not only during 2005 and 2006 but for many years to come," Hunt said.
Parks and resort employees, who account for about 70 percent of Disney's work force, will see a larger number of part-time workers providing more flexibility as attendance varies, Hunt said.
"We adjust our mix of full- and part-time hours and, moving forward, expect to increase our part-time labor. While I'm only talking about several percentage points of shifts here, the results are expected to be significant," Hunt said.
Labor and benefits initiatives were expected to be "significant contributors to cost productivity over the next several years," he said.
Hunt also pledged that domestic capital expenditures at parks and resorts, which totaled $726 million in 2005, would stay below $1 billion in the foreseeable future.
Wed Mar 29, 2006 6:44 PM ET
LOS ANGELES, March 29 (Reuters) - The Walt Disney Co. (DIS.N: Quote, Profile, Research) expects its U.S. theme park volume to rise 2 percent to 3 percent annually even after the end of its 50th anniversary promotion, parks division Chief Financial Officer Jim Hunt told an investor conference on Wednesday.
Disney's theme park arm, which accounts for about a quarter of its operating income, expects to realize savings from using more part-time employees and from standardizing benefits across its 11 parks, Hunt said.
Disney's parks and resorts profit rose 51 percent to $375 million in the first quarter of fiscal 2006 as Hong Kong Disneyland posted its first full quarter of operations and the Disneyland 50th anniversary promotion spurred business at U.S. parks.
"Assuming continued strength in the travel and leisure markets, we plan to grow domestic volumes at about 2 to 3 percent per year (and) increase pricing at a rate that approximates inflation or maybe slightly above," Hunt said at the Bank of America investor conference in New York.
The 18-month global promotion, which began last May, should drive traffic to the parks once the celebration has concluded, Hunt said.
"The attractions which (consumers) view during this celebration will be available for guests to enjoy not only during 2005 and 2006 but for many years to come," Hunt said.
Parks and resort employees, who account for about 70 percent of Disney's work force, will see a larger number of part-time workers providing more flexibility as attendance varies, Hunt said.
"We adjust our mix of full- and part-time hours and, moving forward, expect to increase our part-time labor. While I'm only talking about several percentage points of shifts here, the results are expected to be significant," Hunt said.
Labor and benefits initiatives were expected to be "significant contributors to cost productivity over the next several years," he said.
Hunt also pledged that domestic capital expenditures at parks and resorts, which totaled $726 million in 2005, would stay below $1 billion in the foreseeable future.
