Disney Releases First Quarter (FY 2011) Earnings

[jcb]

Disney released its first quarter (the period that covers December) earnings. These earnings are broken down by business segments. Parks and Resorts, the segment near and dear to our hearts (so I assume) did well (in comparison to 2010 first quarter earnings). The earnings statement summarized the results:

Parks and Resorts revenues for the quarter increased 8% to $2.9 billion and segment operating income increased 25% to $468 million. Results for the quarter reflected increases at our domestic and international parks and resorts, partially offset by a decrease at Disney Cruise Line.
Higher operating income at our domestic parks and resorts was driven by increased guest spending, attendance, and hotel occupancy partially offset by increased costs. The guest spending increase was primarily due to higher average ticket prices and increased food and beverage and merchandise spending. Increased costs reflected labor cost inflation and higher pension and healthcare costs.
Results at our international parks and resorts reflected increased guest spending, hotel occupancy and attendance. Increased guest spending was driven by higher food and beverage spending and average daily hotel room rates.
The decrease at Disney Cruise Line was driven by increased operating costs in connection with the January launch of the Disney Dream and the impact of scheduled dry-dock maintenance.

Not surprisingly, domestic capital investments were up dramatically for parks and resorts. 2011 first quarter capital investments were slightly more than $1 billion as compared to $193 million for the same period in 2010. This amount isn't broken down but the release did say that the increase was primarily due to the final payment on the Dream.

The press release filed with the SEC is: http://www.sec.gov/Archives/edgar/data/1001039/000119312511027218/dex991.htm

The pretty version from Disney is: http://dolimg.com/investorrelations/webcasts/q1-earnings-2011_545134GJB1.pdf

 

[jcb]

I should have added that the report did not attribute the sharp increase in operating income to spending on the podcast crisis cruise but I have no doubt that it was a significant factor.

 

[k5jm]

I should have added that the report did not attribute the sharp increase in operating income to spending on the podcast crisis but I have no doubt that it was a significant factor.

Jack, That would be a reason for an increase in operating income.

 

[jcb]

Jack, That would be a reason for an increase in operating income.

Dam* the spelling checker on the iPad.

And before you ask, no, you can't have it.