Disney Posts Record Experiences Revenue as Cruise Capacity Grows
Disney Adventure began sailing from Singapore in March, joining Disney Destiny as stateroom capacity rose about 50% year over year.
Walt Disney Co.’s Experiences division, which includes Disney Cruise Line, reported record fiscal third-quarter revenue and operating income as new cruise capacity added more vacation volume. For the quarter ended June 28, Experiences revenue rose 10% to $9.97 billion from $9.08 billion, and operating income increased 20% to $3.02 billion from $2.52 billion.
Total company revenue increased 7% to $25.25 billion, and adjusted earnings per share reached $2.06, ahead of Wall Street’s $1.86 forecast. The quarter was Disney’s first full reporting period with Disney Destiny and Disney Adventure both in service. Stateroom capacity rose about 50% year over year.
New ships lift passenger cruise days
Disney said higher resorts and vacations revenue was partly driven by a 10% increase in passenger cruise days, tied to Disney Destiny, which launched last November, and Disney Adventure, which began sailing from Singapore in March.
Chief Financial Officer Hugh Johnston said the company’s cruise ships are delivering “strong growth,” adding that cruise bookings look “very healthy.” Disney also said it remains encouraged by occupancy levels for the expanded fleet.
On a fleet basis, Disney Cruise Line now operates eight active ships with total passenger capacity of about 30,626. Disney Adventure is the line’s largest vessel at 208,108 GT, with capacity for up to 6,700 passengers and roughly 2,110 staterooms, while the 144,000-GT Disney Destiny can carry up to 4,116 passengers.
Cruise performance sits inside broader Experiences growth
The Experiences division accounted for 39% of Disney’s revenue in the quarter, while Entertainment represented 45%. Disney reported a 4% increase in global guests versus the same quarter last year, following a 2% increase in the second quarter and a 4% increase in the first quarter.
Johnston said Disney’s hedging program and fuel-efficiency work have produced “very little impact” from oil-price fluctuations.
Disney said it is looking to bring additional cruise line capacity into service in the years ahead.
