Disney Boosts Parks Spending Amid Record Quarter
The Walt Disney Company has accelerated its $60 billion investment plan for parks and resorts after a record quarter. The Experiences division, which accounts for 57% of the group's operating income, saw a 10% rise in revenue and a 20% increase in operating income.
New CEO Josh D'Amaro described the results as a 'big surprise' and said it justifies 'supercharging' the investment plan. The company has committed $17 billion to its domestic sites over 15 years, with Oriental Land Company financing the overhaul of Space Mountain in Tokyo at an estimated cost of $460 million.
The growth in revenue owes more to increased spending per visitor than to visitor numbers, which rose just 3%. Disney is using dynamic pricing and premium services to drive revenue. The company has also announced new themed lands dedicated to franchises including Monsters, Inc. and Marvel for its domestic sites.