The Walt Disney Company Reports 2nd Quarter Earnings

The Walt Disney Company today reported quarterly earnings of $2.1 billion for its second fiscal quarter ended April 2, 2016, an increase of $35 million over the prior-year quarter. “We’re very pleased with our overall results in Quarter 2” said Robert A. Iger, chairman and chief executive officer, The Walt Disney Company. “Our Studio’s unprecedented winning streak at the box office underscores the incredible appeal of our branded content, which [adds] significant value.”

Segment Results

The following table summarizes the Q2 segment operating results for fiscal 2016 and 2015 (in millions):

Parks and Resorts

Parks and Resorts revenues for the quarter increased 4% to $3.9 billion and segment operating income increased 10% to $624 million. Operating income growth for the quarter was due to an increase at our domestic operations, partially offset by a decrease at our international operations.

Higher operating income at our domestic operations was due to guest spending growth, partially offset by higher costs. The increase in guest spending was due to higher average ticket prices at our theme parks and cruise line, increased food, beverage and merchandise spending, and higher average hotel room rates. Cost increases were due to labor and other cost inflation and higher depreciation associated with new attractions.

Attendance at our domestic theme parks was relatively flat, as an increase at Disneyland Resort was offset by a modest decrease at Walt Disney World Resort. Lower operating income at our international operations was due to higher pre-opening expenses at Shanghai Disney Resort, increased operating costs at Disneyland Paris and lower volume at Hong Kong Disneyland Resort, partially offset by higher guest spending at Disneyland Paris.