Disney theme parks faced significant financial losses due to two hurricanes.
- Hurricanes Helene and Milton hit Florida, costing Disney $130 million.
- Disney Cruise Line faced $90 million in pre-launch expenses for new ships.
- Despite setbacks, Disney’s experiences segment saw a rise in annual operating profit.
- The company anticipates growth in the next financial year, focusing on the latter half.
Two hurricanes, Helene and Milton, struck Disney’s theme parks in Florida, resulting in considerable financial setbacks amounting to $130 million. This impact was disclosed by The Walt Disney Company as part of their recent financial report for the year ending in September.
In addition to the hurricane damages, Disney faced $90 million in pre-launch costs for new ships under its Cruise Line division. These expenses are expected to affect the operating income of Disney’s experiences division in the upcoming quarter.
Despite these challenges, Disney reported record revenue and operating income for the entire year within its experiences segment. The segment witnessed a 4% increase in annual operating profit, reaching $9.2 billion, alongside a 5% rise in revenue to $34.1 billion.
For the summer quarter, however, there was a decrease in operating income by 6% to $1.7 billion, despite a modest revenue increase of 1% to $8.2 billion. This was attributed to less attendance and reduced spending in international parks.
Conversely, the U.S. operations saw an increase in operating income, driven by higher guest spending and steady attendee numbers at domestic theme parks and Disney Cruise Line. However, this was partly mitigated by rising costs linked to new guest offerings and inflation.
Disney’s Chief Executive, Robert Iger, noted the year’s success amidst challenges, highlighting that the company is well-positioned for future growth, expecting a 6%-8% rise in operating income for the experiences division in the next financial year.
Disney remains optimistic about its future financial growth despite recent challenges posed by natural disasters.
