'The cruise business has enormous opportunities for us over time,' Walt Disney Co. CFO Hugh Johnston said during the company's Tuesday earnings call.
Walt Disney Co. expects 'excellent' returns, particularly from its cruise business 'given the margin profile of the business and the fact it's got the highest guest satisfaction scores in the company,' Johnston continued. 'This leads us to conclude this is a business with a lot of runway left in it, and that will deliver great returns to our shareholders.'
The entertainment giant reported $1.21 adjusted earnings per share, up from 93 cents a year ago. Revenues increased to $22.1b from $21.8b.
Higher operating income, revenues in segment including cruise
Operating incoming in the Domestic Parks and Experiences segment, which includes Disney Cruise Line, rose 6%, to $1.6b, on 7% higher revenues of $5.9b.
This was due to higher results at Walt Disney World Resort and Disney Cruise Line, partially offset by lower results at Disneyland Resort.
Cruise ticket prices up, partially offset by higher costs
Growth at Disney Cruise Line was due to an increase in average ticket prices, partially offset by higher costs.
Walt Disney Co. capital expenditures increased to $2.6b from $2.4b due to higher spend on new attractions and cruise fleet expansion.
Disney Cruise Line is due to introduce Disney Treasure later this year, with sister ship Disney Destiny expected in 2025 along with Disney Adventure (ex Global Dream). Before that, this summer, the new Disney Lookout Cay at Lighthouse Point in Eleuthera is scheduled to begin taking calls.
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