As expected, The Walt Disney Co.'s (NYSE: DIS) theme park division posted yet another record quarter of business.
The company, which released its first-quarter 2016 earnings on Feb. 9, reported $4.2 billion in revenue for the theme park division, up 9 percent from $3.91 billion for the same quarter last year. Operating income for the theme parks was up 22 percent to $981 million, compared to $805 million reported for the same quarter last year.
The increase in theme park business is due to "higher average ticket prices at [Disney] theme parks and cruise line, increased food, beverage and merchandise spending, and higher average hotel room rates," said the company's release.
The theme parks division of Disney has been in overdrive to add new experiences around the world. Most notable is the massive Shanghai Disney Resort project slated to open sometime later this year. Locally, the company is gearing up to invest in new attractions and experiences at Disney's Hollywood Studios with new Star Wars and Toy Story lands. Also, hotel occupancy was 92 percent for the domestic parks this quarter and more of that success may lead to growing the theme parks' hotel capacity "down the road," said Tom Staggs, Disney COO, during the call.
The ongoing construction of the Avatar expansion at Disney's Animal Kingdom and other additions to Epcot like the Frozen Ever After ride also are in the works. In addition, the company still is renovating Disney Springs and adding new and more unique retailers, restaurants and attractions to the marketplace.
Overall, Disney reported revenue of $15.2 billion, up 14 percent from $13.3 billion earned for the first quarter for the 2016 fiscal year. That is a record quarter in earnings of $2.9 billion compared to $2.2 billion reported for the same time last year, said the company.
Source: Orlando Sentinel