Disney (DIS) , which has 12 theme parks and six resort locations worldwide, appears to be bouncing back after it faced a slump in attendance at its U.S. theme parks last year amid criticism of recent price increases.
In its second-quarter earnings report for fiscal year 2025, Disney revealed that its U.S. theme parks and resorts experienced a 13% year-over-year increase in operating income, which is the company’s profit after expenses.
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Disney attributed this increase to higher levels of theme park attendance, guest spending, and occupied room nights at its resorts and hotels.
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The positive results come after Disney CEO Bob Iger said during the company’s annual shareholder meeting in March that consumer demand at Disney’s theme parks and resorts is “extremely high,” despite recent concerns about affordability.
“I was just at Walt Disney World on actually a weekday in March, and the place was really busy, really across the whole property,” said Iger.
Main Street at Disney World’s Magic Kingdom Disney is packed with people.
Image source: Gary Hershorn/Getty Images
Disney suffers a major loss
While Disney’s U.S. theme parks are recovering from last year’s weaker demand, its international theme parks are starting to suffer from declining foot traffic.
The segment’s operating income fell by a whopping 23% year-over-year during the quarter due to “lower theme park attendance and increased costs” at its Shanghai Disney Resort and Hong Kong Disneyland Resort, according to the earnings report.
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During an earnings call on May 7, Disney Chief Financial Officer Hugh Johnston said that Chinese consumers are “tightening their belts” amid recent macroeconomic concerns.
“Attendance is actually still quite good. It’s just per cap spending isn’t quite as high in China because the Chinese consumer, as we know, is a bit challenged,” said Johnston. “So, that perspective, (we) certainly feel good about the fact that we still have the engagement.”
Disney makes a surprising theme park announcement
Despite this recent loss, Disney has announced that it will be opening a new theme park in Abu Dhabi.
“Disneyland Abu Dhabi will be authentically Disney and distinctly Emirati,” said Iger during the earnings call. “It will serve as an oasis of extraordinary Disney entertainment for millions and millions of people in this crossroads of the world connecting travelers from the Middle East and Africa, India, Asia, Europe, and beyond.”
He also said that Disney will not have ownership of the park, but will be heavily involved in its operations and creative direction.
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“It is all their (UAE) capital, and we will get a royalty,” said Iger. “So there isn’t ownership. We own our IP and license it to them is essentially the arrangement. We’re responsible for design and development. And we will be involved significantly in oversight of their operations, basically to ensure that the Disney experience, meaning the Disney theme park experience, is up to the level that we offer in the other six locations that we operate.”
Gavin Doyle, founder of MickeyVisit.com, said Disney’s lack of ownership of the upcoming theme park will have “little financial risk” due to it being structured as a royalty deal.
Iger did not specify when the new theme park will officially open, but said that while the location is in development, Disney will continue to work on additional expansion projects.
“As we prepare to embark on this exciting new addition to our experiences portfolio, we already have more expansion projects underway domestically and around the world than at any time in our history,” said Iger. “That includes investing more than $30,000,000,000 in our theme parks in Florida and California to enhance our offerings, create jobs, and support the U.S. economy.”
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