Disney’s ‘massive recovery’ is still in the early innings as parks business bounces back with a vengeance
Walt Disney Co. isn’t just seeing a pandemic recovery in its parks business—it’s also setting records in the process.
Shares of Disney
are up 4% in Thursday afternoon trading after the entertainment giant delivered a better-than-expected fiscal first-quarter earnings report that was highlighted by what the company said were new revenue and operating-income records in its domestic parks and resorts business.
One striking statistic was that, from the September quarter to the December quarter, Disney grew domestic parks revenue by $1.33 billion while it increased domestic parks profits by “a nearly identical” $1.31 billion, noted MoffettNathanson analyst Michael Nathanson.
“In other words, in a period of rising inflation, the domestic park business added zero incremental costs as revenues surged,” he wrote. Nathanson said the parks rebound…