NEWS: The Walt Disney Company sees record profits in 2011

[jedimaster1227]

http://www.orlandosentinel.com/the-daily-disney/os-disney-annual-earnings-20111110,0,70269.story

 

The Walt Disney Co. said Thursday it set company records in sales and profit during its 2011 fiscal year despite a challenging global economy, as the entertainment giant was powered by growth at its cable-TV channels and a spending rebound at its theme parks.

 

The announcement followed a fiscal fourth quarter in which Disney said net income leapt 30 percent, to $1.1 billion from $835 million a year ago. Total revenue rose 7 percent to $10.4 billion for the quarter, which ended Oct. 1.

 

"Fiscal 2011 was a great year financially and strategically, demonstrating the strength of our brands and businesses with record revenue, net income and earnings per share," Disney President and Chief Executive Officer Bob Iger said in a prepared statement. "We are confident the company is well-positioned to deliver long-term value for our shareholders with our focus on quality content, compelling uses of technology and global asset growth."

 

For the year, Burbank, Calif.-based Disney said it earned $4.8 billion, up 21 percent from 2010, on $40.9 billion in sales, up 7 percent.

 

Results improved significantly at the company's theme-parks division, which was forced to resort to steep discounts to lure traffic during the global recession. Fourth-quarter operating profit at Walt Disney Parks and Resorts jumped 33 percent to $421 million on revenue that rose 11 percent $3.1 billion.

 

Disney said the increase was driven by improved guest spending at Walt Disney World and Disneyland in Anaheim, Calif., thanks to higher average ticket prices and nightly hotel room rates, as well as increased spending on food, beverage and merchandise. Results also jumped at Disney Cruise Line, which earlier this year launched the $900 million Disney Dream cruise ship, as well as Hong Kong Disneyland and Disneyland Paris.

 

Business sagged, however, at the company's time-share business, Disney Vacation Club, which was temporarily forced to halt sales at a new Hawaiian resort after discovering a financial error. Disney also said costs associated with the opening of that resort, Aulani, also ate into results.

 

For the year, parks-and-resorts operating income climbed 18 percent, to $1.6 billion, on sales that rose 10 percent, to $11.8 billion. Disney again credited spending gains at its U.S. theme parks, as well as slightly higher attendance, and improvement at its Hong Kong resort, which were partially offset by costs associated with Aulani and the temporary closure of Tokyo Disney following the March earthquake and tsunami in Japan.

 

It is great to see that despite setbacks with Aulani and the tsunami in Japan, the Walt Disney Company had a fiscally successful year. Not only did the increased ticket prices help to raise profits, but customer spending seemed to increase. Especially in the Parks & Resorts division, a 33 percent increase in revenue is excellent!

[DJeXeL]

Can't honestly say I'm all that surprised.

[Wes]

Let me eloquently say:

 

[gisco]

With the increased profit do you think they will lower ticket prices?

[COASTER FREAK 11]

^Maybe they will add rock work to the back side of Carsland!

 

This is good to hear!!

[SharkTums]

I take partial responsibility for this! With the amount we spent at Tokyo Disney Resort, Bibbidi Bobbidi Boutique, and now buying THREE annual passes...yeah, you can all thank me!

[Sir Clinksalot]

Will be interesting to see where these numbers go next year with the opening of CarsLand and the new Fantasyland.

 

I haven't been keeping up with the offshore parks, any of them getting anything major next year?

 

We are going to be buying 4 "Premiere" passes next year. Ugh ... I mean YAY!!!

Edited November 10, 2011 by Sir Clinksalot

[ILoveRides]

^^^ For every 1% increase in profits, they add 1% more rocks. Go spend your money people, we need more rocks!