June 23, 2024

Brighton Journal

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Disney is investing more in parks and cruises

Disney is investing more in parks and cruises
  • Disney said Tuesday it will nearly double its planned investment to nearly $60 billion in its theme parks business.
  • Theme parks have been a relative bright spot as the company struggles to turn a profit from streaming.
  • However, local parks, especially Walt Disney World in Florida, have seen a slowdown in attendance and purchases of hotel rooms.

Disney World celebrated its 50th anniversary in April 2022.

Harunb | Power Griffin | GC Photos | Getty Images

Disney said Tuesday it will nearly double its planned investment in the company’s theme parks and cruise businesses.

The company said in securities Deposit It will nearly double its planned investments to nearly $60 billion over 10 years.

As the company grapples with the changing media and entertainment landscape — and tries to make its streaming business profitable while considering traditional TV network sales — its theme parks, experiences and products division has been a bright spot.

However, local parks, especially Walt Disney World in Florida, have seen a slowdown in attendance and purchases of hotel rooms. Instead, the sector’s strength came from its international parks. During the third quarter, the division saw revenue increase 13% to $8.3 billion.

The company will reveal more details about the investment at its investor day on Tuesday.

Disney highlighted the historic results of its parks and experiences business since 2017 on the back of increased investment. Disney parks, like their counterparts, have struggled during pandemic closures.

Its peers, including Comcast Universal Parks in Florida, saw a similar slowdown.

The increased investment comes as Disney is embroiled in lawsuits with Florida Governor Ron DeSantis, which could impact its proposed expansion of the Orlando location over the coming years.

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Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.

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