Disney’s Theme Parks and Interactive Media Divisions Boost Company’s Fourth Quarter Profits

The Walt Disney Company has reported a positive end to its fourth quarter and fiscal year, reporting a 7 percent increase in revenue for the year and an 8 percent increase in net income.

The positive quarter-and year-end results were due in large part to the theme park and interactive segments, including sales of Disney Infinity.

At the theme parks, higher attendance and an increase in per capita guest spending boosted income. According to the company's report the positive results for the quarter reflected growth at the domestic parks and an increase in Disney Vacation Club ownership sales. On the flip side, Disneyland Paris continued its slump.

Additionally, higher ticket prices and increased food and merchandise prices at Walt Disney World Resort and Disneyland contributed to a 9 percent increase in per capita spending at those two parks. The higher costs were due to spending on MyMagic+ in addition to labor and other cost inflation.

We're extremely pleased with our results for Fiscal 2013, delivering record revenue, net income and earnings per share for the third year in a row," said Robert A. Iger, Chairman and CEO, The Walt Disney Company. "It was another great year for the Company, both creatively and financially, and we remain confident that we are well positioned to continue our strong performance and drive long-term shareholder value.

Another area that saw growth in the last quarter was Disney's interactive media division where Disney Infinity topped sales of 1 million starter packs. Revenues in this division were up 107 percent to $396 million and operating income was $16 million. During the same period last year the division lost $76 million.

The Walt Disney Studios' revenue for the fourth quarter increased 7 percent to $1.5 billion and operating income increased by $28 million to $108 million. The revenue for the year increased 3 percent to $6 billion, and operating income decreased $61 million to $661 million, due in part to a decrease in home entertainment results driven by decreased sales this year compared to last year. The studio also had to deal with the write down of the box office disaster The Lone Ranger.

However, the studios have a strong slate of movies lined up for the next year including the now open Thor: The Dark World, and the upcoming Saving Mr. Banks and Captain America: The Winter Soldier.

Looking to the future
, holiday sales of Infinity will be crucial for the continued success of the interactive division, and there are upcoming projects likely to have an impact on revenue and income including the highly anticipated full roll-out of MyMagic+ and spending as Shanghai Disneyland construction speeds up.


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