On Tuesday, Disney said that it would almost treble its initial investment in the company’s parks and cruises division.
KEY POINTS
- On Tuesday, Disney said that it will nearly quadruple its initial $60 billion investment in its parks division.
- While the business struggles to turn a profit on streaming, theme parks have been a relative bright spot.
- Nevertheless, domestic parks have suffered a slowdown in visitors and hotel room purchases, particularly Walt Disney World in Florida.
In a securities filing, the corporation declared that it would almost quadruple its initial investment over a ten-year period, reaching over $60 billion.
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The theme parks, experiences, and goods segment has been a bright spot for the corporation despite its struggles with the evolving media and entertainment market and its attempts to turn a profit on its streaming business while taking sales of its traditional TV networks into account.
However, visitor numbers and hotel room bookings have declined in the domestic theme parks, particularly Walt Disney World in Florida. Instead, the segment’s foreign parks have been its main source of strength. The division’s third-quarter revenue increased by 13% to $8.3 billion.
On Tuesday during its investor day, the company will provide more information regarding the investment. Due to increased investment, they emphasized the historical performance of the parks and experiences division since 2017. Like its competitors, It’s parks suffered during the pandemic’s lockdowns.
Comparable businesses, such as Comcast’s Universal parks in Florida, saw a slowdown.
The increased investment comes as Disney is battling Florida Governor Ron DeSantis in court, which could have an impact on its plan to grow the Orlando location in the future years.
The Birth of Disney
The Walt Disney Company was established in 1923 by visionary artist and storyteller Walt Disney. His vision was to provide a location where people of all ages could enter fantasy worlds full of wonder and adventure. The iconic Mickey Mouse, a popular mascot known worldwide, was created as a result of this desire.
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