People walk in front of Cinderella Castle at Walt Disney World’s Magic Kingdom Park on May 31, 2024 in Orlando, Florida.
Gary Hershawn | Corbis News | Getty Images
Not only Magic Kingdom, but all of Disney’s other theme parks are doing well.
The company’s Experiences division, which includes parks, cruise ships, hotels and consumer products, posted record revenue in the fiscal first quarter, topping $10 billion for the first time in Disney’s more than 100-year history. Operating income was $3.3 billion, an increase of 6% from the same period last year.
Growth in this sector has accelerated in the wake of the coronavirus pandemic. It often accounts for the majority of a company’s profits. For the period ending Dec. 27, Experiences accounted for 38% of Disney’s total revenue but generated a whopping 71% of its operating profit.
Company executives expect the good times to continue, with the division’s operating profit expected to grow in the low single digits in fiscal 2026.
“If you look at our business footprint today, it’s broader and more diverse than ever before,” Disney CEO Bob Iger said during an earnings call Monday. “And the projects we have underway will further facilitate that.”
The park’s strong performance comes against the backdrop of a CEO succession race, with Disney Experience Chairman Josh D’Amaro likely to succeed Mr. Iger. Disney’s board of directors is scheduled to meet this week to vote on the company’s next CEO, said the people, who asked not to be identified discussing internal matters.
Industry and Disney officials expect D’Amaro to be named Iger’s successor, but the decision ultimately rests with the Disney board and will not be finalized until the board votes.
“The Board of Directors has not yet chosen the next CEO of The Walt Disney Company. We will make an announcement once a decision is made,” a Disney spokesperson said in a statement, declining to comment on when the next board meeting will be held.
park expansion
Much of the experience sector’s success is due to major investments in expanding Disney’s theme park footprint, renovating existing rides and themed areas, adding cruise ships to its fleet, and increasing its presence in digital games. This new evolution in the field is fueled by Disney’s franchise library and iconic intellectual property.
Disney has long distanced itself from its content portfolio. Disneyland opened more than 70 years ago with rides themed to Alice in Wonderland, Ichabod and the Toad, Peter Pan, and Snow White and the Seven Dwarfs.
While these classic charms remain, the company’s recent development has been fueled by Iger’s strategic acquisitions of four major film studios: Pixar in 2006, Marvel in 2009, Lucasfilm in 2012, and 20th Century Fox in 2019. This brought coveted franchises such as Star Wars, Toy Story, The Avengers and Avatar under the House of Mouse umbrella.
“By adding intellectual property to our stable of assets, we had access to intellectual property that had real value with respect to our parks and resorts, and we were able to rely on more capital investment because we were confident of increasing profitability,” Iger said.
Acquiring film and television rights to these properties will give the company more control over production and how it translates into rides, experiences, and merchandise.
And that work will continue as part of a 10-year, $60 billion investment effort that began in 2023.
“We have expansion projects underway at all of our theme parks,” Iger said.
He touted the upcoming opening of Frozen World at Disneyland Paris and the launch of the new Disney Adventure cruise ship, which will dock in Asia.
Also on the horizon is a new villainous land in the Magic Kingdom, and the reshaping of the Rivers of America, Tom Sawyer Island, and the Liberty Square Riverboat into an area called Piston Peak. This is the second Cars-themed land modeled after an American natural park. A new “Monsters, Inc.” will be born at Hollywood Studios. Landing while the Muppets take over the Rock ‘n’ Roller Coaster attraction. Animal Kingdom will host the “Encanto” ride and the new “Indiana Jones” ride.
Disneyland will add two new attractions to Avengers Campus, a Marvel-themed area that will give guests a glimpse of the land of the dead in “Coco,” and Disney will build a new “Avatar” area inspired by the scenery in “Avatar: Fire and Ash.”
Internationally, Disney has signed a deal to bring a new park and resort to Yas Island in the United Arab Emirates.
international headwinds
Iger said the company’s efforts to bring popular IP to its parks are paying off, especially outside the United States.
“The percentage of people who go to Shanghai Disneyland just to go to Zootopialand is very high,” he said on Monday.
Revenue from international theme parks and experiences increased 7% to $1.75 billion in the fiscal first quarter.
Of course, the company still faces headwinds from a decline in international visitors to its domestic parks.
This is a trend that many theme park destinations in the US are grappling with, with overall tourism to the US declining by 6% in 2025. Industry analysts point to rising travel costs and fees, ongoing trade tensions and geopolitical unrest for the decline in demand for travel within the United States.
Nevertheless, domestic theme park and experience revenue rose 7% to $6.91 billion in the quarter.
New offerings at Disney’s international parks, the launch of a cruise ship serving Asia, and the new Abu Dhabi park are all ways Disney is tapping into international markets and engaging with consumers who don’t travel to domestic destinations.
— CNBC’s Julia Boorstin and Alex Sherman contributed to this report.
