Disney sees "enormous" opportunities with Disney Cruise Line, CFO Hugh Johnston said Tuesday on the company's fiscal Q2 earnings call.
Disney Cruise Line was a significant contributor to revenue and operating income growth in Disney's Parks and Experiences business.
"The cruise business, frankly, is one that has an enormous opportunity for us over time, and that is why we are leaning more heavily into that business," Johnston said, adding that cruises have "the highest guest satisfaction scores in the company."
Johnston pointed to the upcoming Disney Treasure, a ship making its maiden cruise in December; the Disney Adventure, which will be the first Disney ship based in Asia; and private island Lookout Cay at Lighthouse Point, opening this June.
"This is a business with a lot of runway left in it, and that will deliver great returns to our shareholders," Johnston said.
Disneyland expansion
Meanwhile, CEO Bob Iger said the company looks forward to the expansion of the Disneyland Resort in Anaheim, Calif.
DisneylandForward, the initiative to expand Disneyland's parks in the limited amount of space availaable, received unanimous preliminary approval from the Anaheim City Council last month, Iger said. A final vote is expected Tuesday evening.
Iger said Disney is "incredibly excited" about the experiences that could be built, "including the much-anticipated opportunity to bring Avatar to Disneyland."
Theme park attendance normalizes
Revenue for Disney's domestic parks and experiences business was up 7% to $5.96 billion in the quarter. International parks and experiences were up 29% to $1.52 billion.
Operating income for domestic parks and experiences was up 6% to $1.61 billion, while operating income for international parks and experiences soared 87% to $292 million.
Johnston said the growth in international parks and experiences was driven by Hong Kong Disneyland. Domestically, the Walt Disney World Resort and Disney Cruise Line were big contributors to growth.
At Disneyland, despite growing attendance and per capita spending, results were down due to cost inflation, Johnston said, including higher labor expenses.
Johnston noted that attendance levels at Disney parks are starting to "normalize" post-Covid, but the company is "still seeing healthy demand."