Despite political turmoil as told to NATHAN REIFF, A release date of May 13, 2022, is given.
The Walt Disney Company (DIS) reported a year-over-year increase in Parks, Experiences, and Products sales of more than 100% in the second quarter of the fiscal year 2022 (mid-May) (YOY).
One of the most damaged industries by the pandemic shutdowns in 2020 and 2021 was the tourism industry, including Disney’s famous theme parks, resorts, cruise ships, and other activities.
The company’s latest profits report may indicate that it is not just bouncing back strongly from the early phases of the epidemic but also enduring political blowback over its continuing disputes with Florida politicians.
CONCLUSIONS AND RECOMMENDATIONS:
Disney’s Q2 FY 2022 financial release showed that the business division, including theme parks, saw more than 100% YoY revenue growth.
Even though several of Disney’s overseas parks remain closed due to the COVID-19 epidemic and international visitor attendance at domestic parks has been low, the company has nonetheless managed to post strong revenue results.
The recent success of Disney’s theme parks may indicate that the firm is in good shape to continue recovering from the epidemic.
Attendance at Theme Parks Continues to Grow Despite Struggles
There is space for growth in Disney’s parks division, which generated $7.2 billion in sales for the sector encompassing theme parks in Q2 FY 2022. According to a February business statement, domestic gardens still have not witnessed a significant increase in overseas visitors. In addition, not all international parks have opened to the public in the most recent quarter.
This month, the head of Disney’s corporate relations department, who had only been there for roughly four months, suddenly resigned. It was one fallout from the widely publicized spat between the corporation and Florida politicians over the latter state’s “Don’t Say Gay” policy. Disneyworld in Orlando, Florida, lost its autonomy in a decision by Florida lawmakers in April. As a result of the argument, some conservative lawmakers and activists have called for a boycott of the business.
Repercussions for Financial Backers:
That Disney’s theme park business increased rapidly in the first three months of the year suggests, at the very least, that domestic visitors have not avoided the parks out of fear of the epidemic. In light of this, investors who have been preoccupied with Disney’s new high-profile streaming service, Disney+, may want to take a closer look at the company’s more conventional income sources.
Investors may take the second quarter’s sales numbers with a grain of salt as evidence that the most vocal critics of Disney have failed to boycott the company successfully. It’s important to note that the time covered by the Q2 parks income increase is only up to and including April 2, 2022, so it ends before the most acrimonious negotiations take place.
For a complete understanding of the possible effect of this issue, investors may need to wait until the business reports profits for Q3 of FY 2022.
How Successful Are Disney’s Parks?
For the fiscal quarter ending April 2, 2022, Disney stated that its sector, which includes theme parks, had sales approximately quadruple YOY.
What Influences Do Disney’s Theme Parks Have on Attendance?
The widespread COVID-19 virus infection that occurred in recent years forced the closure or drastic reduction of operations at several of Disney’s amusement parks is a major contributing cause. More recently, political backlash over Disney’s backing for Florida’s so-called “Don’t Say Gay” statute has also played a role.
To what extent should investors consider Disney’s theme park performance?
Investors should consider Disney’s global theme parks and other tried-and-true income generators when considering the company’s long-term prospects during the worldwide flu epidemic. However, the full effect of the political dispute in Florida on Disney’s theme park industry is still unknown.
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