Disney shares pulled back 2% in early trading after the media giant unveiled a comprehensive plan to double its investment in theme parks to $60 billion over the next 10 years.
In an SEC filing, slide presentation and blog post, the company said its theme parks were humming along, but could evolve into an even more potent engine of profitability. The strategic focus in recent weeks has been on legacy media assets like linear TV networks and ESPN and how Disney plans to address the financial vulnerabilities they bring.
The parks message was delivered as CEO Bob Iger and Disney Parks, Experiences and Products Chairman Josh D’Amaro meet with Wall Street analysts and investors at Walt Disney World Resort in Orlando, FL for a parks-themed investor summit.
In the blog post, the company said the investment-heavy strategy will center on “stories, scale, and fans.”
DPEP revenue is on pace to reach $32.3 billion in the current fiscal year, up from $23.5 billion in fiscal 2017, with operating income climbing to $9.2 billion from $6 billion over that same span.
Covid-19 forced the shuttering of the parks, along with cruise ships and resorts, for several months in 2020, with variants and recurrences of the virus forcing select shutdowns into 2022.
In addition to highlighting that comeback and growth story, the blog post makes the case that there are many more horizons for the company to explore.
“In addition to development plans already underway, there is significant room for further expansion on land and at sea,” the post says. “In fact, Disney Parks has over 1,000 acres of land for possible future development to expand theme park space across its existing sites – the equivalent of about seven new Disneyland Parks.”
MORE to come …
