The Walt Disney Company stock is trading lower today as the leading entertainment company announced plans to double investment in its parks and cruise line business.
According to a recently published Securities and Exchange Commission filing, Disney will allocate $60 billion over the next decade to expand and enhance its Parks and Experiences business.
Last month, The Walt Disney Company (NYSE: DIS) reported approximately $8.3 billion in revenue from Parks and Experiences for the third quarter, marking a 13% increase from the same period in the previous year. This accounts for roughly 37% of the group’s total revenue.
The Parks and Experiences division also emerged as the most profitable segment by operating income, generating $2.425 billion in operating profits—an 11% rise compared to the previous year. This robust performance offset an 18% decline in the Media and Entertainment Distribution segment.
In addition, Disney also announced plans to open expansions at its Shanghai Disney Resort and Hong Kong Disneyland later this year.
Despite already having the largest physical footprint among global theme park businesses, Disney also revealed that it possesses more than 1,000 acres of land surrounding existing sites, which could be utilized to expand capacity.
Furthermore, Disney mentioned that approximately 100 million individuals visit Disney Parks annually, and it perceives an opportunity to welcome a much larger audience. The company stated in its release that there is still substantial untapped potential for reaching more consumers.
Disney’s internal research indicates an addressable market of over 700 million individuals with a strong affinity for Disney who have not yet visited its Parks. In fact, for every guest who visits a Disney Park, there are more than ten people with a high Disney affinity who have yet to experience the Parks.
As of the latest update, The Walt Disney Company stock is trading at $81.72, down -0.34% compared to the previous trading session.
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