Disney held its first earnings call since Disney CEO Josh D’Amaro took over the company in March. During the call, it was revealed that the House of Mouse had beaten earnings estimates. This came as Disney’s Experiences division saw a 5% increase in its operating income, and its Entertainment division saw a 6% increase. It was the strongest quarter for the Entertainment division in six quarters.
Along with the financial news that was included during the call, D’Amaro also shared a look at what the future will look like under his leadership. “Our creative and operational momentum drove strong quarterly results, and we continue to expect growth to accelerate in the second half of the fiscal year,” D’Amaro wrote in a letter to shareholders. technology innovation, while advancing ESPN’s direct-to-consumer future,” D’Amaro wrote in his letter to shareholders. “We are strengthening streaming through continued investment in the creative storytelling that defines us and in product and
technology innovation, while advancing ESPN’s direct-to-consumer future,” D’Amaro continued.
“We’ll enhance technology more aggressively and build a more connected consumer experience with Disney+ right at the center,” D’Amaro said on an earnings call. ”The key here is fully leveraging our IP across our company.” There is also growth globally, D’Amaro shared. ”We are focused on scaling the business outside the U.S.”
A big part of D’Amaro’s history with Disney has been connected with Experiences, the segment he ran before being appointed as CEO. The segment brought in revenue of $9.5 billion for the quarter. Last year, during the same time period, the segment had a revenue stream of $8.9 billion. While it was acknowledged that global events could impact this segment, future plans were also confirmed. This includes the plans for Disneyland Abu Dhabi.
Last year, Disneyland Abu Dhabi was announced by D’Amaro and then-Disney CEO Bob Iger. It will be the seventh Disney resort globally. It also promises to be Disney’s most immersive and technologically advanced. D’Amaro has shared with Reuters that it will take a year or two to design this new park and four to six years to build. This could set an opening for this resort sometime around 2030.
In his letter to investors, D’Amaro confirmed plans for Disneyland Abu Dhabi, saying, “We have multiple experience expansions underway using a capital-light model, including working with established local operators to bring a new cruise ship to Japan and a theme park resort to Abu Dhabi. The strategic logic of our Abu Dhabi plans is unchanged. Major new theme parks are necessarily longterm in nature given the lead time of these projects, and this investment approach has consistently benefited our business.”
The model D’Amaro is referring to is central to the deal that Disney made with Miral for this new resort. Miral will be paying for its development and construction, and then ultimately operate the resort as well. Disney and Walt Disney Imagineering will lead the creative design and provide operational oversight to ensure the full Disney experience that guests have come to know and love. This is a business model that is similar to how Tokyo Disney Resort is owned and operated by the Oriental Land Company in Japan.
Disneyland Abu Dhabi will provide an opportunity for fans to experience Disney magic in a new area of the world that currently does not have any Disney destinations. The UAE is within four hours by flight to a third of the world’s population and is a significant gateway for tourism. It is also the home of the largest global airline hub in the world. 120 million passengers travel through Abu Dhabi and Dubai each year.
“This groundbreaking resort destination represents a new frontier in theme park development,” said Josh D’Amaro, Chairman, Disney Experiences said when the project was announced. “Our resort in Abu Dhabi will be the most advanced and interactive destination in our portfolio. The location of our park is incredibly unique – anchored by a beautiful waterfront – which will allow us to tell our stories in completely new ways. This project will reach guests in a whole new part of the world, welcoming more families to experience Disney than ever before. Ultimately, it will be a celebration of what’s possible when creativity and progress come together.”
Once the new Disneyland Abu Dhabi is completed, it will offer signature Disney entertainment, themed accommodations, unique dining and retail experiences, and storytelling. This will all be done in a way that celebrates the history and heritage of Disney, along with the futuristic and cultural essence of Abu Dhabi.
