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Disney Parks and Experiences Overcomes Stormy Start to Q1 2025 with Strong International Growth
Despite facing the disruptive forces of Hurricanes Milton and Helene, Disney Parks and Experiences division powered through the first quarter of fiscal 2025, which ended on December 28, 2024, with a solid $9.4 billion in revenue, marking a 3% increase from the previous year. While domestic parks felt the sting of closures and cancellations, international parks thrived, driving impressive growth in attendance and guest spending. With major investments fueling future expansion, Disney remains steadfast in its commitment to delivering world-class experiences and long-term profitability.
Related: Walt Disney Company First Quarter Earnings for Fiscal 2025
Domestic Parks and Experiences: Weathering the Storm
Disney’s domestic parks, including Disneyland Resort, Walt Disney World Resort, and Disney Cruise Line, generated $6.4 billion in revenue, reflecting a modest 2% increase year-over-year. However, operating income dipped 5% to $1.98 billion, largely due to the disruptions caused by Hurricanes Milton and Helene. The temporary closure of Walt Disney World and the cancellation of a Disney Cruise Line itinerary impacted attendance and revenue.
Despite these setbacks, Disney saw higher guest spending, which helped offset some of the losses. Costs rose due to inflation and the expansion of Disney Cruise Line, particularly as the company gears up for the debut of the highly anticipated Disney Treasure.
International Parks and Experiences: A Bright Spot
While domestic parks faced challenges, Disney’s international resorts shined. Revenue climbed 12% to $1.65 billion, with operating income soaring 28% to $420 million. The surge was fueled by increased attendance, higher guest spending, and new guest experiences at Disneyland Paris and Shanghai Disney Resort.
Consumer Products: A Slight Dip Amid Stability
Disney’s Consumer Products division, which includes merchandise, toys, and licensing deals, reported a slight 2% revenue decline to $1.34 billion. However, operating income held steady at $708 million, demonstrating strong cost management.
Overall Financial Performance: A Profitable Quarter
Across all divisions, The Walt Disney Company delivered $24.7 billion in total revenue for Q1 2025, a 5% increase from the prior year. Income before taxes surged 27% to $3.7 billion, while total segment operating income jumped 31% to $5.1 billion. Shareholders saw significant returns, with diluted earnings per share (EPS) rising 35% to $1.40 and adjusted EPS climbing 44% to $1.76.
Related: Oriental Land Co. and Partners to Operate Latest Disney Cruise Ship
Massive Investments Signal Future Growth
Disney’s commitment to expanding its parks and cruise offerings was evident in its Q1 investments. The company spent $2.08 billion on domestic and international resort expansions—more than doubling the $815 million spent in Q1 2024. These investments support ongoing projects such as Disney Cruise Line’s fleet expansion, Disneyland and Walt Disney World enhancements, and continued growth in international markets.
Looking Ahead
Despite a rocky start, Disney’s Parks and Experiences division is poised for continued success. With international parks thriving, new cruise ships on the horizon, and strategic investments fueling future growth, Disney remains a dominant force in the global entertainment industry. The momentum from Q1 sets a promising tone for the rest of the fiscal year.
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