BURBANK, California—The Walt Disney Company today reported earnings for its fiscal year and fourth quarter ended October 1, 2011. Diluted earnings per share (EPS) for the year increased 24% to $2.52 from $2.03 in the prior year. For the quarter, diluted EPS was $0.58 compared to $0.43 in the prior-year quarter.
“Fiscal 2011 was a great year financially and strategically, demonstrating the strength of our brands and businesses with record revenue, net income and earnings per share,” said Disney President and CEO Robert A. Iger. “We are confident the Company is well-positioned to deliver long-term value for our shareholders with our focus on quality content, compelling uses of technology and global asset growth.”
Parks and Resorts
Parks and Resorts revenues for the year increased 10% to $11.8 billion and segment operating income increased 18% to $1.6 billion. For the quarter, revenues increased 11% to $3.1 billion and segment operating income increased 33% to $421 million.
Results for the year reflected increases at our domestic parks and resorts and at Hong Kong Disneyland Resort. These increases were partially offset by costs for our new Aulani hotel and vacation club resort in Hawaii, which opened during the quarter, and a decrease at Tokyo Disney Resort driven by the temporary closure of the resort following the March 2011 earthquake in Japan.
Higher operating income at our domestic parks and resorts was driven by increased guest spending and, to a lesser extent, attendance, partially offset by increased costs. Increased guest spending reflected higher average ticket prices, daily hotel room rates and food, beverage and merchandise spending. Increased costs reflected labor cost inflation, enhancement and expansion costs, including new guest offerings at Disney California Adventure, and investments in our systems infrastructure. Additionally, higher pension and post-retirement medical expenses contributed to increased costs.
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Higher operating income at Hong Kong Disneyland Resort reflected higher attendance and guest spending which was driven by higher daily hotel room rates, merchandise, food and beverage spending, and average ticket prices. Results at Disneyland Paris were comparable to the prior year as increased costs and the absence of a prior-year sale of real estate were largely offset by increased guest spending, attendance, and hotel occupancy. Increased costs at Disneyland Paris were driven by labor cost inflation, volume-related costs, new guest offerings and repairs and maintenance. Higher guest spending reflected higher daily hotel room rates, food, beverage and merchandise spending, and average ticket prices.
For the quarter, results reflected increases at our domestic parks and resorts, Disney Cruise Line, Hong Kong Disneyland Resort and Disneyland Paris, partially offset by costs for our new Aulani hotel and vacation club resort and lower vacation ownership sales at Disney Vacation Club.
Higher operating income at our domestic parks and resorts was driven by higher guest spending, partially offset by increased costs. Increased guest spending benefitted from higher average ticket prices, food, beverage and merchandise spending, and daily hotel room rates. Higher costs reflected labor cost inflation, increased support costs, higher pension and post-retirement medical expenses, and new guest offerings at Disney California Adventure. Higher operating income at Disney Cruise Line was due to increased passenger cruise ship days driven by the Disney Dream, partially offset by the related operating costs. The decrease at Disney Vacation Club was due to lower vacation ownership sales. Higher operating income at Hong Kong Disneyland Resort was driven by higher attendance and increased guest spending, while the increase at Disneyland Paris reflected higher guest spending. Increased guest spending at Hong Kong Disneyland Resort was driven by higher average daily hotel room rates, merchandise, food and beverage spending and average ticket prices. At Disneyland Paris, the increase in guest spending reflected higher average ticket prices and daily hotel room rates.