The Walt Disney Company (NYSE:DIS) is using a mash-up of the old and new to keep itself relevant in its second century of existence.
The new is the company's digital business and very well it is doing too while the old, specifically the theme parks that came to overshadow the film-making business in the final quarter of the twentieth century and the early years of the twenty-first, is arguably doing even better.
After sparkling results released last night, that saw earnings comfortably top expectations, much of the attention was on the surprisingly strong growth in subscriber numbers for Disney+ and what it means for the company and rivals, such as Netflix; however, chief executive officer Bob Chapek was keen to emphasise the rebound enjoyed by the company's iconic theme parks.
“I could not be more pleased with the performance of our Parks, Experiences and Products segment, which posted its second-best quarter of all time. Over the last several years, we've transformed the guest experience by investing in new storytelling and ground-breaking technology and the records at our domestic parks are the direct result of this investment,” Chapek told investment analysts.
“At the same time, we're giving guests new tools to personalise their visits and spend less time in line and more time having fun. While we anticipated these products would be popular, we have been blown away by the reception. In the quarter, more than one-third of domestic park guests purchased either Genie+, Lightning Lane or both. That number rose to more than 50% during the holiday period,” he added.
Lightning Lane is the company’s new name for its FastPass+ pass that effectively allows customers to jump the queue. It’s similar to the systems used by Merlin Entertainments (AIM:MERL), and Six Flags Entertainment (NYSE:SIX) Corporation at their parks, the technology for which is provided by AIM-listed accesso Technology Group PLC.
The uptake of this service seems to reinforce views that consumers, tired of lockdown restrictions, are ready to splash the cash to make their amusement and entertainment parks experience more enjoyable.
The company increased ticket prices early in the final quarter of 2021 but it did not seem to deter customers.
For the year as a whole, the company’s Parks, Experiences and Products segment saw revenues soar to US$7.23bn from US$3.59bn in 2020 when the company’s theme parks were closed for long periods.
Analysts had pencilled in a revenue figure of US$6.36bn so a number of US$7.23bn is, to use a well-worn phrase, taking the Mickey.