In its fiscal year 2011 which ended September 30, 2011, The Walt Disney Company posted a record profit $4.8 billion dollars. However Disney Vacation Club performance declined, largely due to issues surrounding the Aulani resort project in Hawai'i.
Profits for the fourth quarter were up 30% from a year ago to $1.1 billion. Disney's television unit was responsible for much of the increase with ESPN and the Disney Channel noted.
Disney Parks and Resorts division profits increased 33% in the 4th quarter compared to the prior year. For the full year attendance was up marginally at its domestic theme parks, but profits were boosted sharply by higher overall guest spending. Contributing to the higher spending were increased ticket prices and higher room rates achieved via reduced discounting.
Hotel bookings for the first quarter of 2012 are on par with 2011 while room rates are up from the prior year.
Disney also claimed that attendance and guest spending were up at Hong Kong Disneyland, spending was up at Disneyland Paris and they are pleased with the pace of recovery at the Tokyo Disney parks following May's earthquake and tsunami.
Meanwhile, Disney Vacation Club experienced a setback in fiscal 2011, largely attributed to licensing issues with Aulani, Disney Vacation Club Villas. Thie Orlando Sentinel had this to say regarding DVC performance:
Sales fell at Disney Vacation Club, the company's Celebration-based time-share business, which this summer was forced to temporarily halt sales of new units in a new Hawaiian resort after the company discovered a financial error. Disney also said costs associated with the opening of that resort, named Aulani, weighed on the quarter's results.
Disney was forced to shut down Aulani sales for more than 2 months, and is still addressing contractual issues with current owners which resulted from a miscalculation of operating costs.
Disney's Parks and Resorts division produced revenue of $10.8 billion for the year, up 3% over the 2008 pre-recession peak. However, profits are still down 18% compared to '08, largely due to continued hotel room discounting and large-scale capital spending including Aulani, two new cruise ships and park expansions including the $1.2 billion investment in Disney California Adventure and Walt Disney World's Fantasyland expansion.
Additional Information: Orlando Sentinel
