Hong Kong Disneyland profit drops 36% to HK$536 million as costs rise

Hong Kong Disneyland Resort posted a 36 per cent drop in net profit to HK$536 million (US$68 million) last year, due to higher costs, increased outbound travel by residents and weather disruptions, although earnings were the second-highest on record and the theme park is now debt-free. The Lantau Island theme park on Tuesday reported its results for the financial year ending last September, with revenue down by 1.35 per cent year on year to HK$8.69 billion and visitor numbers falling by 2.5 per cent to 7.5 million, from a record 7.7 million in 2023-24. Tim Sypko, the park’s managing director, said costs rose last year amid higher wages, anniversary-related expenses and depreciation charges tied to new attractions. He said last year’s net profit was still the second-highest in its 20-year history, adding that the resort used the earnings to repay all debts owed to its shareholders and reinvested part of them in new attractions. “The results demonstrated a very healthy business here in Hong Kong Disneyland,” Sypko said. “For the first time in our resort’s history, we are completely debt-free.” He said the business performed well in the first six months of the financial year ending March 31. “The strength we saw last year was seen in the first few months of the financial year,” he said. The Hong Kong government owns a 52 per cent stake in the park, while the remaining share is held by US-based Walt Disney Company through a joint venture, Hong Kong International Theme Parks. According to a Legislative Council paper issued on Tuesday, the Tourism Commission and the Culture, Sports and Tourism Bureau said the theme park had a net cash inflow of HK$2 billion and repaid all the term loans to its two shareholders. The resort “marked a sustained turnaround in its financial performance and reinforced the government’s confidence in its long-term business trajectory and growth potential”, the paper said. It said the total value-added generated by the resort amounted to HK$167.5 billion, equivalent to 0.31 per cent of Hong Kong’s GDP during its 20 years of operation. A total of 342,100 jobs, in terms of man-years, were also created over these years for frontline workers and the travel industry, it added. In the last financial year, costs and expenses jumped by 3.3 per cent to HK$6.7 billion. Earnings before interest, taxes, depreciation and amortisation (Ebitda) declined 14.3 per cent to HK$1.98 billion. The decline in spending per room guest – the amount of daily room revenue divided by total number of hotel guests – widened to 6 per cent last year from 2 per cent in 2024 even though occupancy was higher at 79 per cent compared with 73 per cent previously. The park reported a slight decline in visitor numbers during the last financial year, while growth in average per capita spending slowed to 2 per cent from 28 per cent previously, despite per guest spending reaching a record high. Sypko said the ratio of Hongkongers in guest demographics fell to 36 per cent of all visitors, compared with 40 per cent the previous year, because of their overseas travel. Mainland Chinese visitors made up the biggest group of customers, representing 39 per cent last year. That was up marginally from 38 per cent the year earlier. The rest, or 25 per cent, were from markets such as the Philippines, Japan and Taiwan, an increase from 22 per cent the previous year. He said that 15 typhoons, including several super typhoons and five black rainstorms last year, forced the park to close. “Last year was unusual and the weather is what we are mindful of,” he said. Sypko said the park was adding more covered and indoor experiences. Gary Ng, a senior economist with Natixis Corporate and Investment Bank, said Hongkongers’ strong desire to travel during holidays was ingrained, but the impact of their departures could be cushioned by more inbound tourists. He also suggested that Disneyland could do more to attract local visitors. “Local visitors are important to the theme park, and more perks should be offered to retain them,” he added. To enhance its offerings, the resort will upgrade facilities, including refurbishing existing hotels such as the Hong Kong Disneyland Hotel. The park will also roll out new attractions in the coming months. From early May, a robotic version of Olaf – the snowman created by Elsa in Walt Disney Animation Studios’ Frozen – will be introduced. Developed by Walt Disney Imagineering Research and Development, the next-generation robot uses reinforcement learning and can interact with guests. Another highlight will be new Pixar and Marvel-themed areas, which the park described as “major expansion projects”. A separate Pixar-themed experience will coincide with the release of Disney and Pixar’s Toy Story 5 and Pixar’s 40th anniversary. Meanwhile, a new Marvel-themed experience, featuring an all-new attraction, immersive entertainment and themed merchandise, is under construction in the park’s Tomorrowland area.

Hong Kong Disneyland profit drops 36% to HK$536 million as costs rise

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}But managing director stresses profit still second-highest in park’s 20-year history

But managing director stresses profit still second-highest in park’s 20-year history