By Dawn Chmielewski
(Reuters) -Walt Disney said on Tuesday it would nearly double its capital expenditure for the parks business to about $60 billion over the next ten years.
The parks business has become a reliable profit engine for the company and has helped cushion losses in the Disney+ streaming business, which is expected to become profitable only next year.
Disney notes that its parks, experiences and products segment has expanded at a combined annual growth rate of 6% since fiscal 2017, and generated $32.3 billion in operating income over the last 12 months, according to a regulatory filing.
After the outbreak of COVID-19 in 2020 disrupted its business, Disney has accelerated its parks investment. It says it has more than 1,000 acres of land for future development globally, as it seeks to appeal to some 700 million consumers who are Disney fans but have yet to visit one of its theme parks.
Disney’s disclosure follows a slowdown at Walt Disney World in Orlando, Florida, but a surge in attendance at its parks around the world.
(Reporting by Samrhitha Arunasalam in Bengaluru and Dawn Chmielewski in Los Angeles; Editing by Shailesh Kuber)
