Disney to invest $60 billion in parks and cruises

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Written on Sep 19, 2023

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Disney nearly doubled its planned investment in parks and cruises on Tuesday.
More colour on the announcement is expected at its investor day.
Shares of Walt Disney Co are down nearly 30% versus their year-to-date high.

Walt Disney Co (NYSE: DIS) is in focus this morning after revealing plans of massively increasing investment in parks and cruises.

How much will Disney invest in parks and cruises

The entertainment conglomerate now plans on spending about $60 billion on that business over the next ten years, as per its filing with the Securities & Exchange Commission on Tuesday.

[Disney] is developing plans to accelerate investment in expanding and enhancing domestic and international parks and cruise line capacity, [and] prioritising projects anticipate to generate strong returns.

Parks and cruises brought in $8.3 billion in revenue for the Walt Disney Co in its third financial quarter – up 13% on a year-over-year basis as Invezz reported here.

Its shares are currently down nearly 30% versus its year-to-date high in early February.

Further updates are expected at Disney’s investor day

Before today’s announcement, Disney had plans of investing roughly $30 billion only in its parks and cruises business.

The mass media company will offer more colour on its increased investment on that segment at its investor day scheduled for later on Tuesday. Its SEC filing also reads:

We believe [Disney’s] financial condition is strong [with] adequate resources to fund ongoing operating requirements, contractual obligations, upcoming debt maturities and future capital expenditures.

The news arrives more than a month after Disney partnered with Penn Entertainment Inc to relaunch its Barstool Sportsbook as ESPN Bet (find out more). Wall Street currently has a consensus “overweight” rating on its stock.