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According to a filing with the SEC, Disney has provided an update to its planned Capital Expenditures in its theme park business. In the filing, Disney says that it plans to “nearly double” Capital Expenditures to roughly $60 billion over the next ten years:
The Walt Disney Company is providing the following update regarding its plans for capital expenditures at its Disney Parks, Experiences and Products (“DPEP”) segment. The Company is developing plans to accelerate and expand investment in its DPEP segment, to nearly double, as compared to the previous approximately 10-year period, consolidated capital expenditures for the segment over the course of an approximately 10-year period to approximately $60 billion in aggregate, including by investing in expanding and enhancing domestic and international parks and cruise line capacity, prioritizing projects anticipated to generate strong returns, consistent with the Company’s continuing approach to allocate capital in a disciplined and balanced manner.
We believe that the Company’s financial condition is strong and that its cash balances, other liquid assets, operating cash flows, access to capital markets and borrowing capacity under current bank facilities, taken together, provide adequate resources to fund ongoing operating requirements, contractual obligations, upcoming debt maturities as well as future capital expenditures related to the expansion of existing businesses and development of new projects.
In an email to the New York Times, Disney CEO Bob Iger said that the company plans on “turbocharging” he growth trajectory in its theme park line of business, which includes cruise ships and merchandise:
There are far fewer limits to our parks business than people think.
The growth trajectory is very compelling if we do nothing beyond what we have already committed. By dramatically increasing our investment — building big, being ambitious, maintaining quality and high standards and using our most popular I.P. — it will be turbocharged.
Disney offered the following graph in supplemental information from the SEC filing, showing a dip in spending during COVID-19, but an uptick in spending following the recovery.
In terms of what IP could be leveraged in the parks, Disney Parks Chairman Josh D’Amaro didn’t offer anything concrete to the Times beyond what was already announced, but he did offer a hint of what could be to come:
Imagine bringing Wakanda to life.
In terms of bringing the latest Disney-Marvel-Pixar intellectual property to the parks, we haven’t come close to scratching the surface. And we have learned that incorporating Disney I.P. increases the return on investment significantly.
As always, keep checking back with us here at BlogMickey.com as we continue to bring you the latest news, photos, and info from around the Disney Parks!