In its latest filing with the SEC, Disney says that it currently plans on increasing capital expenditures in FY 2024 by $1 billion over 2023 figures. Disney says most of that extra capital will be spent in the Experiences division (formerly Parks, Experiences, and Products), with cruise ship fleet expansion being called out specifically. In total, Disney’s latest forecast is for $6 billion in capital expenditures in 2024.
Before we get too excited about the possibility of anything being turbocharged, let’s take a look back at previous spending, and, more importantly, previous forecasts of spending. We’ll start by saying this: the 2024 estimates will probably be higher than the actual spend, but they appear to be more rooted in reality than in years past.
At the start of FY 2023, Disney said that they planned on spending a whopping $6.7 billion in capital expenditures for the year. The actual spend was $4.9 billion – barely more than what was spent in FY 2022 and a wild miss on estimates. At the start of FY 2022, Disney said that they planned on spending $6.1 billion for the year. The actual spend for FY 2022 was $4.9 billion.
The $1 billion increase, while not nearly as ambitious as the $1.8 billion estimate from last year, is more reminiscent of the 2019 estimates. At the start of FY 2019, Disney estimated that it would spend $1 billion more than it did in 2018. In reality, the delta was closer to $400 million.
At some point, we’re going to have to see the “turbocharge” plan in action, but it probably won’t be this year. In fact, while Disney has previously committed to $60 billion across its global Experiences division over the next decade, and $17 billion at Disney World alone in the same timeframe, we don’t expect that spending to kick off in earnest until closer to 2030. As we all know, if the spending begins closer to 2030, projects probably won’t open for another 3-6 years after that.
As we wrap up, it’s important to note that these capital expenditure estimates are for the whole company. In 2023, Disney spent just over $3 billion of the $4.9 billion, or about 60% of its total capex, on the Experiences division. The Entertainment division accounted for $1 billion, Sports was $15 million, and corporate used nearly $900 million.
Also important to note is that the $1 billion planned increase in spend is “primarily due to higher spending at Experiences, [and] in part due to continued investment in our Disney Cruise Line business”, according to the filing. Finally, the $1 billion estimate has not changed from the November 2023 filing where the company first disclosed the spending. Occasionally, we’ll see capex estimates lowered throughout the fiscal year, but it looks like spending is on pace. In the first quarter of FY 2024, Disney spent $1.3 billion in total capex, with $815 attributable to the Experiences division.
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!