Hong Kong Disneyland reports record revenue growth of HK$5.7 billion

693
World of Frozen

25th June 2024 – (Hong Kong) Hong Kong Disneyland Resort announced its latest annual financial results for the fiscal year 2023, showcasing significant improvements in revenue and profitability. The theme park recorded a remarkable 156% increase in revenue, reaching HK$5.7 billion. Additionally, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) surged by 207% to HK$924 million, while the net losses narrowed to HK$356 million, marking an impressive 83% improvement. Notably, the total attendance reached 6.4 million, with a remarkable 87% growth in local visitors, setting a new record.

When considering the calendar year, Hong Kong Disneyland achieved profitability in 2023. In the first quarter of the 2024 calendar year, the park achieved its best quarterly performance to date in terms of revenue, EBITDA, and net profit. The outstanding results were primarily attributed to the success of the “World of Frozen” attraction, which has been driving positive performance since its opening in the summer of 2023.

Hong Kong Disneyland’s financial success can be attributed to its ability to rebound strongly after the pandemic, outperforming market expectations. The park’s profitability prior to the opening of the “World of Frozen” attraction demonstrates its resilience and effective management strategies. In the first quarter of 2024, the park achieved historic highs in quarterly revenue, EBITDA, and net profit, largely stimulated by the popularity of the “World of Frozen” attraction.

The increased attendance and revenue growth have also positively impacted per capita spending, which witnessed a 54% year-on-year increase. This growth further contributes to the park’s overall financial performance.

According to the agreement between The Walt Disney Company and the Hong Kong government, Disney retains the right to collect management fees and royalties. The basic management fee is calculated as 6.5% of the EBITDA before interest, taxes, depreciation, and amortization, with an additional variable management fee ranging from 0% to 8%. Based on the latest financial results, the government is expected to receive at least HKD 60 million in dividends, in addition to a potential maximum of HKD 79.32 million.