volume after reopening, and the collection of related business
interruption insurance proceeds in the current year. Operating income
growth at Disney Cruise Line was due to increased passenger cruise days
driven by the Disney Fantasy and the Disney Dream,
partially offset by the related operating costs.
Operating income growth at Hong Kong Disneyland Resort was primarily due
to guest spending, which was driven by higher average ticket prices and
daily hotel room rates, and increased attendance, partially offset by
higher costs related to resort expansion. At Disneyland Paris, increased
guest spending, driven by higher daily hotel room rates, and higher
attendance were more than offset by labor cost inflation and lower hotel
occupancy.
For the quarter, operating income growth reflected increases at Disney
Cruise Line, Hong Kong Disneyland Resort, our new Aulani resort and
hotel in Hawaii, and Disneyland Paris.
Higher operating income at Disney Cruise Line was driven by increased
passenger cruise days driven by the Disney Fantasy, partially
offset by the related operating costs. The increases at both Hong Kong
Disneyland Resort and Disneyland Paris were driven by higher attendance.
Improved results at Aulani reflected a full quarter of operations in the
current year compared to the prior-year quarter which included
pre-opening costs.
Results for the quarter at our domestic parks and resorts were
comparable to the prior-year quarter as increased guest spending at
Disneyland Resort and Walt Disney World Resort and increased attendance
at Disneyland Resort were largely offset by higher operating costs. The
guest spending increase reflected higher average ticket prices, daily
hotel room rates and food and beverage spending. Higher operating costs
were driven by resort expansion and new guest offerings, including
investments in supporting systems infrastructure, labor cost inflation,
and higher employee benefits costs.
Studio Entertainment
Studio Entertainment revenues for the year decreased 8% to $5.8 billion
and segment operating income increased 17% to $722 million. For the
quarter, revenues decreased 4% to $1.4 billion and segment operating
income decreased 32% to $80 million.
The revenue decline for the year was driven by fewer theatrical releases
in the current year and lower home entertainment sales volume. Higher
operating income for the year was driven by increases in domestic
theatrical and worldwide television distribution, partially offset by
higher film cost write-downs.
Domestic theatrical operating income growth reflected the strong
performance of Marvel's The Avengers in the current year,
partially offset by marketing costs for Frankenweenie, which was
released after the fiscal year-end. The revenue decline from fewer
theatrical releases was largely offset by a decrease in the related
distribution and marketing costs and production cost amortization.
In worldwide television distribution, lower revenues from the domestic
markets were largely offset by higher international syndication
revenues. The increase in operating income was due to a lower average
production cost amortization rate on current-year titles.
For the quarter, lower segment operating income was driven by a decrease
in worldwide theatrical results and higher film cost write-downs,
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News Column
Disney Reports Q4, Full-year Earnings for FY2012
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