Improved results at Disney Cruise Line, demand remains strong

Walt Disney Co. reported non-GAAP earnings per share of $1.39, up from $1.03 a year ago, on revenues of $23.2b, up from $22.3b. Both were above Wall Street expectations.

'Strong' cruise demand but higher costs ahead

The company said it also continues to see 'strong demand' at Disney Cruise Line, though fiscal Q4 results will reflect pre-launch expenses for Disney Adventure and Disney Treasure.

Disney Treasure is scheduled to sail its maiden voyage from Port Canaveral Dec. 21. The second ship in the 144,000gt Wish series was floated out at Meyer Werft on Saturday.

The 208,000gt Disney Adventure (originally World Dream) is being transformed at the former MV Werften in Wismar for its planned introduction in Singapore during 2025, date to be announced.

'Very positive' on cruise investments

Walt Disney Co. CFO Hugh Johnston noted cruise ship investments 'tend to pay back very quickly. So we certainly feel positive about those investments.'

Asked about investments in parks and cruise during Q3 earnings call, he added: 'We wouldn’t be making capital investments in an accelerated way if we didn’t expect to accelerate growth out of those businesses and that’s true of the cruise ships as well.'