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Disney signals huge investment in segment including cruise

Disney Adventure will become the seventh DCL ship and the first of the fleet to sail from Singapore
Walt Disney Co. plans to nearly double the investment in its Parks, Experiences and Products segment — which includes cruise — to approximately $60b over the next decade.

This will entail expanding and enhancing domestic and international parks and cruise line capacity, prioritizing projects anticipated to generate strong returns, consistent with the approach of allocating capital in a disciplined and balanced manner, the company said in a financial update Tuesday.

Revenue in the Parks, Experiences and Products segment has increased at a compound annual growth rate of 6% since 2017, and is expected to reach $32.3b in 2023, while operating income during the same period has risen at a CAGR of 8% and is projected at $9.2b in 2023.

Disney Cruise Line strength

Disney Cruise Line has fourth quarter booked occupancy of 98% and claims double the yield of the rest of the cruise industry based on 2023 metrics and a double-digit return on investment.

Disney Treasure is due to enter service in December 2024, following the mid-year opening of new private Bahamas destination Lookout Cay at Lighthouse Point.. A third 144,000gt Wish-class ship is coming in 2025, aong with the 2008gt Disney Adventure (ex Global Dream).

'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,' the Walt Disney Co. presentation said.