by Donald Wood
Last updated: 5:00 PM ET, Wed February 10, 2016
Photo courtesy of Walt Disney World Resort
On Tuesday, the Walt Disney Company announced its record earnings for first quarter of the 2016 fiscal year, thanks in part to the success of the "Star Wars" brand and the company's amusement parks and resorts.
According to Disney's official website, revenue for the parks and resorts portion of the company increased to $4.3 billion for the quarter, a nine percent improvement. Operating income also improved, jumping 22 percent to $981 million.
Overall, Disney's parks and resorts reported an increase in domestic business, while also reporting a slight decrease for its international brands. In the United States, the company is crediting higher average ticket prices and higher average hotel room rates as part of the reason for the jump in guest spending, but there was also an increase in labor and new attraction costs.
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On the downside, a drop in attendance at Disneyland Paris, higher operating costs and the work needed to open Shanghai Disney Resort as scheduled have all contributed to the reported lower international operating income.
Disney also referenced its cruise ship business, which the company says had a higher operating income, but also incurred major expenses due to the Disney Dream being in dry-dock during the quarter.
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Walt Disney Company Chairman and CEO Robert A. Iger released a statement
"Driven by the phenomenal success of Star Wars, we delivered the highest quarterly earnings in the history of our Company, marking our 10th consecutive quarter of double-digit EPS growth. We're very pleased with our results, which continue to validate our strategic focus and investments in brands and franchises to drive long-term growth across the entire Company."
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