The Walt Disney Company says its new $5.5 billion theme park in Shanghai will come close to breaking even by the end of its first full year of operation in 2017.
Disney CEO Bob Iger said the park took in 4 million guests during its first four months of operation. “Some of you may infer from this early performance that we could achieve 10 million in attendance in the park’s first year, a number we would be thrilled with,” Iger added, while emphasizing the company wasn’t providing formal guidance. “It’s very clear our guests are thoroughly enjoying it. They’re enthusiastically embracing our stories and characters.”
On Thursday, Disney shares fell after it reported quarterly earnings that missed expectations partly due to troubles in its media network segments, the company’s biggest source of sales. The stock had already been under pressure after Nielsen reaffirmed data that ESPN lost 621,000 subscribers in a month.
But Iger said the company is going through a transition period and projected earnings growth for the next two years, easing investors concerns over the quarterly drop. The company’s stock rose 2.7 percent to $97.25 after hours. Iger said Disney plans to bring premium content to consumers in new, digital ways. “We want our investors to know that fiscal 2017 is going to be an anomaly,” Iger said.