Disney doubles spending for one of its key divisions

Article Excerpt

Disney will make a huge investment in its most lucrative business. The parks, experiences and products segment accounts for a third of the company’s revenue; it contributes a whopping 80% of its operating profits. WALT DISNEY CO., $84.68, is a buy. The company (New York symbol DIS; TSINetwork Rating: Above Average) (Shares o/s: 1.8 billion; Market cap: $152.4 billion; No dividend) now plans to spend $60 billion over the next 10 years in a major expansion of its theme parks, products and cruise line business. That’s nearly double its prior 10-year spending. Disney has more than 1,000 acres of land available for development, including at its theme parks worldwide, and cruise ship ports in the U.S., Asia, and Australia. Meanwhile, as previously announced, over the next two years, Disney will nearly double the worldwide capacity of its cruise line, adding two ships in fiscal year 2025 and another in 2026. This expansion is aimed at adding new markets, including a new home port in Singapore in…