To clarify, Disney did not report a "20% increase in per guest spending". In the most recently completed fiscal quarter, Disney reported a 4% increase in domestic Per Capita Guest Spending, the
lowest increase since 2010.
Disney did report a 20% increase in operating income which was largely due to a 7% gain in domestic theme park attendance. Disney's Parks & Resorts revenue increased a less spectacular 8.7%. Operating margins improved since, for example. whether there are 50,000 or 55,000 people in the theme parks, the incremental costs of the extra 5,000 are lower.
During every quarterly financial review in recent years, investors ask Iger and Rasulo for metrics showing that MyMagic+ is financially successful. Iger's most recent response is typical:
We did see in the quarter a positive impact to the bottom line from MyMagic+, just the beginnings of it. We will continue to see more of that. But we do not have data that we can share with you right now about specific guest spending.
It's premature to declare MyMagic+ a financial success or failure, since even Disney's CEO is stating that they are seeing "just the beginnings of it".
Some might argue that attendance is up as a result of MyMagic+ but it's difficult to justify that. Certainly if the 7% gain reported at Disney's domestic theme parks during the most recently completed fiscal quarter were attributable to MyMagic+, Iger would have said that in his remarks.
The reality is that attendance is up at most places right now as the economy is viewed as being on an upswing. Universal's attendance and operating income are up more than Disney's as a result of their investment in the considerably less expensive Diagon Alley. Which company made the smarter investment at its Orlando theme parks?
Again, it's too early to declare MyMagic+ a financial success or failure.