Walt Disney Company Q1 Earnings Show Banner Start to Year For Theme Parks
After years of Disney profits being impacted by the pandemic, the Walt Disney Company finally looks as if its bouncing back with a Q1 2022 earnings report that sets a positive tone for 2022. Overall, profits are up including in the theme park sector as interest in travel and tourism returns after nearly two years of travel restrictions and quarantine.
Here’s a quick overview of how Wall Street is responding to the news:
$DIS smashes FQ1 earnings.
FQ1 EPS. $1.06, EST. $0.57
FQ1 Revenue. $21.82B, EST. $20.85B
FQ1 #Disney+ Subscribers. 129.8m, EST. 125.1m
FQ1 Park Revenue. $7.2b, EST $6.13bThe highest park revenue since the pandemic began, showing consumers are flocking back to theme parks.
— Josh Gilbert (@JoshG_eToro) February 9, 2022
As you can see from the tweet above theme park revenue has surpassed the $6.13 billion estimated by the the company, bringing in $7.2 billion.
“We’ve had a very strong start to the fiscal year, with a significant rise in earnings per share, record revenue and operating income at our domestic parks and resorts, the launch of a new franchise with Encanto, and a significant increase in total subscriptions across our streaming portfolio to 196.4 million, including 11.8 million Disney+ subscribers added in the first quarter,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “This marks the final year of The Walt Disney Company’s first century, and performance like this coupled with our unmatched collection of assets and platforms, creative capabilities, and unique place in the culture give me great confidence we will continue to define entertainment for the next 100 years.”
Image Credit: Disneyland Paris
Disney Parks, Experiences and Products for the quarter increased to $7.2 billion compared to $3.6 billion in the prior year quarter. Segment operating results increased by $2.6 billion to income of $2.5 billion compared to a loss of $0.1 billion in the prior year quarter. This is huge and Disney is leading with the news that theme park revenue has NOW exceeded pre-pandemic levels!
Disney attributes income growth in relation to theme parks to higher volumes and increased guest spending which is partially offset by higher costs. By higher volumes we mean an increase in attendance, cruise ship occupancy and more! An increase in guest spending is being attributed to an increase in ticket prices, average daily hotel room rates and an increase in food, beverage and merchandise spending.
The Earnings Report attributes an increase in ticket revenue due to a combination of attendance and the introductions of a PAID Genie+, Lightning Lane service. Chapek said during the Q1 earnings call is that the company estimates that 1/3 of all domestic theme park visitors are paying for Disney Genie+ or Lightning Lane during their visits. He also advised that hotel occupancy is back up at 90% at Walt Disney World and 100% at Disneyland Resort.
This offsets higher operating costs attributed to volume growth and higher market spending. For instance, domestic parks and resorts were open for the entire currently quarter whereas last year Disneyland was still closed for Q1.
There was also an increased operating income at Disney’s international parks and resorts due to growth at Disneyland Paris and Hong Kong Disneyland Resort. Results At Disneyland Paris, an increase in attendance and occupied room helped offset the higher operating costs. Growth at Hong Kong Disneyland Resorts was driven by an increase in attendance.
Disneyland Paris was open for the entire Q1 quarter as opposed to only being open 26 days during the prior-year quarter. Hong Kong Disneyland Resort was open for 68 days in Q1 as opposed to only 42 days last year. Shanghai Disney Resort and Tokyo Disney Resort were open for the entire quarter both this year and last.
Photo: Kin Cheung/AP/Shutterstock
Above is a quick look at the financials for the the theme parks sector as outlined in Disney’s Quarterly report.
Here’s a look more specifically at the parks.
We expect more information to be released from this year’s Q1 Earnings Report. Readers are encouraged to keep following along with us for further Disney-related news and updates.
Didn’t make it to Disney in 2021!? Well we’ve got some fantastic news- Disney Packages are currently available to book through the end of 2022! That gives you plenty of time to plan that magical getaway and I’m here to help.
With new policies and procedures in place during the year ahead, there’s never been a better time to work with an Authorized Disney Vacation Planner who can help you navigate through Disney World’s new way of doing things! I’ll be on hand to assist with everything from finding that perfect package and getting the best deals to organizing park passes, Disney Genie+ and dining reservations. Best of all- my services are ABSOLUTELY FREE!
Just fill out my form HERE to get your FREE, no-obligation quote. Alternatively, feel free to reach out at mroden@mickeytravels.com or follow along on Facebook
