The Walt Disney Company Earnings Are In For Its Second Fiscal Quarter
The Walt Disney Company today reported earnings for its second fiscal quarter that ended on April 2, 2022.
Here are some key notes to get started:
- Disney+ added 7.9 million subscribers last year versus the expected 5 million.
- Disney Parks, Experiences, and Products revenues for the quarter increased to $6.7 billion compared to $3.2 billion in the prior years quarter.
- Bob Chapek said the Star Wars Gakctic Starcruiser reviews have been outstanding and they expect 100% utilization through the end of September.
“Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services—with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million—once again proved that we are in a league of our own,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected, and magical Disney universe for families and fans around the world.” The following table summarizes the second quarter results for fiscal 2020 and 2021:
Since early 2020, the world has been, and continues to be, impacted by the novel coronavirus (COVID-19) and its variants. COVID-19 and measures to prevent its spread have impacted our segments in a number of ways, most significantly at the Disney Parks, Experiences and Products segment where our theme parks and resorts were closed and cruise ship sailings and guided tours were suspended. These operations resumed at various points since May 2020, initially at reduced operating capacities as a result of COVID-19 restrictions. In fiscal 2020 and 2021, we delayed, or in some cases, shortened or canceled 2 theatrical releases.
The following table summarizes the second quarter segment revenue and segment operating income (loss) for fiscal 2022 and 2021 (in millions):
Disney Parks, Experiences and Products
Disney Parks, Experiences and Products revenues for the quarter increased to $6.7 billion compared to $3.2 billion in the prior-year quarter. Segment operating results increased by $2.2 billion to income of $1.8 billion compared to a loss of $0.4 billion in the prior-year quarter. Higher operating results for the quarter reflected increases at our domestic parks and experiences businesses and, to a lesser extent, at our International parks and resorts and merchandise licensing businesses. Operating income growth at our domestic parks and experiences was due to higher volumes and increased guest spending, partially offset by higher costs. Higher volumes were due to increases in attendance, occupied room nights and cruise ship sailings. Cruise ships operated at reduced capacities in the current quarter while sailings were suspended in the prior-year quarter. Guest spending growth was due to an increase in average per capita ticket revenue, higher average daily hotel room rates and an increase in food, beverage and merchandise spending. The increase in average per capita ticket revenue was due to a favorable attendance mix and the introduction of Genie+ and Lightning Lane in the first quarter of the current fiscal year.
The following table presents supplemental revenue and operating income (loss) detail for the Disney Parks, Experiences and Products segment:
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