Did you catch all the news from Disney’s Q3 2022 earnings call and latest earnings report?
©Disney
The report and call usually reveals a lot of details about Disney’s current financial standing. This quarter’s call provided new subscriber numbers for Disney+, and some important information about the theme parks. In case you missed it, we’re breaking down some of the most important news from the call!
Overall Financial Results
Revenues for The Walt Disney Company for the quarter grew 26%. The diluted earnings per share (EPS) for the quarter increased to $0.77 from $0.50 in the prior-year quarter.
©Disney | Walt Disney Company Headquarters
CEO Bob Chapek said “We had an excellent quarter, with our world-class creative and business teams powering outstanding performance at our domestic theme parks, big increases in live-sports viewership, and significant subscriber growth at our streaming services.”
Walt Disney Company Headquarters ©LA Times
He went on to say, “We continue to transform entertainment as we near our second century, with compelling new storytelling across our many platforms and unique immersive physical experiences that exceed guest expectations, all of which are reflected in our strong operating results this quarter.”
Here’s a closer look at the numbers:
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Now, let’s move on to Disney+ news!
Disney+ Subscribers
Disney revealed during the call Disney+ now has 152.1 million subscribers. At this same time last year, Disney+ had 116 million subscribers, which means there was a 31% increase in since July 3rd, 2021. 14.4 million subscribers were added in the just the second quarter of 2022.
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This total number was also higher than the 147.76 million than analysts had predicted.
Click here to see the new subscriber numbers for Hulu and ESPN+ as well
Disney+ Ads & Price Increase
We’ve known for a while now that ads would be coming to Disney+, and we finally got some more details. The ad-supported version of Disney+ will be called “Disney+ Basic,” and the ad-free version will be “Disney+ Premium.” Disney+ Basic (with ads) will be available on December 8th in the U.S. for $7.99/month.
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With this new ad-supported tier of the streaming service, the ad-free version of Disney+ (Disney+ Premium) will be getting a price increase. It will go up in price 38% to $10.99/month.
Click here to read more about these changes to Disney+
Disney Parks
Disney Parks, Experiences, and Products revenues for Q3 increased to $7.4 billion. It was $4.3 billion in the prior-year quarter. Segment operating income increased from $1.8 billion to $2.2 billion compared to $0.4 billion in the prior-year quarter.
Cinderella Castle
Higher operating results for the quarter reflected increases at domestic parks and experiences, and operating income growth at the domestic parks and experiences was due to higher volumes and increased guest spending. Higher volumes were due to increases in attendance, occupied room nights, and cruise ship sailings.
EPCOT
Guest spending growth was due to an increase in average per capita ticket revenue and higher average daily hotel room rates. This increase in average per capita ticket revenue was because of Genie+ and Lightning Lane being introduced in the first quarter of the current fiscal year and a reduced impact from promotions at Walt Disney World Resort. Per capita spending at domestic parks also increased 10% vs. Q3 of 2021. And, occupancy is at 90% for hotels at domestic parks.
Higher costs were mostly due to volume growth, cost inflation, and new guest offerings.
Guardians of the Galaxy: Cosmic Rewind
As for International parks, they are still recovering from the pandemic, as is Disney Cruise Line, according to the earnings call. But, Disneyland Paris opening its own Avengers Campus seems to have helped, as guests at the park spent over 30% more compared to 2019.
©Disney
That’s the big news from the Q3 earnings call! Are you a current Disney+ subscriber? If you’re looking for some unique movies to watch on the service, here’s a list of movies and shows we bet you forgot about! If you can’t get to the theme parks soon, you can also watch a lot of shows and movies that will make you feel like you’re in the parks!
If you are headed to Disney World soon, be sure to read up on all the cancellation policies you might need to be familiar with! Air travel, in particular, is a little iffy now with delays and cancellations, so be sure you know how to handle those situations ahead of time!
10 Not-So-Magical Truths in Disney World
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What news from Disney’s earnings call surprised you the most? Let us know in the comments!
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Yeah, disney is doing so well by squeezing out every last penny from people that visit. Bob’s approach to people visiting the parks is sickening. I get supply and demand, but his aggressive money seeking is a turn off from wanting to go. That and also the fact that all the perks of going to Disney have almost all disappeared. Only a matter of time before it’s all gone. Nothing will be a perk from disney saying thank you for choosing us for your vacation. Since they are raising prices they SHOULD NOT be taking away the free things.
So far all this customer gouging hasn’t hurt attendance but let’s see what happens. I used to be a regular visitor to WDW in Florida and would always bring family members despite the distance (Canadian west coast) but this nest visit in Sept. will be my last. I don’t even look forward to it because the whole Genie thing and getting up at 7 am to scramble for Lightening Lanes is already stressing me out and I’m not even there yet! I use to love trying all the Disney restaurants but this time, despite logging on 60 days in advance, I got none of my desired dining reservations as the only things free 10 min. into the process were 8.30 pm reservations – WAY too late when you have to be up at 7 am.
I’m going only because of the Anniversary and nostalgic reasons but no one else in my family wants to go anymore. The prices are simply too high for what you get (esp. when paying in Canadian dollars) and except for a few new rides it’s basically the same old, same old. Most of your time is spent standing in a queue in humid, hot temperatures to experience a 3 minute ride that you’ve done many times before. There are so many interesting places in the world to see where the experience isn’t wholly manufactured , and you’re not part of a horde and that’s where my vacation dollars are now going.
So far all this customer gouging hasn’t hurt attendance but let’s see what happens. I used to be a regular visitor to WDW in Florida and would always bring family members despite the distance (Canadian west coast) but this nest visit in Sept. will be my last. I don’t even look forward to it because the whole Genie thing and getting up at 7 am to scramble for Lightening Lanes is already stressing me out and I’m not even there yet! I use to love trying all the Disney restaurants but this time, despite logging on 60 days in advance, I got none of my desired dining reservations as the only things free 10 min. into the process were 8.30 pm reservations – WAY too late when you have to be up at 7 am.
I’m going only because of the Anniversary and nostalgic reasons but no one else in my family wants to go anymore. The prices are simply too high for what you get (esp. when paying in Canadian dollars) and except for a few new rides it’s basically the same old, same old. Most of your time is spent standing in a queue in humid, hot temperatures to experience a 3 minute ride that you’ve done many times before. There are so many interesting places in the world to see where the experience isn’t wholly manufactured , and you’re not part of a horde and that’s where my vacation dollars are now going.
Now he’s expected to surpass those earnings for next quarter which means higher prices and lower value for their most loyal customers.