The Walt Disney Company reported to its investors today about its latest earnings, as well as earnings for the past year.
The numbers reported today confirmed the explosion of growth in Disney’s Parks revenue this year, and the continuing challenges the company is having in making its streaming service — Disney+ — profitable.
Parks Revenues Continue to Beat 2021 By a Mile
Disney reported revenue in its Disney Parks, Experiences and Products division at $7.4 billion for the quarter — an increase of 26% over the same period in 2021.
Disney CEO Bob Chapek said that demand at Disney Parks continues to exceed capacity “on many days.” He touted the investments made to bring new attractions to Disney’s U.S. parks — such as the new Guardians of the Galaxy: Cosmic Rewind coaster at EPCOT — for driving the increased demand.
Chapek also thanked the Cast Members who “went above and beyond” during Hurricane Ian, which prompted closures and operational changes at Disney World in September. “I am so proud of how our team came together to support our guests, our neighbors, and each other,” Chapek said. Disney CFO McCarthy noted that the hurricane resulted in losses of $65 million.
Chapek noted that guests still want to celebrate at Disney Parks, evidenced by the sell-outs of special ticketed events like the Oogie Boogie Bash and Mickey’s Not-So-Scary Halloween Party. Chapek also stated that more than half of the dates for Mickey’s Very Merry Christmas Party have already sold out.
McCarthy said that per capita spending in Disney’s domestic parks remains way open over pre-pandemic levels. Guests are spending 40% more in the parks than they did in 2019, which she attributed to the continued popularity of premium offerings such as Disney Genie+ and Individual Lightning Lanes.
Another thing up in the parks is international travelers — especially at Disney World. McCarthy said that international visitors in the fourth quarter were “roughly in line with pre-pandemic levels.”
Overall, Disney’s Numbers Show Revenue Growth
Disney is reporting revenue of $21.3 billion for the quarter, which is slightly down from the Q3 numbers, but up $2.8 billion from this period last year.
“2022 was an important year of recovery coming out of the pandemic,” Chapek said. McCarthy told investors that further growth is expected during Fiscal Year 2023.
“We currently expect the total company income in Fiscal Year 2023 and segment operating income to both grow at a high single percentage rate vs 2022,” McCarthy said.
Disney’s Streaming Business Continues to Record Losses
Chapek and McCarthy also spoke on the streaming business and reported that Disney+ added more than 12 million subscribers internationally, though there are still financial losses on the streaming side.
Shares of many media companies that have streaming services have been down for most of the year — including Disney’s stock, which is down 35% in 2022. The Wall Street Journal reports that investors are growing weary of waiting to see profits from streaming services.
“We expect Disney+ to achieve profitability in 2024, with losses starting to decline in the first quarter of 2023,” Chapek said. McCarthy noted that the launch of the ad-supported tier on Disney+ will likely not have impacts on its streaming divisions’ profitability until later in 2023.
Check out these posts for more info about developments in the Walt Disney Company:
- Disney CEO Bob Chapek Reveals the “Secret Sauce” to Making Magical Memories
- “We Dramatically Underestimated the Hungry Beast” — See Disney CEO Bob Chapek’s Comments on Disney+
- How Disney CEO Bob Chapek Is “Aggressively” Pursuing Sports Betting
- Disney CEO Bob Chapek Comments on Price Increases, Annual Passes, and Park Passes
Stay tuned to DFB for the latest Disney news!