Disney Parks and Experiences Segment Sees 7 Percent Growth in Latest Quarter

12 days ago in "The Walt Disney Company"

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Walt Disney Company headquarters in Burbank, California

Posted: Tuesday May 7, 2024 7:30am ET by WDWMAGIC Staff

Disney has today reported an increase in revenue to $22.1 billion for the second quarter of fiscal year 2024, up from $21.8 billion in the same period last year.

The Experiences business proved to be a strong growth driver, with revenues climbing 10% and operating income growing 12%. While Q3 is expected to see comparable results year-over-year, the full year is anticipated to bring robust growth in this segment. Results were higher at Walt Disney World compared to prior-year quarter due to increased guest spending from higher average ticket prices and cost saving initiatives. The domestic Parks and Experience segment saw 7% growth.

Notably, Disney+ and Hulu reported a combined profit in the quarter for the first time ever. Disney+ subscribers increased by more than 6 million in the second quarter to 117.6 million global customers. Total Hulu subscribers grew 1% to 50.2 million. ESPN+ subscribers dropped by 2% to 24.8 million.

“Our strong performance in Q2, with adjusted EPS(1) up 30% compared to the prior year, demonstrates we are delivering on our strategic priorities and building for the future,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “Our results were driven in large part by our Experiences segment as well as our streaming business. Importantly, entertainment streaming was profitable for the quarter, and we remain on track to achieve profitability in our combined streaming businesses in Q4.

“Looking at our company as a whole, it’s clear that the turnaround and growth initiatives we set in motion last year have continued to yield positive results. We have a number of highly anticipated theatrical releases arriving over the next few months; our television shows are resonating with audiences and critics alike; ESPN continues to break ratings records as we further its evolution into the preeminent digital sports platform; and we are turbocharging growth in our Experiences business with a number of near- and long-term strategic investments.”

View the full Q2 Results.

Domestic Parks and Experiences

The increase in operating income at the domestic parks and experiences was due to higher results at Walt Disney World Resort and Disney Cruise Line, partially offset by lower results at Disneyland Resort.

At Walt Disney World Resort, higher results in the current quarter compared to the prior-year quarter were due to:

Increased guest spending attributable to higher average ticket prices
Higher costs due to inflation, partially offset by lower depreciation and cost saving initiatives

Growth at Disney Cruise Line was due to an increase in average ticket prices, partially offset by higher costs

The decrease in operating results at Disneyland Resort was due to:

Higher costs driven by inflation
An increase in guest spending attributable to higher average ticket prices and daily hotel room rates
Higher volumes due to attendance growth, partially offset by lower occupied room nights

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Sirwalterraleigh7 days ago

He won’t like them anymore after he drops $10 on the day a month after begging everyone from Wall Street to Hollywood to vote for he and and his cronies on the board

MarvelCharacterNerd7 days ago

Or maybe here given all the speculation about "oooh why would they do an early morning call? What could it mean???" Maybe it just meant Bob likes mornings. lol

WoundedDreamer7 days ago

This a masterclass in misaligned expectations. I remember there was an early Disney earnings call when Sheryl Sandberg was on the board of directors. Her husband suddenly and tragically passed away, so Iger rescheduled the call early in the day so he could attend the funeral. A completely reasonable thing to do under the circumstances. This appears to have been nothing like that. No family or personal reason to reschedule the call was cited. So, the markets did what markets do. They assumed there was good news. Even without the bad forward-looking estimates, this wasn't a blockbuster quarter. It was fine, but not great. Streaming is either losing less money or making a profit depending on how you account for it. But overall, the streaming landscape doesn't look too different from last quarter. Was Iger trying to make the call a celebratory day for streaming? Because he completely misread the room. People were more panicked by the issues with linear television than they were excited about DTC eking out a profit (sort of). Moreover, I have to wonder what happened in the month of April. April 9th is when they announced that they would be having the early earnings call. One would assume they were feeling upbeat about 3rd quarter guidance when they scheduled the call. But over April red flags must have emerged. If there was a parks slowdown, it would have had to really started to appear late March or early April. If there's a bit of good news in this quarter, it seems like Hong Kong Disneyland is bearing fruit from their Frozen land. While I may have quibbles about the spending priorities and design decisions at Hong Kong Disneyland, I can't help but be pleased when an entity profits from perseverance and solid investment. This makes it significantly more likely that the government of Hong Kong will be willing to make further investments into the park and resort. So, there's a little parks positivity! And of course, DCL should have a fantastic 2025. This year is going to be a ramp up, but 2025 is when they should reap the rewards. That early-2025 film slate is looking a little precarious. While there are still holes to be filled, Marvel could be in for a turbulent 2025. Call me cynical, but I'm not too upbeat about Captain America 4 or Thunderbolts. With that said, I am intrigued by Fantastic Four. That movie and franchise could relaunch Marvel in a way I don't think Deadpool 3 can. Not that Deadpool 3 won't be successful (I'm expecting a billion+ gross), but I think it will be its own thing with limited MCU interaction. Fantastic Four can actually meaningfully alter the course of the MCU. That's a lot of pressure to put on a movie in its first outing, but it's quite important. Elio and Snow White are also probably bombs. That Spring release schedule is going to be a bumpy time. I wonder if Disney has more Disney+ shows in the pipeline they're planning to convert to theatrical releases. And as for 2024, Inside Out 2 better perform...

Nubs708 days ago

He just wants to get into his office shower before all the hot water gets used up.

Sirwalterraleigh8 days ago

Maybe on the disboards? 🤔

JoeCamel8 days ago

Lilo is that you?

MarvelCharacterNerd8 days ago

Or maybe not everyone is aware that Bob is a morning person and I wanted to add that information to the discussion?

Sirwalterraleigh8 days ago

..:you might have missed the joke there 🤔

MarvelCharacterNerd8 days ago

He's well known for being an early riser - up before dawn to work out and get to the office before anyone else. Google all the articles that talk about him getting up at 4 a.m.

Sirwalterraleigh8 days ago

The yacht was probably casting off at 12 PST…good call 👍🏻👍🏻

CastAStone8 days ago

There doesn’t have to be any sort of business reason. Maybe bob just doesn’t want to do late afternoon calls anymore.

MisterPenguin9 days ago

Just like how Bob played Brian's ego by bidding up Sky. And since Fox owned part of Sky, Comcast had to buy out Disney's acquired share. Comcast: You know that extra money you had to pay to acquire Fox, well, here, have it back and give us your part of Sky, which, as mostly a linear network, will tremendously drop in value over the next decade. Thanks!

Sirwalterraleigh9 days ago

It would be very silly to equate no crash as evidence that one is impossible

Lilofan9 days ago

But I love Wall Street long term. The Dow is in record setting territory again and my 401K and other investments are running like the bulls ! Its a great time to be an investor ! Some many had predicted the market crashing at any moment ( for the last 2 years ) , how wrong they are !