Disney first quarter earnings for fiscal 2022 show record revenue and operating income at the domestic parks and resorts

Feb 09, 2022 in "The Walt Disney Company"

Posted: Wednesday February 9, 2022 4:10pm ET by WDWMAGIC Staff

The Walt Disney Company today reported earnings for its first quarter and fiscal year ended January 1 2022 with revenues of $21.82 billion vs $20.91 billion expected.

“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.”

Disney Parks, Experiences and Products revenues for the quarter increased to $7.2 billion compared to $3.6 billion in the prior-year quarter. Growth was attributed to increases in attendance, occupied room nights, cruise ship sailings, ticket price rises and higher guest spending, including Genie+ and Lighting Lane purchases.

You can view the full Q1 2022 earnings report here, and below is the Parks, Experiences and Products statement.

Disney Parks, Experiences and Products

Disney Parks, Experiences and Products revenues 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. Operating income for the quarter reflected increases at our parks and experiences businesses, partially offset by a decrease at our consumer products business.

Operating income growth at our domestic parks and experiences was due to higher volumes and, to a lesser extent, 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 attendance mix and the introduction of Genie+ and Lightning Lane. Higher costs were due to an increase in operating costs, due to volume growth, and higher marketing spending. Our domestic parks and resorts were open for the entire current quarter, whereas Disneyland Resort was closed for all of the prior-year quarter, and Walt Disney World Resort operated at reduced capacity due to mandatory COVID-19 restrictions.

The increased operating income at our international parks and resorts was due to growth at Disneyland Paris and Hong Kong Disneyland Resort. Results at Disneyland Paris were due to increases in attendance and occupied room nights, partially offset by higher operating costs. Growth at Hong Kong Disneyland Resort was driven by higher attendance. Disneyland Paris was open for the entire current quarter while only open for 26 days in the prior-year quarter. Hong Kong Disneyland Resort was open for 68 days in the current quarter compared to 42 days in the prior-year quarter. Shanghai Disney Resort and Tokyo Disney Resort were open for the entire quarter in both the current and prior years. Certain of our international operations continue to be impacted by COVID-19-related capacity and travel restrictions.

Lower results at our consumer products business were due to the closure of a substantial number of Disney-branded retail stores in North America and Europe in the second half of fiscal year 2021.

Discuss on the Forums

Get Walt Disney World News Delivered to Your Inbox

View all comments →

HauntedPirateMar 10, 2022

BoA has a $191/share target for DIS. Why? An excerpt from a BoA analyst: “Disney was able to implement multiple technology enhancements thanks to park closures - which will lead to "increased capacity, decreased employee headcount and increased margins."” That says all anyone needs to know about the direction of the parks. They look to please their Wall Street masters, nothing else matters anymore. I’m curious what “technology enhancement” added capacity to the parks, though. 🧐🤨🤔

MisterPenguinMar 10, 2022

Transcript... https://thewaltdisneycompany.com/app/uploads/2022/03/q1-fy22-earnings-transcript.pdf

SirwalterraleighFeb 15, 2022

Seems it’s a “game of staffing”…they’re challenging for the iron throne

MagicHappens1971Feb 15, 2022

I can’t remember what thread we were discussing this in but I’ve been to Disney 2-5 times a month since October and I have not seen crowd levels as high as they are today since pre-covid. Wait times are astronomical as well are waits for food & beverage, at least at MK. I’m heading to HS & Epcot later so I’ll see if the same pans out there

TouchdownFeb 12, 2022

Gaining profits by raising per cap spending while depressing attendance works really well, until it doesn’t and profits take a very quick, very steep nose dive. That happens when people feel they are being ripped off and then loudly tell all their friends keeping them away. It then takes years to build that trust back. Americans are feeling price pinched at every angle and soon interest rates are set to rise making debt more expensive. I don’t know when we are going to reach that point with Disney but I do know it will happen at some point if they continue down this path (which they will as they are now stuck in a positive feedback loop.) Given the current environment, I feel like domestic guests are near this point but given international tourist travel is likely to increase in the near term we probably have another year or two, but I don’t know if Bob sticks along that long.

SirwalterraleighFeb 11, 2022

You can’t sequel it…but Disney can DEFINITELY do a live action remake

MisterPenguinFeb 11, 2022

That means they had a lot of memorialized characters at the end!!

larryzFeb 11, 2022

Maybe that's 'cause everyone DIES at the end...

SirwalterraleighFeb 11, 2022

Wait…they have fans??😱

LilofanFeb 11, 2022

One that no longer is a member is a diehard Bengals fan or any Cincy team for that matter.

SirwalterraleighFeb 11, 2022

Aren’t you from Ohio?!?

LilofanFeb 11, 2022

A number will overeat, drink to excess, and / or win or lose big on Super Bowl Sunday. Go Rams!

SirwalterraleighFeb 11, 2022

That’s not necessarily a “bad” thing…

Nubs70Feb 11, 2022

Give the Fed time. I think a brick wall is out there just after the 2nd rate increase.