Disney beats Q3 earnings estimates boosted by increased revenue at the parks attributed partially to the sales success of Genie+

Aug 10, 2022 in "The Walt Disney Company"

Posted: Wednesday August 10, 2022 4:06pm ET by WDWMAGIC Staff

The Walt Disney Company today reported earnings for its third fiscal quarter ended July 2, 2022, beating estimates.

Disney Parks, Experiences and Products revenues for the quarter increased to $7.4 billion compared to $4.3 billion in the prior-year quarter. Segment operating income increased $1.8 billion to $2.2 billion compared to $0.4 billion in the prior-year quarter.

“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. With 14.4 million Disney+ subscribers added in the fiscal third quarter, we now have 221 million total subscriptions across our streaming offerings,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “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.”

We will hear more from Disney's Bob Chapek in the upcoming earnings call at 4:30pm.

You can read the full Q3 Walt Disney Co earnings report here, and below is the Disney Parks, Experiences and Products segment comments.

Disney Parks, Experiences and Products

Disney Parks, Experiences and Products revenues for the quarter increased to $7.4 billion compared to $4.3 billion in the prior-year quarter. Segment operating income increased $1.8 billion to $2.2 billion compared to $0.4 billion in the prior-year quarter. Higher operating results for the quarter reflected increases at domestic parks and experiences and, to a lesser extent, at international parks and resorts.

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 were operating during the entire 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 and higher average daily hotel room rates. The increase in average per capita ticket revenue was due to the introduction of Genie+ and Lightning Lane in the first quarter of the current fiscal year and a reduced impact from promotions at Walt Disney World Resort, partially offset by an unfavorable attendance mix at Disneyland Resort. Higher costs were primarily due to volume growth, cost inflation and new guest offerings. Our domestic parks and resorts were open for the entire current quarter, whereas Disneyland Resort was open for 65 days of the prior-year quarter, and Walt Disney World Resort operated at reduced capacity in the prior-year quarter.

Improved results at our international parks and resorts were primarily due to growth at Disneyland Paris, partially offset by a decrease at Shanghai Disney Resort. Higher operating results at Disneyland Paris were due to increases in attendance and occupied room nights, partially offset by higher operating costs due to volume growth. Disneyland Paris was open for the entire current quarter compared to 19 days in the prior-year quarter. The decrease at Shanghai Disney Resort was due to the park being open for all of the prior-year quarter but only for 3 days in the current quarter.

Discuss on the Forums

Get Walt Disney World News Delivered to Your Inbox

View all comments →

MisterPenguinAug 12, 2022

So, you believe that if you were ever to buy property, and to do so anonymously, that you have no legal recourse to do so?

flynnibusAug 12, 2022

They were not fake - they were real legal entities with real lawyers and contacts. They were shell companies, not fakes. That's why it wasn't fraudulent and no one had any claim against them. The worst they did was get fake employment for one of the agents.

MisterPenguinAug 12, 2022

Full accounting of Disney's streamers quarter by quarter since Dec 2019: https://thewaltdisneycompany.com/app/uploads/2022/08/Supplemental-Information-for-Direct-to-Consumer-08-10-22.xlsx

mikejs78Aug 12, 2022

No legal definition of fraud supports this argument. What you believe is irrelevant. It wasn't lying.

MagicHappens1971Aug 12, 2022

We’ll it wasn’t illegal. Whether one considers it lying is more of a moral debate.

LilofanAug 12, 2022

If you believe that , I do not.

MagicHappens1971Aug 12, 2022

What they did wasn’t illegal, nor was it technically lying.

LilofanAug 12, 2022

If one buys land through a shell company representing a fake company with fake mgt , that’s fraud. If the landowner inquires who is buying up their land , and fake names and companies are told to the selling landowner , that’s lying. Shell companies also are known for evading taxes and embezzling funds but that’s another issue.

cranbizAug 12, 2022

Paying market value for land through a shell company is not fraud. Also, don't forget, not every land owner that was approached at that time sold. Land owners sold because they got what they were asking for the land. There was no arm twisting. Why do you keep up this line of thought? The value of swamp land isn't more valuable until the infrastructure is built. The land certainly would have got more expensive if others found out it was Walt Disney buying the land. Not because the land was worth more, it would have been because Disney was buying it. In fact once it did get out, that's exactly what happened. This is why companies today still do this.

LilofanAug 12, 2022

Still supporting the lie. If I was a landowner and inquired through the broker who is buying my land? The broker lied and would tell me company XYZ and the names of the heads of the company hiding the fact it was Walt. Thanks for playing.

flynnibusAug 12, 2022

Except there was no fraud - the 'fake' element was only to prevent speculation. The sellers were not underpaid nor were they duped into selling. They weren't lied to, they sold to a company they didn't know and through legitimate brokers. Obscuring the ultimate purpose was not lying. It was privacy.

LilofanAug 12, 2022

Next time one buys land one can set up fake names, fake companies , lie to others etc. let’s see how far one gets.

doctornickAug 12, 2022

Right. Plus they paid market value for the (relatively worthless) land. The land is significantly more valuable now only because of the investment of The Walt Disney Company

cranbizAug 12, 2022

What were they supposed to say? "Hi, I represent the Walt Disney company and want to buy your worthless swamp land to build a vacation resort. Will you sell me your land for x? "