Walt Disney Company second quarter results show boost in revenues at the parks credited to Genie+ spending and increased attendance

May 11, 2022 in "The Walt Disney Company"

Posted: Wednesday May 11, 2022 4:09pm ET by WDWMAGIC Staff

The Walt Disney Company today reported earnings for its second fiscal quarter ended April 2 2022 showing a growth in revenues for the quarter of 23% at $19.25 billion.

Shares of Disney rose 4.5% after the closing bell after the company reported stronger-than-expected growth in Disney+ subscribers.

“Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services—with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million—once again proved that we are in a league of our own,” said Bob Chapek, Chief Executive Officer, The Walt Disney Company. “As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected, and magical Disney universe for families and fans around the world.”

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

You can read the full Q2 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 $6.7 billion compared to $3.2 billion in the prior-year quarter. Segment operating results increased by $2.2 billion to income of $1.8 billion compared to a loss of $0.4 billion in the prior-year quarter. Higher operating results for the quarter reflected increases at our domestic parks and experiences businesses and, to a lesser extent, at our international parks and resorts and merchandise licensing businesses.

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 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 a favorable attendance mix and the introduction of Genie+ and Lightning Lane in the first quarter of the current fiscal year. Higher costs were primarily due to volume growth, cost inflation 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 in the prior-year quarter due to COVID-19 restrictions.

Improved results at our international parks and resorts was due to growth at Disneyland Paris, partially offset by decreases at Hong Kong Disneyland Resort and 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 and increased marketing costs. The decreases at Hong Kong Disneyland Resort and Shanghai Disney Resort were driven by lower attendance. Disneyland Paris was open for the entire current quarter and closed for all of the prior-year quarter. Hong Kong Disneyland Resort was open for 3 days in the current quarter compared to 33 days in the prior-year quarter. Shanghai Disney Resort was open for 78 days in the current quarter and open for all of the prior- year quarter. Tokyo Disney Resort was open for the entire quarter in both the current and prior years.

Growth in merchandise licensing was driven by higher sales of merchandise based on Mickey and Minnie, Spider-Man, Star Wars Classic and Disney Princesses, partially offset by lower minimum guarantee shortfall recognition.

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MisterPenguinMay 16, 2022

Reaction of focus groups.

denyuntilcaughtMay 16, 2022

Then either 1) early-out buzz is indicative of a solid first season run and thus warranting a second season renewal or 2) the production costs were better spread out over multiple seasons. The latter happens more often then you'd think.

VJMay 16, 2022

what if it's renewed before the first season premieres?

CastAStoneMay 16, 2022

Bob Chapek would fit in extremely well as a CEO of most large American businesses. Disney is a poor fit because it’s creatively driven and because it’s built on product quality, which is foreign to most companies.

Dad 2 M & MMay 16, 2022

Definitely have plenty of them wonkers round here….some must be approaching majority shareholder status….

LilofanMay 16, 2022

Some keep thinking the sky will fall and some are disappointed it hasn't.

AnteaterMay 16, 2022

I've been watching for this tipping point for more than 5 years now. I'm amazed that we still haven't hit it...

GhostHost1000May 16, 2022

My guess (and that’s all it is), is we are seeing a rush of guests back to the parks since Covid. Many having saved up for this trip not traveling much if any for 2 years, but with all the price hikes, genie+, etc challenges….we will see attendance go down eventually. Of course that would be after the overseas guest come back as well which will also help make the parks look like they are awesome and making a ton of money…I just think eventually guests are going to hit a limit on spending, return trips, and frustration on what it takes to plan a day at Disney anymore

LilofanMay 16, 2022

Pressler and made a few millions as CEO at Gap for several years and left with a little nest egg when forced out.

SirwalterraleighMay 16, 2022

Let me be clear: I totally agree with your assessment. That’s sound economics. What it’s not is riverboat gambling…which is what all our stock wonk “experts” around here want. Laughably saying Disney is a “buy” at $160 😂

HauntedPirateMay 16, 2022

$lappie would be a great leader for The Gap... Didn't another similarly foul P&R guy end up there? 🤔 ;)

Dad 2 M & MMay 16, 2022

Still rather have them make me more money than send it back ….. as saying we’ve done all we could with your $$$ and you can have it back Maybe in a decade or so the $$$ sent back will be more attractive ….. for now grow $ into $$ then $$$…etc….sustainable as always, right?

SirwalterraleighMay 16, 2022

Because it’s quick and easy…

pdude81May 16, 2022

Gotcha. I wasn't sure you were taking my earlier post as intended. I was responding to a prior poster saying that the stockholders are happy about the dividends.