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Credit: Inside the Magic The Walt Disney Company is continuing to bounce back after having some set backs due to the ongoing pandemic.
In Q4 of the fiscal 2021 year, Disney reported a 38% profit increase in the Direct-to-Consumer industry. The Disney Parks, Experiences and Products revenues for the quarter also increased to $5.5 billion, compared to $2.7 billion in the prior-year quarter.
Now, we are able to see the earnings results for Q1 of the fiscal 2022 year as The Walt Disney Company has just released the report.
Related: Disney CEO Says Parks Attendance Is Bouncing Back After Sudden Slow Down
Throughout the year, the Walt Disney Company releases Quarterly Earnings Reports, which CEO Bob Chapek and CFO Christine McCarthy typically discuss during an earnings call.
During these earnings calls, Chapek and McCarthy discuss theme park and entertainment industry revenue, but also discuss what is going on within the theme parks, on the popular streaming service, Disney+, and within the entertainment industry as they offer insight (sometimes, they even make exciting announcements on what fans can look forward too in the near future!)
And today marked the first earnings call of 2022, meaning The Walt Disney Company released the earnings results for Q1 of the fiscal 2022 year. Here’s what we found when reading the report.
Related: Disney Stock Drops After CEO Chapek Warns of Disney+ Slump
The report stated Direct-to-Consumer revenues for the quarter increased 34% to $4.7 billion and operating loss increased 27% to $0.6 billion. The increase in operating loss was due to higher losses at Disney+, and to a lesser extent, ESPN+, partially offset by improved results at Hulu.
In the Disney Parks, Experiences and Products industry, revenues for the quarter increased to $7.2 billion compared to $3.6 billion in the prior-year quarter, which was due to a number of increases across the Disney Parks.
The report stated:
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.
Bob Chapek, Chief Executive Officer of The Walt Disney Company, said:
“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.
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.”
Related: Disney Will Spend $8 Billion More on New Streaming Content in 2022
Inside the Magic will continue to update you as we get information regarding The Walt Disney Company’s earnings, announcements, and more.
What do you think of the Q1 earnings results revealed by The Walt Disney Company? Let us know in the comments below.