Today was Disney’s Q2 FY22 Earnings Results Webcast, where The Walt Disney Company shared its earnings for the second quarter of 2022, which ended April 2. The Company separates its earnings into different categories, one of which is the Disney Parks.
Disney Parks reported they brought in $6.7 billion in revenue in Q2, compared to last year’s $3.2 billion, making for a $3.5 billion increase. The Walt Disney Company claims that the revenue growth is primarily due to the domestic Parks, with a slight increase in revenue at the international Parks. A segment from the report:
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.
This increase in revenue comes after many former Guests claimed to be boycotting The Walt Disney Company CEO Bob Chapek privately and publicly voiced support for the LGBTQ+ Community, speaking out against Governor Ron DeSantis following the passage of Florida’s Parental Rights in Education Act, also known as the “Don’t Say Gay” bill.
This sparked protests from supporters of the legislation, who called Disney “Groomers” for disapproving of the bill. Last week, protestors were seen flying Nazi flags outside of the Walt Disney World Resort.
More Details from the Report
The Walt Disney Company credits the increase in revenue to various factors, namely the lessening of COVID-19 restrictions leading to higher room occupancies at the Disney Resorts and on Disney Cruises. Naturally, an increase in Guests leads to more spending on merchandise, food, and more. Despite higher operating costs due to inflation, Disney reports increases in Guest spending to offset those higher costs. From the report:
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 7 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 prioryear 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.
Disney also reported an increase in subscriptions to Disney+, following the move of CW Marvel shows to Disney+ after their contract ended with Netflix. This also comes as controversy stirs behind Netflix’s decision to raise prices and add advertisements to their platform.
Have you been to a Disney Park yet this year or are you planning to go? Let us know in the comments.
If you want to visit Disneyland or Walt Disney World on your next family vacation to experience any of the four Disney Parks — Magic Kingdom, EPCOT, Disney’s Animal Kingdom, and Disney’s Hollywood Studios — but aren’t sure where to begin planning, then don’t hesitate to reach out to our friends over at the Authorized Disney Vacation Planners at Academy Travel for a free quote.