USA: The Walt Disney Company Reports Strong Q3 Results across Its Businesses

“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. 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,” commented Bob Chapek, CEO of The Walt Disney Company, on the company’s Q3 results of the current fiscal year (FY) 2022, which ended on July 2^nd. The results were officially reported on Wednesday this week, leading to a clear increase of share value on the US stock exchange. Total revenues of all Disney business units grew in Q3 to USD 21.5 billion (EUR 20.9 billion) or by 26 per cent compared to the same period of the previous year; cumulated with the results from Q1 and Q2 of the current financial year, the revenue result of the Walt Disney Company is USD 62.6 billion (EUR 60.7 billion). The adjusted earnings per share for the now completed third quarter amount to USD 1.09 (EUR 1.06) – in the comparable period of 2021, this result was USD 0.80 (EUR 0.78).

Disney’s theme park division, Disney Parks, Experiences and Products, generated revenues of USD 7.4 billion (EUR 7.2 billion) in Q3 2022, compared to USD 4.3 billion (EUR 4.2 billion) in the same period in 2021. The Walt Disney Company attributes the significant growth in operating income to higher visitor numbers and guest spending at its domestic US parks and resorts. Disney Cruise Line ships were also in operation throughout the quarter just ended, while cruises were suspended in the same quarter last year. Growth in guest spending is attributed to an increase in average ticket revenue per capita and higher average daily hotel room rates. The company says the increase in average ticket revenue per capita was achieved also thanks to the launch of its new digital services “Genie+” and “Lightning Lane” in the first quarter of the current fiscal year.

The positive results at the park and resort destinations outside the US were primarily due to high visitor numbers at Disneyland Paris (which is celebrating its 30^th anniversary this year), partially offset by a decrease in revenue figures at Shanghai Disney Resort, which was open continuously in Q3 of the past FY, but was only allowed to operate on three days in Q3 2022. On the cost side, monetary inflation is currently being felt in particular. Overall, however, the Walt Disney Company’s current business year was marked by significantly positive growth in its various business areas, even exceeding expectations. (eap)