Walt Disney Company Reports Q3 Results
(eap) Yesterday, The Walt Disney Company announced the results of the third quarter for the current fiscal year (FY), which ended on July 1, 2023. Overall, total revenues in Q3 grew by four percent to USD 22.3 billion (EUR 20.3 billion) compared to the same period last year; cumulated with the results from Q1 and Q2 of the current FY, the Disney Group’s revenue result is USD 67.7 billion (EUR 61.6 billion). Diluted earnings per share for the now-completed third quarter were USD 1.03 (EUR 0.94), a slight six percent drop from last year.
“Our results this quarter are reflective of what we’ve accomplished through the unprecedented transformation we’re undertaking at Disney to restructure the company, improve efficiencies, and restore creativity to the center of our business,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “In the eight months since my return, these important changes are creating a more cost-effective, coordinated, and streamlined approach to our operations that has put us on track to exceed our initial goal of USD 5.5 billion in savings as well as improved our direct-to-consumer operating income by roughly USD 1 billion in just three quarters. While there is still more to do, I’m incredibly confident in Disney’s long-term trajectory because of the work we’ve done, the team we now have in place, and because of Disney’s core foundation of creative excellence and popular brands and franchises.”
In its Disney Parks, Experiences & Products division, Disney generated revenues of USD 8.3 billion (EUR 7.6 billion) in Q3 2023 – 13 percent higher than the corresponding quarter in 2022, when revenues totalled at USD 7.4 billion (EUR 6.7 billion). The overall higher operating results were primarily driven by the international parks segment, with total revenue increased by 94 percent to USD 1.5 billion (EUR 1.4 billion). In contrast, domestic parks revenues grew only slightly by four percent to USD 5.6 billion (EUR 5.1 billion) and the consumer products division declined by three percent to USD 1.1 billion (EUR 1 billion).
Disney attributes the higher results at the international parks and resorts primarily to growth at Shanghai Disney Resort and, to a lesser extent, Hong Kong Disneyland Resort. The year-over-year quarter increase is due to the parks not having to deal with Corona-related closures in the current quarter. Domestic operations results were due to lower revenue at the parks and Disney Vacation Club, partially offset by an increase at Disney’s cruise line. In the parks, the declining results were due to lower revenue at Walt Disney World Resort in Orlando/FL, while Disneyland Resort (Anaheim/CA) earnings were up slightly, the company reported. The decline at Walt Disney World Resort was due to higher costs (inflation, closure of Star Wars: Galactic Starcruiser and lower volume (less room nights and park visitors) according to Disney.
In the upcoming years, Disney plans to open several new major attractions and launch new offers. These include the “World of Frozen” at the Hong Kong Disneyland Resort and the redesigned Pixar Place Hotel at the Disneyland Resort. The Disney Treasure and the third ocean liner of the “Wish” class are scheduled to leave ports for the first time in 2025. ■
