For those Disney Fanatics who have been waiting for the final numbers to see how Bob Igers’ return has impacted the company, we have them.
The Walt Disney Company will have its first FY2023 earnings call later today in preparation for which they have released its earnings report. It seems like things might just be on the up and up for the Mouse House, which has been going through tumultuous times lately.
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The first point of note for Disney Q1 earnings is that revenue from the first quarter has increased by 8%. Disney CEO Bob Iger commented, “After a solid first quarter, we are embarking on a significant transformation, one that will maximize the potential of our world-class creative teams and our unparalleled brands and franchises.”
First up, the details on Disney Parks, Experiences, and Products.
The revenues for the quarter increased 21% to $8.7 billion, and segment operating income increased 25% to $3.1 billion. Disney attributed the income growth at domestic Parks — Walt Disney World Resort and Disneyland Resort—to higher volumes and increased Guest spending. The higher volume of Guests was also partly credited to increased passenger cruise days from Disney Cruise Line. Disney also doubled down on the revenue driven by Genie+ and Lightning Lane—it seems more and more apparent the service isn’t going anywhere.
Internationally, it appears that growth at Disneyland Paris and higher royalties from Tokyo Disney Resort have contributed to the increase in revenue, while this was offset by a decrease seen at Shanghai Disney Resort. During the call, Disney executives confirmed this was also in part to the Disney Resort needing to be shut during part of quarter 1.
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With respect to the Disney Media and Entertainment Distribution sector, per the report Direct-to-Consumer revenues for the quarter increased 13% to $5.3 billion, but at the same time, operating loss increased from $0.5 billion to $1.1 billion. Per Disney’s analysis, this increase was due to higher losses at Disney+ and decreased Hulu success. It appears ESPN+ partially offset these losses as well.
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Iger also shared, “We believe the work we are doing to reshape our company around creativity, while reducing expenses, will lead to sustained growth and profitability for our streaming business, better position us to weather future disruption and global economic challenges, and deliver value for our shareholders.”
You can check out the full report here.
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