The Walt Disney Company reported earnings today for the first quarter and fiscal year ending January 1, 2022. Despite the fact that we are currently in a pandemic, Disney is reporting record revenue and operating income. Are you surprised at Disney’s earnings this year?
Disney’s first quarter revenue
In an audio webcast today, Disney discussed fiscal first quarter 2022 financial results. While Disney expected revenues of $20.91 billion, the company is reporting revenues of $21.82 billion!
Disney CEO, Bob Chapek, spoke on the reasons for Disney’s great success this quarter.
“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.”
Chapek went on to state, “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.”
Disney Parks, Experiences and Products had a lot to do with this dramatic increase. Revenues for the quarter in this area increased to $7.2 billion compared to $3.6 billion in the prior-year quarter. Growth was attributed to increases in Theme Park attendance, occupied Resort room nights, cruise ship sailings, ticket price rises and higher guest spending, including Genie+ and Lighting Lane purchases.
Revenues for the quarter in this area increased to $7.2 billion compared to $3.6 billion in the prior-year quarter.
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.
Bob Chapek, CEO Disney
Are you surprised to learn that Disney had such a successful first quarter? Let us know your thoughts in the comments below, or tell us on Facebook.