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Wednesday, August 10, 2022

Disney’s Positive Earnings Report

 by Ray Keating



August 10, 2022


The Walt Disney Company had a stellar earnings report today for its fiscal third quarter that ended July 2.


Earnings per share came in at $1.09 (diluted excluding certain items). That was versus $0.80 in the prior year quarter, and it beat market expectations of $0.96.


Disney+ added 14.4 million subscribers, beating market expectations of roughly 10 million. Disney+ subscribers now register 152.1 million. Disney’s goal is to hit 240 million Disney+ subscribers in 2024.


ESPN+ subscribers came in at 22.8 million (versus 22.3 million at the end of the previous quarter) and Hulu at 46.2 million (versus 45.6 million at the end of the previous quarter). Subscriptions across Disney+, Hulu and ESPN+ stand at 221.1 million. 


That 221.1 million total across all three streaming services actually now runs just ahead of the number of Netflix subscribers.


Also, a Disney+ option with ads will kick off in December at $7.99 per month, with the subscription price for Disney+ without ads increasing from $7.99 to $10.99 per month. The Disney bundle – Disney+, ESPN+, and Hulu – will rise from $13.99 to $14.99 per month.


By the way, it was noted that the current fiscal year is expected to be the peak losses for Disney+.


Revenues for the quarter grew by 26 percent, coming in at $21.5 billion, compared to market expectations of $20.96 billion. And revenues for the first nine months of the current fiscal year were up by 28 percent versus the same nine months last year.


The domestic theme parks thrived. The Disney Parks, Experiences and Products segment experienced 70 percent revenue growth in the third quarter, and for the first nine months of this fiscal year, revenues were up 92 percent. Revenues at domestic parks were up 104 percent versus the same quarter last year. On the earnings call, it was noted that the domestic parks are still experiencing demand in excess of available park reservations. In addition, domestic hotels for Disney ran at 90 percent occupancy.


As for international visitors to domestic parks, mainly Disney World, it is coming back after being nonexistent during the pandemic peak, but it’s still not back to where it was traditionally. When that traditional level is reached, Disney expects a solid bump to revenues and earnings given that such guests stay longer and spend more.


At the time of this writing, Disney stock was up 4.0 percent during trading hours of August 10, and up an additional 6.5 percent in after-hours trading.




Ray Keating is the editor, publisher and economist for DisneyBizJournal.com; and author of the Pastor Stephen Grant thrillers and mysteries, and the Alliance of Saint Michael novels; and assorted nonfiction books. Have Ray Keating speak your group, business, school, church, or organization. Email him at raykeating@keatingreports.com.


The views expressed here are his own – after all, no one else should be held responsible for this stuff, right?


Two great ways to order Cathedral: An Alliance of Saint Michael Novel, which is Ray’s sixteenth work of fiction, and the first in the Alliance of Saint Michael series. Signed paperbacks here and the Kindle edition here


Two great ways to order Ray Keating’s new nonfiction book – The Weekly Economist: 52 Quick Reads to Help You Think Like an Economist. Signed paperbacks here, and paperbacks, hardcovers and Kindle editions here.  


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Also, check out Ray’s podcasts – the Daily Dose of DisneyFree Enterprise in Three Minutes, and the PRESS CLUB C Podcast.

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