The Walt Disney Company has just reported earnings for its third fiscal quarter which ended July 2, 2022 with revenue increasing 26%.
Bob Chapek said in the report “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”.
The revenue for Disney Parks, Experiences and Products revenues for the quarter increased to $7.4 billion compared to $4.3 billion in the prior-year quarter when Disneyland only operated for 65 of the days and Walt Disney World was still operating at reduced capacity. Higher volumes and increased guest spending has contributed to this substantial rise with higher numbers of occupied room nights and cruise ship sailings.
Back in May, the Walt Disney Company Q2 Earnings report stated a revenue of $6.7 billion for the Disney Parks, Experiences and Products second quarter of 2022 which showed a $3.5 billion increase in revenue compared to the same period in 2021.
As you can see, the revenue in Q3 has risen from $6.7 billion to $7.4 billion rise which is put down to the continued popularity of Genie+ Lightning Lane which has increased the average per capita ticket revenue as well as the already mentioned higher volumes and price increases.
During the Q3 earnings call, Bob Chapek said that “Even our Genie product, which we released short of a year ago, now about 50% of the people who come through the gate, buy up to that Genie product…which you can see in results of our yields.”
Many loyal fans have criticised Disney recently for money grabbing saying they are no longer choosing to visit Walt Disney World. However, based on the revenues and attendance figures it doesn’t look like this is the general consensus. Genie+ Lightning Lane has frustrated guests but 50% are choosing to purchase it and the Parks Reservation system which has been another gripe for Disney fans is also here to stay and still the parks are full and guests are choosing to spend, spend, spend!
Disney’s stock price is also on the up. We reported back in June that the stock price had fallen from $185.15 back in October 2021 to $94.22 at the close of business on June 14. Today the stock price (August 11) has opened at $118.39 which is a considerable rise from June.
The full Q3 Walt Disney Company Earnings Report can be seen here. Things are looking good for the Walt Disney Company as we head through 2022 and we expect this upturn to continue as demand for the parks continues and with TRON Lightcycle / Run set to open in the near future, 2023 should certainly be a bumper year.
