The Walt Disney Company released the Fourth Quarter Fiscal results for 2022 yesterday and although there was an increase in revenue for the Disney Parks, Experiences and Products division, it failed to reach analysts predictions.
According to StreetAccount, Wall Street analysts had predicted a $7.5 billion revenue total for Q4, however the actual figure was slightly lower at $7.4 billion. This $7.4 billion was a large increase on the $5.5 billion compared to Q4 from 2021.
Operating income for the division also rose to $1.5 billion compared to $0.6 billion in the prior-year quarter which was due to increased spending at Disney’s domestic and international parks and bookings being made for the Disney Wish.
According to CNBC, again the parks unit did not reach analysts predictions, falling below the $919 million expected by StreetAccount, only reaching $815 million. Disney put this down to higher costs which were only partly offset by ligher ticket prices due to Genie+ Lightning Lane.
In the rest of the report, overall revenues across the whole Walt Disney Company for Q4 grew 9% and revenue for the whole year grew 23%. Diluted earnings per share (EPS) from continuing operations for the quarter decreased to $0.30 from $0.37 in the prior-year quarter. Diluted EPS from continuing operations for the fiscal year ended October 1, 2022 increased to $1.75 from $1.11 in the prior year and for the year increased to $3.53 from $2.29 in the prior year.
The Walt Disney Company Chief Executive Officer, Bob Chapek said “2022 was a strong year for Disney, with some of our best storytelling yet, record results at our Parks, Experiences and Products segment, and outstanding subscriber growth at our direct-to-consumer services, which added nearly 57 million subscriptions this year for a total of more than 235 million,”.
In summary, Chapek said, “Our fourth quarter saw strong subscription growth with the addition of 14.6 million total subscriptions, including 12.1 million Disney+ subscribers. The rapid growth of Disney+ in just three years since launch is a direct result of our strategic decision to invest heavily in creating incredible content and rolling out the service internationally, and we expect our DTC operating losses to narrow going forward and that Disney+ will still achieve profitability in fiscal 2024, assuming we do not see a meaningful shift in the economic climate. By realigning our costs and realizing the benefits of price increases and our Disney+ ad-supported tier coming December 8, we believe we will be on the path to achieve a profitable streaming business that will drive continued growth and generate shareholder value long into the future. And as we embark on Disney’s second century in 2023, I am filled with optimism that this iconic company’s best days still lie ahead.”.
To read the full report, click here.
