Disney's Revenue Up By 23% To $19.25 Billion In Q2

The Walt Disney Company (DIS) reported on Wednesday that its Q2 of fiscal 2022 revenue stood at $19.25 billion, soaring 23% annually from a low pandemic base, but missing $20.11 billion estimate. The company's net income, however, nearly halved on the year in Q2, dropping 48% to $470 million, or $0.26 per share, diluted. Adj. earnings per share came in at $1.08 vs. $1.17 estimate.

Operationally Disney reported 129.8 million Disney+ subscribers at the end of Q1. Disney+ had 44.4 million paid subscribers as of April 3, jumping 19% YoY. The entertainment company’s Media and Entertainment segment generated revenue of $13.6 billion, up 9% YoY. Direct-to-consumer revenue within the segment rose by 23% YoY to $4.9 billion. International Disney+ subscribers excluding Hotstar hit 43.2 million in Q2, up 39%. Total Disney+ subscribers including Hotstar hit 137.7 million in the quarter. The company’s ESPN+ sports based streaming platform reported 22.3 million subscribers, up 62% YoY. Hulu had 45.6 million subscribers at the end of the quarter, up 10%. Disney reported gains for Disney+, ESPN+ and Hulu for average revenue per user in the quarter; ARPU of $4.35 was up 9% for all users.

Also, Disney reported revenue for its Parks, Experiences And Events segment of $6.65 billion, up 110% YoY. Operating income for the Parks segment totaled $1.8 billion, an improvement from the loss of $406 million in last year’s Q2. Operating income for the Parks segment also helped offset a 32% YoY decline in the operating income for the Media segment at $1.9 billion. Disney said it had higher guest counts and increased guest spending across its park segment. The company also had more cruise ship sailings for its cruise line business.

"Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services – with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million – once again proved that we are in a league of our own," CEO Bob Chapek commented.

The company's shares rose by nearly 3% in the after-hours trading after the announcement. However, Disney quickly erased those gains during the company's earnings call after CFO Christine McCarthy warned that the tough economic environment, enhanced by inflationary pressures, supply chain disruptions and a tight labor market, could weigh on margins. Disney now has a 52-week high of $187.58 and a 52-week low of $104.80.