Park of the Week: Islands of Adventure

Disney Parks Report Surge in Income for Second Quarter

May 11, 2022, 3:17 PM · Disney Parks, Experiences and Products reported income of $1.8 billion on revenue of $6.7 billion for the three-month period ending April 2. That improves a loss of $406 million in the same period one year ago, when Disneyland's theme parks and the Disney Cruise Line remained closed due to the pandemic.

"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," Disney noted in its report. "The increase in average per capita ticket revenue was due to a favorable attendance mix and the introduction of Genie+ and Lightning Lane in the first quarter of the current fiscal year."

Disney also noted higher costs due to volume growth, cost inflation, and higher marketing spending.

Disney's U.S. theme parks accounted for $1.385 billion in income in the quarter, offset by $268 million loss at the international parks. Shanghai Disneyland and Hong Kong Disneyland were closed for more days in the quarter than in the same period in 2021, even though Disneyland Paris was open for the quarter while being closed a year earlier.

Overall, Disney reported a 23% increase in revenue for the quarter over the same period in 2021, leading to a 50% increase in segment operating income, up to $3.699 billion.

"Our domestic parks were a standout," Disney CEO Bob Chapek said. "They continue to fire on all cylinders, powered by strong demand coupled with customized and personalized guest experience enhancements that grew per capita spending by more than 40% versus 2019.

"The response to next-generation storytelling like Star Wars Galactic Starcruiser has been phenomenal. In fact, guest ratings for this immersive experience, which opened March 1, are incredibly high and in line with our best-in-class offerings. Demand is strong, and we expect 100% utilization through the end of Q3."

"We continue to be pleased with the overall demand and attendance trends at our domestic parks," Chief Financial Officer Christine McCarthy said. "In fact, there were many days in the quarter where we saw demand exceed 2019 levels. However, we are continuing to control attendance through our reservation system with an eye on delivering equality guest experience.

"As Bob mentioned earlier, per capita guest spending at our domestic parks increased by over 40% versus Q2 of fiscal 2019 and by 20% versus Q2 of fiscal 2021 with increases across the board on admissions, food and beverage, and merchandise. Looking ahead to the third quarter, our forward looking demand pipeline at both Walt Disney World and Disneyland remains robust. And while attendance from international visitation is still in the early days of recovery, we are beginning to see some improvements."

Replies (7)

May 11, 2022 at 11:43 PM

Hard to imagine there's been an increase in food and beverage spending given how difficult it is to buy food with the asinine mobile ordering fiasco. I'd imagine if you could see the details you'd learn they've actually sold far less food overall, but their epic price hikes have brought them more revenue.

To your other article about the analyst call, Robert, which is very trenchant, another way to put it is that no analyst asked about the MAGA nonsense because they know it isn't material to Disney's bottom line. Even if some fussy bigots dissolve Reedy Creek, it won't have a material impact on Disney's bottom line; even if would be fascists end Mickey's copyright, it won't have a material impact on Disney's bottom line.

And let's be real: Chapek is MAGA, there's every possibility he and DeSantis are enjoying a snifter of brandy together while they laugh along with a bootleg copy of Song of the South. It's all political theater designed to further agitate the MAGA cult.

May 12, 2022 at 9:08 AM

Disney's stock price is down 35% since the start of the year much like the rest of Wall Street stocks, but even after the earnings call, the price dipped another 3%. I hardly believe that is Wall Street ignoring anything, even if specific RCID questions were not asked.

Gay Days is early next month, and after their conclusion I fully expect Disney to go back to donating to Republican campaigns and causes in Florida as the mid-term elections approach. They have to help ensure RCID will be declared not dissolved ASAP and get any other benefits from the Republican-lead state government that they will need going into 2023.

May 12, 2022 at 9:23 AM

Fantastic news for Disney and the themed entertainment industry. With the pending opening of GOTGCR, the new Future World and TRON, the Florida parks will continue to thrive.

May 12, 2022 at 10:07 AM

disney is a much larger corporation than its theme park division, and its stock valuation reflects that.

May 12, 2022 at 11:05 AM

I think it's interesting how straight forward Chapek was with their revenue, stating that Genie+, admission increases, and other price increases were mostly responsible for growth. That means that in order to maintain the current rate of growth, Disney needs to either increase attendance (something they've been hesitant to do recently) or increase prices even further.

That's the problem with Wall Street. you're only as good as your most recent quarter. With all of the new sources of revenue Disney created over the past year, it's difficult to see a situation where they can continue to grow at the same rate moving forward without significantly increasing the financial strain on guests.

May 12, 2022 at 11:45 AM

From HBO's AMAZING 'Silicon Valley' -- Jack Barker: "Pied Piper's product is its stock. Whatever makes the value of the stock goes up is what we are going to make. Maybe sometime in the future, we can change the world and perform miracles and all of that stuff."

Russell could not be more on the money (HA! See what I did there?) when he writes: "That's the problem with Wall Street. you're only as good as your most recent quarter."

May 12, 2022 at 6:22 PM

Income and revenue are up over 2021 but the stock price is way down (44%) in 2022. And there is no indication of troubleā€¦haha! Good luck, Chapek. Facts are facts.

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