Walt Disney Company revenue soars in third-quarter earnings report despite frustration from many loyal fans

The Walt Disney Company has just published its results for its third fiscal quarter which ended on July 2, 2022 with revenues up 26%.

Bob Chapek said in the report “We had an excellent quarter, with our world-class creative and commercial teams driving outstanding performances at our domestic theme parks, strong live sports viewership growth and significant
the growth of subscribers to our streaming services. With 14.4 million Disney+ subscribers added during the third fiscal quarter, we now have 221 million total subscriptions across our streaming offerings.”

Picture: Disney

Revenue from Disney Parks, Experiences and Products for the quarter increased to $7.4 billion, from $4.3 billion in the year-ago quarter, when Disneyland operated only 65 days and Walt Disney World was still running at reduced capacity. Higher volumes and an increase in customer spending contributed to this substantial increase with a higher number of occupied nights and cruises.

In May, The Walt Disney Company’s second quarter earnings report showed second quarter 2022 revenue of $6.7 billion from Disney parks, experiences and products, indicating an increase of 3.5 billion in revenue compared to the same period in 2021.

As you can see, Q3 revenue increased from $6.7 billion to $7.4 billion, which is attributed to the continued popularity of Genie + Lightning Lane, which increased average ticket revenue. per capita as well as the higher volumes and price increases already mentioned. .

During the third quarter earnings call, Bob Chapek said that “Even our Genie product, which we launched less than a year ago, now about 50% of the people who walk through the door are buying up to this Genie product…which you can see in the results of our returns .”

Genie+ Disney
Picture: Disney

Many loyal fans recently slammed Disney for grabbing money saying they no longer choose to visit Walt Disney World. However, based on revenue and attendance figures, it doesn’t seem like that’s the general consensus. Genie + Lightning Lane has frustrated customers but 50% choose to buy it and the parks reservation system which has been another gripe for Disney fans is also here to stay and the parks are always full and the customers choose to spend, spend, spend!

Disney’s stock price is also up. We reported in June that the stock price had fallen from $185.15 in October 2021 to $94.22 at the close of business on June 14. Today (August 11) the stock price opened at $118.39, which is a huge increase from June.

TRON Lightcycle / Run, Disney
Picture: Disney

The Walt Disney Company’s full third quarter earnings report can be viewed here. Things are looking good for The Walt Disney Company as we head into 2022 and we expect this recovery to continue as demand for the parks continues and with TRON Lightcycle/Run set to open in the near future. , 2023 should certainly be an exceptional year.

Barbara M. Stokes