Summary
The Walt Disney Company reported strong revenue growth for the first quarter of fiscal year 2022, driven by a significant rebound in its Parks, Experiences and Products (DPEP) segment. Total revenues increased by 34% year-over-year to $21.8 billion. This growth was primarily fueled by the DPEP segment, which saw revenues more than double, benefiting from the easing of COVID-19 restrictions and increased attendance and spending at theme parks and resorts. The Disney Media and Entertainment Distribution (DMED) segment also experienced revenue growth, up 15% to $14.6 billion, largely due to increased subscription revenue from Disney+, Hulu, and ESPN+, as well as higher theatrical and TV/SVOD distribution revenues. Despite revenue growth in DMED, operating income for the segment declined due to higher programming and production costs. The company reported a substantial increase in net income attributable to Disney, rising to $1.1 billion from $17 million in the prior year, with diluted EPS from continuing operations at $0.63 compared to $0.02. Key factors impacting profitability included increased marketing costs and a significant non-cash loss related to an investment in DraftKings. The company reaffirmed its strong financial position and continued to invest in content and experiences, with projected content spend and capital expenditures for fiscal year 2022 indicating ongoing strategic investments.
Financial Highlights
50 data points| Revenue | $19.25B |
| SG&A Expenses | $3.77B |
| Operating Expenses | $17.65B |
| Operating Income | $3.70B |
| Interest Expense | $374.00M |
| Net Income | $470.00M |
| EPS (Basic) | $0.26 |
| EPS (Diluted) | $0.26 |
| Shares Outstanding (Basic) | 1.82B |
| Shares Outstanding (Diluted) | 1.83B |
Key Highlights
- 1Total revenues surged by 34% year-over-year to $21.8 billion, beating prior-year performance significantly.
- 2The Parks, Experiences and Products (DPEP) segment experienced a robust recovery, with revenues more than doubling to $7.2 billion, driven by increased park attendance and guest spending.
- 3Disney Media and Entertainment Distribution (DMED) revenues grew 15% to $14.6 billion, boosted by Direct-to-Consumer (DTC) subscription growth across Disney+, Hulu, and ESPN+.
- 4Net income attributable to Disney swung to a profit of $1.1 billion, or $0.63 per diluted share from continuing operations, a substantial improvement from $17 million in the prior year.
- 5The Direct-to-Consumer (DTC) segment, while growing revenue by 34% to $4.7 billion, saw its operating loss widen to $593 million from $466 million due to increased programming and production costs.
- 6The company reported a $432 million non-cash loss from the adjustment of its investment in DraftKings to fair value, impacting 'Other expense, net'.
- 7Content spend is projected to increase significantly in fiscal year 2022, with an expected spend of up to $33 billion, up from $25 billion in fiscal year 2021, reflecting continued investment in content for DTC services.