Summary
The Walt Disney Company's (DIS) Q1 2023 earnings report shows a solid top-line performance with total revenues increasing by 8% year-over-year to $23.5 billion. This growth was driven primarily by a strong rebound in the Parks, Experiences and Products (DPEP) segment, which saw a 21% revenue increase due to higher attendance and guest spending across its theme parks and resorts. The Disney Media and Entertainment Distribution (DMED) segment experienced a more modest 1% revenue growth, with its Direct-to-Consumer (DTC) business showing an increase in subscribers and revenue, though still operating at a significant loss. Net income attributable to Disney shareholders rose by 16% to $1.3 billion, resulting in diluted earnings per share (EPS) from continuing operations of $0.70, up from $0.63 in the prior year. This improvement was supported by the DPEP segment's robust performance and a reduction in investment losses, notably a smaller loss from DraftKings compared to the previous year. However, the DMED segment's operating income declined significantly, primarily due to increased programming and production costs for DTC services and a drop in advertising revenue. The company is also undergoing a leadership transition with the return of Bob Iger, signaling potential strategic shifts and restructuring efforts ahead.
Financial Highlights
49 data points| Revenue | $23.51B |
| SG&A Expenses | $3.83B |
| Operating Expenses | $21.52B |
| Operating Income | $3.04B |
| Interest Expense | $465.00M |
| Net Income | $1.28B |
| EPS (Basic) | $0.70 |
| EPS (Diluted) | $0.70 |
| Shares Outstanding (Basic) | 1.82B |
| Shares Outstanding (Diluted) | 1.83B |
Key Highlights
- 1Total revenues increased 8% to $23.5 billion, driven by strong performance in Parks, Experiences and Products (DPEP).
- 2DPEP segment revenue grew 21% to $8.7 billion, with Parks, Experiences and Products seeing a 23% increase in admissions revenue and higher guest spending.
- 3Disney Media and Entertainment Distribution (DMED) segment revenue grew 1% to $14.8 billion, with Direct-to-Consumer (DTC) revenue up 13% to $5.3 billion.
- 4Net income attributable to Disney increased 16% to $1.3 billion, and diluted EPS from continuing operations rose to $0.70 from $0.63.
- 5The Direct-to-Consumer (DTC) business, encompassing Disney+, Hulu, and ESPN+, saw total paid subscribers reach 161.8 million for Disney+, 24.9 million for ESPN+, and 48.0 million for Hulu, though the segment continues to operate at a significant loss.
- 6The company incurred $69 million in restructuring and impairment charges related to exiting its business in Russia.
- 7Cash used in operations significantly increased to $974 million, compared to $209 million in the prior year, partly due to collateral payments related to hedging programs.