Disney Struggles with its Domestic Parks in Latest Report

Fourth quarter earnings AND fiscal year earnings are IN! Disney just posted its full report, and we have all the numbers and details for you right here. Unfortunately, domestic parks are not doing too great.

4th Quarter Earnings

For the fourth quarter, Disney posted $21.24 billion in revenue ($21.33 billion estimated). Revenues for the quarter grew 5% compared to the prior-year quarter.

This was in large part due to Disney+ adding nearly 7 million core subscribers in the fourth quarter. Key streaming content in the quarter included theatrical titles Elemental, Little Mermaid and Guardians of the Galaxy Vol. 3. Original series Ahsoka and the Korean original series Moving also contributed.

Disney added 7 million streamers in the fourth quarter.

Another key factor was the Parks segment. While international parks did better than domestic parks, operating income increased 31% compared to the prior-year quarter. Domestic Disney Parks and Experiences increased income by 9% for a total of just a little over $67 million vs last year.

Mr. Iger stated that the attendance and spending at Walt Disney World weren’t as strong. The company blames that on the downturn of the 50th anniversary, inflation, and the closure of the Galactic Starcruiser for its lower results.

Fiscal Year 2023

For Fiscal Year 2023, Disney reported a revenue of $8.8 billion. Looking at Fiscal Year 2022 ($8.2B) that’s an increase of about 6 billion in revenue. Wow!

Again, a large part of that was due to growth on Disney Cruise Line, the opening of The Villas at Disneyland Hotel, and international parks. Disney did have to combat lower results at domestic parks and resorts, most notably in Florida.

Bob Iger noted that there will be four key building opportunities for The Walt Disney Company’s success:

achieving significant and sustained profitability in the streaming business
building ESPN into the preeminent digital sports platform
improving the output and economics of its film studios
turbocharging growth in our parks and experiences business (and that includes the promised 60 billion investment)

To read the report in its entirety, click HERE.