Bob Chapek Says Disney Parks Demand Still Outpaces Capacity and More During Q4 Earnings Call

The Walt Disney Company reported to its investors today about its latest earnings, as well as earnings for the past year.

©Disney

The numbers reported today confirmed the explosion of growth in Disney’s Parks revenue this year, and the continuing challenges the company is having in making its streaming service — Disney+ — profitable.

Parks Revenues Continue to Beat 2021 By a Mile

Disney reported revenue in its Disney Parks, Experiences and Products division at $7.4 billion for the quarter — an increase of 26% over the same period in 2021.

Disneyland Paris

Disney CEO Bob Chapek said that demand at Disney Parks continues to exceed capacity “on many days.” He touted the investments made to bring new attractions to Disney’s U.S. parks — such as the new Guardians of the Galaxy: Cosmic Rewind coaster at EPCOT — for driving the increased demand.

Disneyland

Chapek also thanked the Cast Members who “went above and beyond” during Hurricane Ian, which prompted closures and operational changes at Disney World in September. “I am so proud of how our team came together to support our guests, our neighbors, and each other,” Chapek said. Disney CFO McCarthy noted that the hurricane resulted in losses of $65 million.

Mickey’s Not So Scary Halloween Party at Disney World

Chapek noted that guests still want to celebrate at Disney Parks, evidenced by the sell-outs of special ticketed events like the Oogie Boogie Bash and Mickey’s Not-So-Scary Halloween Party. Chapek also stated that more than half of the dates for Mickey’s Very Merry Christmas Party have already sold out.

Plaza Point

McCarthy said that per capita spending in Disney’s domestic parks remains way open over pre-pandemic levels. Guests are spending 40% more in the parks than they did in 2019, which she attributed to the continued popularity of premium offerings such as Disney Genie+ and Individual Lightning Lanes.

Crowds in Disney World

Another thing up in the parks is international travelers — especially at Disney World. McCarthy said that international visitors in the fourth quarter were “roughly in line with pre-pandemic levels.”

Overall, Disney’s Numbers Show Revenue Growth

Disney is reporting revenue of $21.3 billion for the quarter, which is slightly down from the Q3 numbers, but up $2.8 billion from this period last year.

Animal Kingdom

“2022 was an important year of recovery coming out of the pandemic,” Chapek said. McCarthy told investors that further growth is expected during Fiscal Year 2023.

EPCOT International Gateway entrance

We currently expect the total company income in Fiscal Year 2023 and segment operating income to both grow at a high single percentage rate vs 2022,” McCarthy said.

Disney’s Streaming Business Continues to Record Losses

Chapek and McCarthy also spoke on the streaming business and reported that Disney+ added more than 12 million subscribers internationally, though there are still financial losses on the streaming side.

Obi-Wan Kenobi was a hit for Disney+

Shares of many media companies that have streaming services have been down for most of the year — including Disney’s stock, which is down 35% in 2022. The Wall Street Journal reports that investors are growing weary of waiting to see profits from streaming services.

The Santa Clauses TV Show ©Disney

“We expect Disney+ to achieve profitability in 2024, with losses starting to decline in the first quarter of 2023,” Chapek said. McCarthy noted that the launch of the ad-supported tier on Disney+ will likely not have impacts on its streaming divisions’ profitability until later in 2023.

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The post Bob Chapek Says Disney Parks Demand Still Outpaces Capacity and More During Q4 Earnings Call first appeared on the disney food blog.

source https://www.disneyfoodblog.com/2022/11/08/bob-chapek-says-disney-parks-demand-still-outpaces-capacity-and-more-during-q4-earnings-call/

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