Walt Disney Co (NYSE:DIS) reported second-quarter financial results after the market close Wednesday. Here are the key highlights.
What Happened: Disney reported revenue of $19.3 billion for the second quarter, which beat a consensus estimate of $18.9 billion, according to data from Benzinga Pro. Disney reported earnings per share of $1.08, beating estimates of $1.07.
“Out strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services – with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million – once again proved that we are in a league of our own,” CEO Bob Chapek said.
See Also: Here's How Disney Looks Heading Into Q2 Earnings
Direct-to-Consumer Growth: Disney’s Media and Entertainment segment generated revenue of $13.6 billion, up 9% year-over-year. Direct-to-consumer revenue within the segment hit $4.9 billion and was up 23% year-over-year.
Disney reported 44.4 million domestic Disney+ subscribers, up 19% yar-over-year. International Disney+ subscribers excluding Hotstar hit 43.2 million in the second quarter, up 39%. Total Disney+ subscribers including Hotstar hit 137.7 million in the quarter. Disney reported 129.8 million Disney+ subscribers at the end of the first quarter.
The company’s ESPN+ sports based streaming platform reported 22.3 million subscribers, up 62% year-over-year. Hulu had 45.6 million subscribers at the end of the quarter, up 10%.
Disney reported gains for Disney+, ESPN+ and Hulu for average revenue per user in the quarter; ARPU of $4.35 was up 9% for all users.
Related Link: Move Over Disney+: Why Theme Parks Could Be Disney's Real Growth Driver In 2022
Parks Segment Continues Strength: Disney reported revenue for its Parks, Experiences And Events segment of $6.65 billion, up 110% year-over-year.
Operating income for the Parks segment totaled $1.8 billion, an improvement from the loss of $406 million in last year’s second quarter. Operating income for the Parks segment also helped offset a 32% year-over-year decline in the operating income for the Media segment at $1.9 billion.
Domestic Parks had revenue of $4.9 billion, up 188% year-over-year. International parks hit revenue of $574 million, up 119% year-over-year. The company’s consumer products segment generated revenue of $1.2 billion in the quarter, in line with the comparable year.
Disney said it had higher guest counts and increased guest spending across its park segment. The company also had more cruise ship sailings for its cruise line business.
“The increase in average per capita ticket revenue was due to a favorable attendance mix and the introduction of Genie+ and Lightning Lane in the first quarter of the current fiscal year,” the company said.
Disneyland was closed in last year’s second quarter and Walt Disney World was open at reduced capacity due to COVID-19 restrictions. This year’s second quarter saw several international parks closed for more days than the comparable period including Hong Kong Disneyland Resort and Shanghai Disney Resort.
DIS Price Action: Disney shares are up 1.5% to $106.71 in after-hours trading. Shares have traded between $106.14 and $187.57 over the last 52 weeks.
