The Walt Disney Company announced this week during the quarterly earnings call that it made $21.8 billion in revenue during the second quarter of 2023.
Disney’s fiscal second quarter ran from January 1 through April 1, 2023. The report was the first since Disney announced the new three-pronged business reorganization — Disney Entertainment, ESPN, and Disney Parks, Experiences, and Products — as Bob Iger attempts to streamline the media giant and reset its strategy. The company will begin reporting under the new structure later this year.
Iger Comments
CEO of The Walt Disney Company, Bob Iger remarked, “We’re pleased with our accomplishments this quarter, including the improved financial performance of our streaming business, which reflect the strategic changes we’ve been making throughout the company to realign Disney for sustained growth and success, from movies to television, to sports, news, and our theme parks, we continue to deliver for consumers, while establishing a more efficient, coordinated, and streamlined approach to our operations.”
Disney Parks Expansions
During the earnings call, Iger reported that The Walt Disney Company is “closely evaluating” growth and expansion opportunities throughout Disney Parks. Several expansions already in the works include:
- “Frozen” themed lands at Hong Kong Disneyland
- Tokyo DisneySea
- A “Tangled” ride and Avengers Campus at Disneyland Paris.
- New land (or lands) under consideration for beyond Big Thunder Mountain in Magic Kingdom at Walt Disney World.
- Considerations to replace Dinoland U.S.A. at Disney’s Animal Kingdom with “Moana” and “Zootopia” land.
Iger also referenced less literal expansion in terms of Annual Passholder benefits, including Passholders no longer needing Park Passes for certain dates in 2024.
Disney Parks, Experiences, and Products made up more than a third of the overall company revenue, making $7.78 billion.
Disney Parks Project Lower Revenue After 50th Anniversary
Disney is expecting the domestic Disney Parks (Disneyland Resort and Walt Disney World Resort) to have a lower Q3 2023 revenue than in Q3 2022, due to both the new Cast Member contract and the end of the 50th Anniversary celebration at Walt Disney World. While Disney 100 Years of Wonder has begun at Disneyland Resort and at Walt Disney World Resort, it isn’t having quite as big of an impact as the 50th Anniversary celebration.
Disney Streaming
The company’s quarterly results showed streaming losses, which narrowed as the company continues efforts to slash $5.5 billion in costs this year.
Despite Disney+ subscribers missing expectations and recent price hikes, streaming losses narrowed to $659 million in the second quarter — above consensus estimates of $850 million.
Future Outlook
Iger has consistently reaffirmed the company’s outlook of reaching streaming profitability by the year 2024, although it will be a bumpy road ahead.
Surprised that Disney Parks earned almost $8 Billion in quarterly revenue?