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Dec 31, 2022

Disney Q1 2023 Earnings Report

Disney's first quarter of fiscal year 2023 earnings were reported, showing revenue growth and a transformation strategy.

Key Takeaways

The Walt Disney Company reported an 8% increase in revenues for the first quarter of fiscal year 2023. Diluted earnings per share (EPS) from continuing operations increased, while diluted EPS excluding certain items decreased. The company is embarking on a significant transformation to maximize the potential of its creative teams and brands, while also reducing expenses.

Revenues for the quarter grew by 8%.

Diluted earnings per share (EPS) from continuing operations increased to $0.70 from $0.63 in the prior-year quarter.

Excluding certain items, diluted EPS for the quarter decreased to $0.99 from $1.06 in the prior-year quarter.

The company is undertaking a significant transformation to maximize creative potential and drive sustained growth.

Total Revenue
$23.5B
Previous year: $21.8B
+7.8%
EPS
$0.99
Previous year: $1.06
-6.6%
Disney+ Paid ARMPU
$5.77
Previous year: $6.33
-8.8%
ESPN+ Paid Subscribers
24.9M
Previous year: 21.3M
+16.9%
Hulu Paid Subscribers
48M
Previous year: 45.3M
+6.0%
Gross Profit
$7.13B
Previous year: $7.25B
-1.7%
Cash and Equivalents
$8.47B
Previous year: $14.4B
-41.4%
Free Cash Flow
-$2.16B
Previous year: -$1.19B
+81.1%
Total Assets
$202B
Previous year: $203B
-0.6%

Disney

Disney

Disney Revenue by Geographic Location

Forward Guidance

The company is embarking on a significant transformation, one that will maximize the potential of our world-class creative teams and our unparalleled brands and franchises.

Positive Outlook

  • Reshaping the company around creativity.
  • Reducing expenses.
  • Leading to sustained growth.
  • Profitability for the streaming business.
  • Better position to weather future disruption and global economic challenges.

Challenges Ahead

  • Further deterioration in domestic and global economic conditions.
  • Deterioration in or pressures from competitive conditions, including competition to create or acquire content and competition for talent.
  • Consumer preferences and acceptance of our content, offerings, pricing model and price increases and the market for advertising sales on our DTC services and linear networks.
  • Health concerns and their impact on our businesses and productions.
  • International, regulatory, legal, political, or military developments.

Revenue & Expenses

Visualization of income flow from segment revenue to net income