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Apr 02, 2022

Disney Q2 2022 Earnings Report

Disney's second quarter results for fiscal year 2022 showed revenue growth and increased streaming subscriptions.

Key Takeaways

Disney's Q2 2022 earnings revealed a 23% increase in revenue compared to the prior-year quarter, driven by strong performance in domestic parks and the continued growth of streaming services, which now exceed 205 million subscriptions across all DTC offerings. Diluted EPS increased to $1.08 from $0.79 in the prior-year quarter, excluding certain items.

Revenues for the quarter grew by 23%, despite a $1.0 billion reduction due to early termination of license agreements.

Diluted earnings per share (EPS) decreased to $0.26 from $0.50 in the prior-year quarter.

Excluding certain items, diluted EPS for the quarter increased to $1.08 from $0.79 in the prior-year quarter.

Disney+ subscribers increased by 7.9 million in the quarter, with total subscriptions across all DTC offerings exceeding 205 million.

Total Revenue
$19.2B
Previous year: $15.6B
+23.3%
EPS
$1.08
Previous year: $0.79
+36.7%
Disney+ Paid ARMPU
$4.35
Previous year: $3.99
+9.0%
ESPN+ Paid Subscribers
22.3M
Previous year: 13.8M
+61.6%
Hulu Paid Subscribers
45.6M
Previous year: 41.6M
+9.6%
Gross Profit
$6.66B
Previous year: $5.83B
+14.1%
Cash and Equivalents
$13.3B
Previous year: $15.9B
-16.5%
Free Cash Flow
$686M
Previous year: $623M
+10.1%
Total Assets
$202B
Previous year: $200B
+1.1%

Disney

Disney

Disney Revenue by Geographic Location

Forward Guidance

The company did not provide specific financial guidance for the next quarter or fiscal year in this earnings report.

Positive Outlook

  • Strong performance at domestic parks and experiences businesses.
  • Continued growth of streaming services, particularly Disney+.
  • Increase in guest spending at parks and resorts.
  • Growth in merchandise licensing.
  • Successful resumption of film and television productions.

Challenges Ahead

  • Reduction in revenue due to early termination of license agreements.
  • Decrease in diluted earnings per share (EPS).
  • Higher losses at Disney+ and ESPN+.
  • Lower operating income at Hulu.
  • Decrease in TV/SVOD distribution results.

Revenue & Expenses

Visualization of income flow from segment revenue to net income