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“2022 was a strong year for Disney, with some of our best storytelling yet, record results at our Parks,
Experiences and Products segment, and outstanding subscriber growth at our direct-to-consumer services, which
added nearly 57 million subscriptions this year for a total of more than 235 million,” said Bob Chapek, Chief
Executive Officer, The Walt Disney Company. “Our fourth quarter saw strong subscription growth with the
addition of 14.6 million total subscriptions, including 12.1 million Disney+ subscribers. The rapid growth of
Disney+ in just three years since launch is a direct result of our strategic decision to invest heavily in creating
incredible content and rolling out the service internationally, and we expect our DTC operating losses to narrow
going forward and that Disney+ will still achieve profitability in fiscal 2024, assuming we do not see a meaningful
shift in the economic climate. By realigning our costs and realizing the benefits of price increases and our Disney+
ad-supported tier coming December 8, we believe we will be on the path to achieve a profitable streaming business
that will drive continued growth and generate shareholder value long into the future. And as we embark on Disney’s
second century in 2023, I am filled with optimism that this iconic company’s best days still lie ahead.”
Disney Parks, Experiences and Products
Disney Parks, Experiences and Products revenues for the quarter increased to $7.4 billion compared
to $5.5 billion in the prior-year quarter. Segment operating income increased $0.9 billion to $1.5 billion
compared to $0.6 billion in the prior-year quarter. Higher operating results for the quarter reflected
increases at our domestic and international parks and experiences businesses and, to a lesser extent, our
merchandise licensing business.
Operating income growth at our domestic parks and experiences was due to higher volumes and
increased guest spending, partially offset by cost inflation, higher operations support costs and costs for
new guest offerings. Higher volumes were due to increases in attendance, cruise ship sailings, which
included a benefit from the July 2022 launch of the Disney Wish, and occupied room nights. Cruise ships
were operating during the entire current quarter while sailings resumed during the prior-year quarter and
operated at reduced capacities. Guest spending growth was due to an increase in average per capita ticket
revenue driven by the introduction of Genie+ and Lightning Lane in the first quarter of the current fiscal
year.
Improved results at our international parks and resorts were due to growth at Disneyland Paris,
partially offset by a decrease at Shanghai Disney Resort. Higher operating results at Disneyland Paris were
due to an increase in volumes and higher average ticket prices, partially offset by higher operations
support costs. Higher volumes were due to increases in attendance and occupied room nights. The
decrease at Shanghai Disney Resort was due to lower average ticket prices driven by a higher mix of
annual passholder attendees in the current quarter as a result of COVID-19-related travel restrictions.
Growth at our merchandise licensing business was primarily due to higher sales of merchandise based
on Mickey and Friends, Encanto and Toy Story.
The following table presents supplemental revenue and operating income (loss) detail for the Disney
Parks, Experiences and Products segment:
thewaltdisneycompany.com
