How Much Does Disneyland Make and Spend in a Year? | Gross Profit Explained
The Walt Disney Company (DIS) is a global entertainment conglomerate that owns and manages theme parks, resorts, a cruise line, broadcast television networks, and related items. The company also creates live entertainment events and produces and streams a wide range of film and television entertainment content through its new digital content streaming services.
Disney is up against a slew of competitors, including Paramount Global (PARA), Comcast Corp. (CMCSA), Sony Group Corp. (SONY), AT&T Inc. (T), Netflix Inc. (NFLX), Apple Inc. (AAPL), and Amazon.com Inc. (AMZN); as well as smaller niche rivals like theme park and resort companies Six Flags Entertainment Corp. (SIX), SeaWorld Entertainment Inc. (SEAS), and Hilton Worldwide Holdings Inc. (HLT).
Disney is a multibillion-dollar global entertainment business that owns and manages theme parks, resorts, broadcast networks, and television and film streaming services.
Although Disney’s Linear Networks provides the most significant income, its Parks, Experiences, and Products division rebounds from the COVID-19 pandemic and is now profitable.
Disney’s domestic theme parks and resorts have progressively reopened and are no longer subject to mandatory capacity limits.
Mike White, a Disney executive, was recently named to supervise the company’s metaverse strategy implementation.
Disney+ has approximately 130 million subscribers at the end of the first quarter (Q1) of the fiscal year (FY) 2022, rising 36.8% year over year (YoY).
Financial Statements for Disney
Disney released financial figures for the first quarter (Q1) of its 2022 fiscal year (FY), which ended on January 1, 2022, in early February 2022. The corporation earned $1.2 billion in net profits, 64 times higher than the previous quarter. Year-over-year (YOY) revenue increased 34.3 percent to $21.8 billion. For each business segment, Disney utilizes operating income as a profit statistic. In fiscal Q1, segment operating income increased 144.6 percent to $3.3 billion.
In their financial report, Disney addressed the adverse effects of the COVID-19 epidemic since early 2020. Those effects have had the most significant influence on its Parks, Experiences, and Products sector. Disney’s theme parks and resorts had to close, and cruise ship sailings and guided tours had to be halted. However, the firm has gradually reopened its theme parks, albeit at a reduced capacity, since May 2020.
Most of Disney’s domestic parks and experiences are now open to the public without significant capacity limits. Its cruises and guided tours have also begun to operate again. Disruptions in film and television production have also resulted in less content for the company’s media and entertainment division.
Segments of Disney’s Business
Disney realigned its reportable business segments in the first quarter of the fiscal year 2021. Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences, and Products are the company’s two main business sectors (DPEP). Linear Networks, Direct-to-Consumer, and Content Sales/Licensing and Other are the three components of the first of these categories, which includes Disney’s media and entertainment operations.
Disney provides a breakdown of revenue and operating profits for each of these segments. Media Networks, Parks, Experiences and Products, Studio Entertainment, and Direct-to-Consumer & International were the company’s four core business sectors before this restructuring.
Linear Networks (DMED)
Linear Networks is Disney’s domestic and worldwide cable network division, including Disney, ESPN, National Geographic, and the ABC, broadcast television network and eight domestic television stations, and a 50 percent equity stake in A+E Television Networks.
DMED stands for Direct-to-Consumer Marketing.
Disney’s Direct-to-Consumer (DTC) segment includes Disney+, Disney+ Hotstar, ESPN+, Hulu, and Star+, among other streaming services.
In Q1 FY 2022, the DTC segment generated $4.7 billion in revenue, increasing 33.8 percent over the same three-month period. The segment’s operating loss increased to $593 million from $466 million in the last quarter. The direct-to-consumer component contributes 21% of overall sales. 8
DMED: Content Sales/Licensing and Other DMED: Content Sales/Licensing and Other DMED: Content Sales/L
Content Sales/Licensing and Other is Disney’s division that sells film and television content to third-party television and subscription video-on-demand (VOD) services. T
he segment also includes theatrical distribution, home entertainment distribution, such as DVD and Blu-ray, music distribution, staging and licensing of live entertainment events on Broadway and around the world, post-production services through Industrial Light & Magic and Skywalker Sound, and a 30% stake in Tata Sky Ltd., an India-based operator of a direct-to-home satellite distribution platform.
In Q1 FY 2022, the Content Sales/Licensing and Other segment generated $2.4 billion in sales, up 42.9 percent from the previous quarter. The part reported a $98 million operational loss, a considerable drop from the $188 million operating profit reported before. Content Sales/Licensing and Other section generate 11% of overall revenue.
Parks, experiences, and merchandise from Disney (DPEP)
The theme parks and resorts in Florida, California, Hawaii, Paris, Hong Kong, and Shanghai make up Disney’s Parks, Experiences, and Products sector. There’s also a cruise line and a vacation club. Theme park admissions, food, beverages, various products, resort and vacation stays, and royalties from licensing intellectual assets are the primary sources of revenue.
The Parks, Experiences, and Products segment brought in $7.2 billion in Q1 FY 2022, up 101.6 percent from the previous quarter. The division generated $2.5 billion in operating profits, a significant improvement above the $119 million operating deficit in Q1 FY 2021. The division generates approximately 33% of Disney’s total revenue and 62% of operating profitability.
Intersegment transactions are included in the segment revenue and operating income data in the above breakdowns and pie charts.
Recent Disney Developments
According to experts, Disney has hired one of its executives to manage its metaverse strategy on February 15, 2022. Mike White, an official in the company’s Media and Entertainment Distribution department, has been named senior vice president of Next Generation Storytelling and Consumer Experiences by Chief Executive Officer (CEO) Bob Chapek. White will design the customer experience for Disney’s upcoming metaverse in his new post.
The outstanding performance of Disney’s DTC business was emphasized in the company’s fiscal Q1 earnings report, which was released on February 9, 2022. Total subscriptions to Disney+, ESPN+, and Hulu increased 34.2 percent year over year to 196.4 million. At the end of the quarter, Disney+ had 129.8 million subscribers, up 36.8% year over year.