Claiming that business in the three-month period shows that the company is in a league of its own, the Walt Disney Company has produced a strong set of second quarter results with particular emphasis on how streaming services are steaming on.
For the quarter ended 2 April 2022, revenues for the quarter and six months grew 23% and 29%, respectively, to $19.249 billion and $41.068 billion. Income from continuing operations before income taxes was $1.102 billion for the quarter, slipping back 10% annually, and $2.79 billion, more than double the figure of a year ago, for the six month period. Quarterly net income was $470 million, tumbling 48% year-on-year, and $1.622 billion over the course of the six months, yearly growth of 72%.
Looking at individual business lines, revenues for the quarter at Linear Networks increased 5% to $7.1 billion, even though operating income decreased 1% to $2.8 billion. US channels revenue for the quarter increased annually 8% to $5.8 billion, and operating income increased 3% to $2.3 billion. The increase in operating income was due to higher operating income at Broadcasting, partially offset by lower operating income at Cable.
However, international channels revenues for the quarter decreased 3% to $1.3 billion and operating income decreased 30% to $200 million. The decrease in operating income was due to lower affiliate revenue and an increase in programming and production costs, partially offset by advertising revenue growth. Lower affiliate revenue reflected the impact of channel closures and an unfavourable foreign exchange impact.
Yet as ever, the focus of the industry was on Direct-to-Consumer (DTC). The sector’s revenues for the quarter increased 23% compared with Q2 2021 to $4.9 billion even as operating loss increased $0.6 billion to $0.9 billion. The increase in operating loss was due to higher losses at Disney+ and ESPN+ and lower operating income at Hulu.
Lower results at Disney+ reflected higher programming and production, marketing and technology costs, partially offset by an increase in subscription revenue. Higher subscription revenue was due to subscriber growth and increases in retail pricing. The increases in costs and subscribers reflected growth in existing markets and, to a lesser extent, expansion to new markets.
Disney+ ended Q2 2022 with 137.7 million subscribers with customers taking Disney+ Hotstar in India leaping 42% to total 50 million. US and Canada subs totaled 44.4 million, up 19% compared with a year ago. Non Disney+ Hotstar international subs finished grew 39% compared with a year ago to total 43.2 million. Total ESPN+ subs were 22.3 million, soaring 62% annually, while total Hulu subs grew 10% annually to 45.6 million.
“Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services—with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million—once again proved that we are in a league of our own,” said The Walt Disney Company chief executive officer Bob Chapek, commenting on the Q2 results . “As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected, and magical Disney universe for families and fans around the world.”
Looking at individual business lines, revenues for the quarter at Linear Networks increased 5% to $7.1 billion, even though operating income decreased 1% to $2.8 billion. US channels revenue for the quarter increased annually 8% to $5.8 billion, and operating income increased 3% to $2.3 billion. The increase in operating income was due to higher operating income at Broadcasting, partially offset by lower operating income at Cable.
However, international channels revenues for the quarter decreased 3% to $1.3 billion and operating income decreased 30% to $200 million. The decrease in operating income was due to lower affiliate revenue and an increase in programming and production costs, partially offset by advertising revenue growth. Lower affiliate revenue reflected the impact of channel closures and an unfavourable foreign exchange impact.
Yet as ever, the focus of the industry was on Direct-to-Consumer (DTC). The sector’s revenues for the quarter increased 23% compared with Q2 2021 to $4.9 billion even as operating loss increased $0.6 billion to $0.9 billion. The increase in operating loss was due to higher losses at Disney+ and ESPN+ and lower operating income at Hulu.
Lower results at Disney+ reflected higher programming and production, marketing and technology costs, partially offset by an increase in subscription revenue. Higher subscription revenue was due to subscriber growth and increases in retail pricing. The increases in costs and subscribers reflected growth in existing markets and, to a lesser extent, expansion to new markets.
Disney+ ended Q2 2022 with 137.7 million subscribers with customers taking Disney+ Hotstar in India leaping 42% to total 50 million. US and Canada subs totaled 44.4 million, up 19% compared with a year ago. Non Disney+ Hotstar international subs finished grew 39% compared with a year ago to total 43.2 million. Total ESPN+ subs were 22.3 million, soaring 62% annually, while total Hulu subs grew 10% annually to 45.6 million.
“Our strong results in the second quarter, including fantastic performance at our domestic parks and continued growth of our streaming services—with 7.9 million Disney+ subscribers added in the quarter and total subscriptions across all our DTC offerings exceeding 205 million—once again proved that we are in a league of our own,” said The Walt Disney Company chief executive officer Bob Chapek, commenting on the Q2 results . “As we look ahead to Disney’s second century, I am confident we will continue to transform entertainment by combining extraordinary storytelling with innovative technology to create an even larger, more connected, and magical Disney universe for families and fans around the world.”
