Disney Delivers Q4 Revenue, Subs Gains

Revenues at The Walt Disney Company were up 9 percent to $20.15 billion in Q4, with the company ending the period with a total of 164.2 million Disney+ subscribers, a 39 percent year-on-year gain.

Disney Media and Entertainment Distribution reported revenues of $12.7 billion, a 3 percent decline on the same period last year. At Disney Parks, Experiences and Products, revenues were up 36 percent to $7.4 billion. Net profit at the company was flat on last year’s results, rising by 1 percent to $162 million.

“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 CEO Bob Chapek. “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.”

The company’s linear networks reported revenues that were 5 percent down to $6.3 billion, with U.S. channels down 2 percent and international down 18 percent.

Direct-to-consumer revenues rose by 8 percent to $4.9 billion. Disney+ had 46.4 million U.S. and Canada customers at the end of the quarter, with 56.5 million internationally, excluding Disney+ Hotstar. Disney+ Hotstar counted 61.3 million subs, a 42 percent gain. ESPN+ ended the quarter with 24.3 million subs, a 42 percent increase. Total Hulu customers rose 8 percent to 47.2 million.

Content sales/licensing revenues were down 15 percent to $1.7 billion.