- Disney reported extremely strong results for calendar 2Q22, especially for its Parks business. Management explicitly said that they are seeing ZERO evidence of any consumer pullback or building recessionary behavior.
- Revenue at its domestic parks was $5.2B, up from $4.4B in the comparable period in 2019, and profits of $1.7B yielded a 31% profit margin (up from 27% in 2019). Those records were achieved with substantially lower international visitors, which typically stay longer and spend more. Additionally, Disney is still limiting admissions in order to maximize the guest experience and maximize yield. As such, admissions were below 2019.
- Disney had no update on its commitment to the theatrical window for films. We expect them to stick to a six-week exclusive. Its recent Pixar film Lightyear was released in theaters on June 17, it then transitioned to Disney+ on August 3, representing a six-week window.
