Hello everyone. We end the week with one of the more anticipated earnings releases of the current cycle: Disney. Let’s jump right in.

Disney 3Q23 Earnings

This was not the disaster of a quarter that some were expecting. One could go so far as to say it was an OK quarter, although there are caveats found with that statement.

There were several moving parts found in Disney’s earnings. Expectations of this release being a disaster were never realistic to begin with. More on that shortly.

The moving parts:

Linear Networks (cable/broadcast) results weren’t great with revenue down 7% and operating income down 23%. The weak numbers were found in both Domestic and International.
Parks & Experiences benefited from an easy year-over-year compare for Shanghai Disney Resort (related to COVID closures). Domestic results were on the weak side with just 4% revenue growth. Lower volumes at Disney World were partially offset by Disneyland results that were modestly better year-over-year. The numbers add credibility to the WSJ’s article about fewer visitors at Disney World.

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