The following table summarizes the first quarter results for fiscal 2022 and 2021 (in millions, except per share amounts): Income from continuing operations before income taxes, Diluted EPS from continuing operations(2), Cash (used in) provided by continuing operations. Direct-to-Consumer revenues for the quarter increased 34% to $4.7 billion and operating loss increased 27% to $0.6 billion. The terms Company, we, and our are used in this report to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted. Description. The increase in net income from continuing operations attributable to noncontrolling interests was driven by lower losses at Hong Kong Disneyland Resort and Shanghai Disney Resort, partially offset by a higher loss at our DTC sports business. The decrease in unit sales of new release titles was due to fewer titles available for release in the current quarter. Net cash flow can be defined as the total change in cash for the company over the given period. The Company believes that providing diluted EPS exclusive of certain items impacting comparability is useful to investors, particularly where the impact of the excluded items is significant in relation to reported earnings and because the measure allows for comparability between periods of the operating performance of the Companys business and allows investors to evaluate the impact of these items separately. In the U.S., Disney+, ESPN+ and Hulu SVOD Only are each offered as a standalone service or as a package that includes all three services (the SVOD Bundle). Walt Disney Co. annual balance sheet for DIS company financials. Net income attributable to noncontrolling interests was as follows (in millions): Net income from continuing operations attributable to noncontrolling interests. A Hulu SVOD Only subscriber that adds Disney+ is counted as one paid subscriber for each of the Hulu SVOD Only and Disney+ offerings. In conjunction with this release, The Walt Disney Company will host a conference call today, February 9, 2022, at 4:30 PM EST/1:30 PM PST via a live Webcast. The following table reconciles reported diluted EPS from continuing operations to diluted EPS excluding certain items for the fourth quarter: Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs(4). Net of noncontrolling interest share, where applicable. . FOR IMMEDIATE RELEASE May 10, 2023 THE WALT DISNEY COMPANY REPORTSSECOND QUARTER AND SIX MONTHS EARNINGS FOR FISCAL 2023 BURBANK, Calif. - The Walt Disney Company today reported earnings for its second quarter ended April 1, 2023. Tax benefit/expense is determined using the tax rate applicable to the individual item. The increase in programming and production costs was driven by higher costs for the College Football Playoffs (CFP), NFL and MLB programming and an increase in sports production costs due to the cancellation of events in the prior-year quarter. Subscribers include those who receive a service through wholesale arrangements including those for which we receive a fee for the distribution of the service to each subscriber of an existing content distribution tier. . Currency in USD Annual Disney annual cash flow from financial activities for 2022 was $-4.729B, a 7.84% increase from 2021. Weve had a very strong start to the fiscal year, with a significant rise in earnings per share, record revenue and operating income at our domestic parks and resorts, the launch of a new franchise with Encanto, and a significant increase in total subscriptions across our streaming portfolio to 196.4 million, including 11.8 million Disney+ subscribers added in the first quarter, said Bob Chapek, Chief Executive Officer, The Walt Disney Company. Disney annual cash flow from operating activities for 2020 was $7.616B, a 27.27% increase from 2019. That is a $2.7 billion swing in three months. Tax benefit/expense is determined using the tax rate applicable to the individual item. Starting in December 2021, revenue for the new Hulu Live TV + SVOD offering is allocated to the SVOD services based on the wholesale price of the SVOD Bundle. Higher effective tax rates on foreign earnings in both the current and prior-year quarters reflected the impact of foreign losses and, to a lesser extent, foreign tax credits for which we were unable to recognize a tax benefit. 2024. The following table presents supplemental revenue and operating income (loss) detail for the Disney Parks, Experiences and Products segment: Supplemental operating income (loss) detail. Walt Disney (DIS 0.25%) enters the final seven months of 2023 as sleepy as one of Snow White's housemates. Period . Projected. For the prior-year quarter, other expense, net was due to the DraftKings loss ($13 million). Disney Parks, Experiences and Products revenues for the quarter increased to $7.2 billion compared to $3.6 billion in the prior-year quarter. The most significant impact was on the timing of Indian Premier League cricket matches, as there were no matches in the current quarter compared to 18 matches in the prior-year quarter. Fiscal year is November - October. Titles released in the quarter included West Side Story, Encanto, The Kings Man, Eternals, Nightmare Alley and The Last Duel. Disney annual cash flow from financial activities for 2020 was $8.48B, a 1927.59% decline from 2019. 2023. Linear Networks revenues for the quarter were essentially flat to the prior-year quarter at $7.7 billion, and operating income decreased 13% to $1.5 billion. The most comparable GAAP measures are diluted EPS from continuing operations, income from continuing operations before income taxes, and cash provided by continuing operations, respectively. The increase in impressions reflected more units delivered and higher average viewership. In the prior-year quarter, the Company recognized a non-cash gain to adjust its investment in fuboTV, Inc. (fuboTV) to fair value. The effective income tax rate was as follows: Income tax expense on continuing operations, Effective income tax rate continuing operations. Revenue is allocated to each service based on the relative retail price of each service on a standalone basis. DIS | Walt Disney Co. Oct 1, 2022. Improved results at our international parks and resorts were due to growth at Disneyland Paris, partially offset by a decrease at Shanghai Disney Resort. The decrease in costs for MLB programming was due to airing 16 games in the current quarter under our new contract compared to 45 games in the prior-year quarter. Disney annual cash flow from financial activities for 2021 was $-4.385B, a 151.71% decline from 2020. Free Cash Flow per Share Disney Free Cash Flow component correlations Click cells to compare fundamentals About Disney Financial Statements There are typically three primary documents that fall into the category of financial statements. Disney+ is available in more than 80 countries and territories outside the U.S. and Canada. Higher subscription revenue was due to subscriber growth and increases in retail pricing. Includes the Disney+ service outside the U.S. and Canada and the Star+ service in Latin America. Higher volumes were due to increases in attendance, cruise ship sailings, which included a benefit from the July 2022 launch of the Disney Wish, and occupied room nights. Net of noncontrolling interest share, where applicable. Cash Flow Statement ( Annual) Financials in millions USD. The decrease in interest expense was primarily due to lower average debt balances and higher capitalized interest. Cash Flow Advantage. For the prior year, intangible asset amortization was $1,757 million, step-up amortization was $646 million and amortization of intangible assets related to TFCF equity investees was $15 million. The improvement at ESPN+ was primarily due to an increase in subscription revenue due to subscriber growth, partially offset by a decrease in income from Ultimate Fighting Championship pay-per-view events due to lower average buys per event. Advertising revenue growth was due to higher impressions, partially offset by a decrease in rates. The average monthly revenue per paid subscriber for the Hulu SVOD Only service decreased from $13.51 to $12.96 due to lower per-subscriber advertising revenue and a higher mix of subscribers to the SVOD Bundle, partially offset by an increase in retail pricing. our operations, business plans or profitability; the performance of the Companys content; our ability to create or obtain desirable content at or under the value we assign the content; performance of some or all Company businesses either directly or through their impact on those who distribute our products. Management believes that information about free cash flow provides investors with an important perspective on the cash available to service debt obligations, make strategic acquisitions and investments and pay dividends or repurchase shares. The Walt Disney Company (NYSE: DIS) today reported earnings for its first fiscal quarter ended January 1, 2022. The most comparable GAAP measures are diluted EPS from continuing operations, income from continuing operations before income taxes, and cash provided by continuing operations, respectively. The following tables present additional information about our Disney+, ESPN+ and Hulu Direct-to-Consumer (DTC) product offerings(1). To say the least, the market is not pleased with its. Export or download to CSV or Excel file. CONDENSED CONSOLIDATED STATEMENTS OF INCOME, (unaudited; in millions, except per share data), Loss from discontinued operations, net of income tax benefit of $14 and $4, respectively, Net income attributable to The Walt Disney Company (Disney). The increase in operating income reflected higher results at Cable and a modest increase at Broadcasting. In general, wholesale arrangements have a lower average monthly revenue per paid subscriber than subscribers that we acquire directly or through third-party platforms. Reflects subscribers for which we recognized subscription revenue. For the prior-year quarter, intangible asset amortization was $429 million, step-up amortization was $159 million and amortization of intangible assets related to TFCF equity investees was $4 million. The increase in programming and production costs was due to more content provided on the service and an increase in subscriber-based fees for programming the Live TV service. . Charges for the current year were due to the impairment of an intangible and other assets related to our businesses in Russia. For the current year, other expense, net was due to the DraftKings loss ($663 million). Revenue is allocated to each service based on the relative retail price of each service on a standalone basis. 2027. Q1 FY 2022 Earnings Non-GAAP EPS: US$1.06 (beat by US$0.43) Revenue: US$21.81b (beat by US$860m) Revenue Growth: +34% Y/Y Net income: US$1.15b Highlights Parks, Experiences and consumer products. Depreciation expense was as follows (in millions): DTC PRODUCT DESCRIPTIONS AND KEY DEFINITIONS. To access the Webcast go to www.disney.com/investors. The decrease in programming and production costs was due to lower costs for sports programming and, to a lesser extent, a lower cost mix of non-sports programming. 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. Our fourth quarter saw strong subscription growth with the addition of 14.6 million total subscriptions, including 12.1 million Disney+ subscribers. Management does not undertake any obligation to update these statements. The decrease in interest income, investment income (loss) and other was due to lower investment gains, partially offset by a favorable comparison of pension and postretirement benefit costs, other than service cost, which was a net benefit in the current quarter and an expense in the prior-year quarter. Investments in parks, resorts and other property were as follows (in millions): Total Disney Parks, Experiences and Products, Total investments in parks, resorts and other property. Growth at Linear Networks reflected higher domestic Broadcasting and Cable results, partially offset by lower results internationally. The following are reconciliations of income from continuing operations before income taxes to total segment operating income and revenues to segment revenues (in millions): Corporate and unallocated shared expenses, Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs. Average monthly revenue per paid subscriber is calculated based on the average of the monthly average paid subscribers for each month in the period. In general, wholesale arrangements have a lower average monthly revenue per paid subscriber than subscribers that we acquire directly or through third party platforms. The average monthly revenue per paid subscriber for domestic Disney+ decreased from $6.81 to $6.10 due to a higher mix of subscribers to multi-product offerings, partially offset by an increase in retail pricing. Results at Disney Parks, Experiences and Products in the current year reflected the benefit from the comparison to the closures/reduced operating capacity in the prior year as a result of the novel coronavirus (COVID-19). Such developments may further affect entertainment, travel and leisure businesses generally and may, among other things, affect (or further affect, as applicable): Additional factors are set forth in the Companys Annual Report on Form 10-K for the year ended October 2, 2021 under Item 1A, Risk Factors, Item 7, Managements Discussion and Analysis, Item 1, Business, and subsequent reports, including, among others, quarterly reports on Form 10-Q and annual reports on Form 10-K. Operating income for the quarter reflected increases at our parks and experiences businesses, partially offset by a decrease at our consumer products business. Disney annual free cash flow for 2020 was $3.594B, a 224.37% increase from 2019. The decrease in home entertainment results was due to lower unit sales and a decrease in average net effective pricing of catalog and new release titles. BURBANK, Calif.- The Walt Disney Company (NYSE: DIS) today reported earnings for its third fiscal quarter ended July 3, 2021. Annual Cash Flow Statement | MarketWatch US Europe Asia FX Rates Futures Crypto Range S&P 500 Movers ILMN 4.1 NFLX 2.5 GLW 2.5 ADI -7.8 INTU -7.5 A -5.9 Visit Market. The increase in operating loss was due to a higher loss at Disney+ and a decrease in results at Hulu, partially offset by improved results at ESPN+. 818-560-4832, Christina Robertson The Company uses free cash flow (cash provided by continuing operations less investments in parks, resorts and other property), among other measures, to evaluate the ability of its operations to generate cash that is available for purposes other than capital expenditures. The Company believes that information about total segment operating income assists investors by allowing them to evaluate changes in the operating results of the Companys portfolio of businesses separate from non-operational factors that affect net income, thus providing separate insight into both operations and other factors that affect reported results. Charges for the prior-year quarter were primarily due to severance costs. In the current quarter, the Company recorded a $63 million non-cash gain to adjust its investment in DraftKings, Inc. (DraftKings) to fair value (DraftKings gain (loss)). The Content License Early Termination adjustment is included in Company revenues, but excluded from total segment revenues. The average monthly revenue per paid subscriber for the Hulu Live TV + SVOD service increased from $75.11 to $87.01 due to increases in retail pricing and higher per-subscriber advertising revenue, partially offset by the impact of the new Hulu Live TV + SVOD offering. COVID-19 and measures to prevent its spread have impacted our segments in a number of ways, most significantly at the Disney Parks, Experiences and Products segment where our theme parks and resorts were closed and cruise ship sailings and guided tours were suspended. Free cash flow, diluted EPS excluding certain items and total segment operating income as we have calculated them may not be comparable to similarly titled measures reported by other companies. By Mark R. Hake, CFA May 5, 2022, 10:06 am EDT Source: nikkimeel / Shutterstock.com Disney (NYSE: DIS) stock is down 27% year-to-date (YTD). Corporate and Unallocated Shared Expenses. Capital expenditures increased from $0.8 billion to $1.0 billion due to the temporary suspension of certain capital projects at Disney Parks, Experiences and Products in the prior-year quarter as a result of COVID-19 and higher spend on corporate facilities in the current quarter. 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 Bob Chapek, Chief Executive Officer, The Walt Disney Company. Subscribers include those who receive a service through wholesale arrangements including those for which we receive a fee for the distribution of the service to each subscriber of an existing content distribution tier. DISCUSSION OF FOURTH QUARTER SEGMENT RESULTS. Revenue and operating results for the Disney Media and Entertainment Distribution segment are as follows (in millions): (1) Reflects fees received by the Linear Networks from other DMED businesses for the right to air our Linear Networks and related services. Reflects amounts attributable to shareholders of The Walt Disney Company, i.e. 562-889-2715, Do Not Sell or Share My Personal Information. Disney annual free cash flow for 2021 was $1.988B, a 44.69% decline from 2020. Learn more Breakdown ttm 9/30/2022 9/30/2021 9/30/2020 9/30/2019. Depreciation expense was as follows (in millions): This earnings release presents free cash flow, diluted EPS excluding certain items, and total segment operating income, all of which are important financial measures for the Company, but are not financial measures defined by GAAP. The decrease in operating results was due to lower TV/SVOD and home entertainment distribution results, partially offset by higher theatrical distribution results and an increase at our stage play business, as stage play productions were generally shut down in the prior-year quarter due to COVID-19. Free cash flow is not a financial measure defined by GAAP. Revenue per paid subscriber is calculated based on the average of the monthly average paid subscribers for each month in the period. Free cash flow, diluted EPS excluding certain . Content Sales/Licensing and Other revenues for the quarter decreased 15% to $1.7 billion and segment operating results decreased from a loss of $65 million to a loss of $178 million. Changes in operating assets and liabilities: Cash (used in) provided by discontinued operations, Contacts: The decrease at Cable was primarily due to higher programming and production costs and increased marketing spending, partially offset by growth in advertising and affiliate revenue. Investments in parks, resorts and other property were as follows (in millions): Total Disney Parks, Experiences and Products, Total investments in parks, resorts and other property. The monthly average paid subscribers is calculated as the sum of the beginning of the month and end of the month paid subscriber count, divided by two. Results at Disney+ reflected higher programming and production costs, increases in marketing and technology costs and the absence of Premier Access releases in the current quarter, partially offset by higher subscription revenue. Advertisement Walt Disney Co. DIS (U.S.: NYSE) View All companies AT CLOSE 4:03 PM EDT 06/08/23 $92.53 USD 0.01 0.01% AFTER HOURS 7:59 PM EDT 06/08/23 $92.50 -0.03 -0.03% AFTER HOURS Vol 641,996. Effective December 21, 2021, Hulu Live TV + SVOD includes Disney+ and ESPN+ (new Hulu Live TV + SVOD offering), whereas previously, Hulu Live TV + SVOD was offered as a standalone service or with Disney+ and ESPN+ as optional additions (old Hulu Live TV + SVOD offering). Historical Prices. Operations resumed at various points since May 2020, with certain theme park and resort operations and film and television productions resuming by the end of fiscal 2020 and throughout fiscal 2021. Reflects amounts attributable to shareholders of The Walt Disney Company, i.e. Disney annual cash flow from operating activities for 2021 was $5.566B, a 26.92% decline from 2020. 9/30/2022. Revenues for the quarter and six months grew 13% and 10%, respectively. The Walt Disney Company Reports Fourth Quarter and Full Year Earnings for Fiscal 2022 BURBANK, Calif.- The Walt Disney Company (NYSE: DIS) today reported earnings for its fourth quarter and fiscal year ended October 1, 2022. See the discussion on pages 12 through 15. David Jefferson The Company believes that information about total segment operating income assists investors by allowing them to evaluate changes in the operating results of the Companys portfolio of businesses separate from non-operational factors that affect net income, thus providing separate insight into both operations and other factors that affect reported results. The increase was due to higher operating income and, to a lesser extent, lower tax payments and pension contributions. The decrease at Broadcasting was due to lower results at the owned television stations primarily due to lower political advertising revenue, partially offset by higher affiliate revenue, which reflected an increase in contractual rates. Disney annual cash flow from investing activities for 2022 was $-5.008B, a 57.93% increase from 2021. Direct-to-Consumer revenues for the quarter increased 8% to $4.9 billion and operating loss increased $0.8 billion to $1.5 billion. Capital Expenditures and Depreciation Expense. See the discussion on page 2 and on pages 12 through 15 for how we define and calculate these measures and a reconciliation thereof to the most directly comparable GAAP measures. Effective March 15, 2022, Hulu SVOD Only is also offered with Disney+ as an optional add-on. The following tables present additional information about our Disney+, ESPN+ and Hulu DTC product offerings(1). Such differences may result from actions taken by the Company, including restructuring or strategic initiatives (including capital investments, asset acquisitions or dispositions, new or expanded business lines or cessation of certain operations), our execution of our business plans (including the content we create and IP we invest in, our pricing decisions and our cost structure) or other business decisions, as well as from developments beyond the Companys control, including: each such risk includes the current and future impacts of, and is amplified by, COVID-19 and related mitigation efforts. 2022. As a result of COVID-19-related timing shifts, we aired 13 matches in the current quarter and 44 matches in the prior-year quarter. Higher volumes were due to increases in attendance, occupied room nights and cruise ship sailings. During the prior-year quarter, the Company recorded charges totaling $113 million due to severance. There were no significant titles released in the prior-year quarter. Growth at our merchandise licensing business was primarily due to higher sales of merchandise based on Mickey and Friends, Encanto and Toy Story. The increase in programming and production costs was primarily due to higher subscriber-based fees for programming the Live TV service due to rate increases and the carriage of more networks. . The increases in CFP and NFL programming costs were due to higher contractual rates. Certain statements and information in this earnings release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future performance and growth; and the future impact of COVID-19 on our businesses and other statements that are not historical in nature. Income from equity investees increased $35 million, to $147 million from $112 million, driven by impairments of certain equity investments in the prior-year quarter. Disney+ average monthly revenue per paid subscriber is calculated using a daily average of paid subscribers for the period. It. These increases were partially offset by the comparison to a net working capital benefit in the prior year, which reflected the resumption of our businesses following COVID-19-related shutdowns, higher net spending for film and television content and, to a lesser extent, a partial payment for the Content License Early Termination in fiscal 2022. The increase in sports programming costs was due to higher costs for cricket programming, partially offset by lower costs for soccer programming reflecting fewer games in the current quarter. Capital Expenditures and Depreciation Expense. The Company incurs significant marketing costs before and throughout the theatrical release, which may result in a loss during theatrical distribution. Walt Disney's estimated fair value is US$131 based on 2 Stage Free Cash Flow to Equity. The terms Company, we, and our are used in this report to refer collectively to the parent company and the subsidiaries through which our various businesses are actually conducted. Even in the second quarter, investments in various activities still exceeded. The effective income tax rate in the prior-year quarter was lower than the U.S. statutory rate due to favorable adjustments related to prior years, partially offset by higher effective tax rates on foreign earnings. Since early 2020 the world has been, and continues to be, impacted by the novel coronavirus (COVID-19) and its variants. In addition, at DMED we delayed, or in some cases, shortened or cancelled theatrical releases and experienced disruptions in the production and availability of content. To access the Webcast go to www.disney.com/investors. During the prior-year quarter, the Company recorded $92 million of charges for asset impairments, pension settlements and severance primarily at our parks and experience businesses. The following table summarizes the fourth quarter and full year results for fiscal 2022 and 2021: Income from continuing operations before income taxes, Diluted EPS from continuing operations(3). The average revenue per paid subscriber is net of discounts on the SVOD Bundle or other offerings that carry more than one service. BURBANK, Calif.The Walt Disney Company (NYSE: DIS) today reported earnings for its fourth quarter and fiscal year ended October 1, 2022. Corporate Communications 818-560-4832, Alexia Quadrani For Disney, we come up with an equity value of US$426b today . Higher operating results for the quarter reflected increases at our domestic and international parks and experiences businesses and, to a lesser extent, our merchandise licensing business. We have incurred, and will continue to incur, costs to address government regulations and the safety of our employees, guests and talent, of which certain costs are capitalized and will be amortized over future periods. These statements are made on the basis of managements views and assumptions regarding future events and business performance as of the time the statements are made. Higher costs for cricket programming were driven by the airing of International Cricket Council (ICC) T20 World Cup matches in the current quarter, partially offset by the impact of fewer Indian Premier League (IPL) cricket matches in the current quarter compared to the prior-year quarter. The increase in operating loss was due to higher losses at Disney+, and to a lesser extent, ESPN+, partially offset by improved results at Hulu. During the fiscal year ended October 1, 2022, the Company recognized a $1,023 million reduction in revenue for the amount due to a customer to early terminate license agreements for film and television content delivered in previous years in order for the Company to use the content primarily on our direct-to-consumer services (Content License Early Termination). Paid subscribers reflect subscribers for which we recognized subscription revenue. The decrease at Direct-to-Consumer was due to higher losses at Disney+ and, to a lesser extent, lower results at Hulu and higher losses at ESPN+. Disney has a giant cash flow advantage. Disney+ average monthly revenue per paid subscriber is calculated using a daily average of paid subscribers for the period. Depending on the market, our services can be purchased on our websites, through third-party platforms/apps or via wholesale arrangements. 31/12. The following table summarizes the fourth quarter and full year segment revenue and segment operating income for fiscal 2022 and 2021 (in millions): Disney Media and Entertainment Distribution. Get the annual and quarterly balance sheet of The Walt Disney Company (DIS) including details of assets, liabilities and shareholders' equity. The Company evaluates the performance of its operating segments based on segment operating income, and management uses total segment operating income as a measure of the performance of operating businesses separate from non-operating factors. The following table presents a reconciliation of the Companys consolidated cash provided by operations to free cash flow (in millions): The Company uses diluted EPS excluding (1) certain items affecting comparability of results from period to period and (2) amortization of TFCF and Hulu intangible assets, including purchase accounting step-up adjustments for released content, to facilitate the evaluation of the performance of the Companys operations exclusive of these items, and these adjustments reflect how senior management is evaluating segment performance. 2022. 2025. THE WALT DISNEY COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited; in millions, except per share data), Accounts payable and other accrued liabilities, Common stock, $0.01 par value, Authorized 4.6 billion shares, Issued 1.8 billion shares, Treasury stock, at cost, 19 million shares, THE WALT DISNEY COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited; in millions), Cash distributions received from equity investees, Net change in produced and licensed content costs and advances, Pension and postretirement medical cost amortization. International Channels revenues for the quarter decreased 18% to $1.1 billion and operating income decreased 18% to $0.1 billion, reflecting lower operating income from channels that operated for the entire current and prior-year quarters (ongoing channels), partially offset by a benefit from channel closures. Segment operating income increased $0.9 billion to $1.5 billion compared to $0.6 billion in the prior-year quarter. Projected. The increase in programming and production costs was driven by more content provided on the service and higher average costs, which included an increased mix of original content. Lower results at our consumer products business were due to the closure of a substantial number of Disney-branded retail stores in North America and Europe in the second half of fiscal year 2021. Disney Parks, Experiences and Products revenues for the quarter increased to $7.4 billion compared to $5.5 billion in the prior-year quarter. Research & Ratings. Item. The following is a reconciliation of income from continuing operations before income taxes to total segment operating income (in millions): Corporate and unallocated shared expenses, Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs. Revenue includes subscription fees, advertising (excluding revenue earned from selling advertising spots to other Company businesses) and premium and feature add-on revenue but excludes Premier Access and Pay-Per-View revenue. The decrease was due to higher payments of accounts payable and other liabilities and higher spending for film and television content, partially offset by higher operating income. These measures should be reviewed in conjunction with the most comparable GAAP financial measures and are not presented as alternative measures of cash provided by continuing operations, diluted EPS or income from continuing operations before income taxes as determined in accordance with GAAP. Average Monthly Revenue Per Paid Subscriber(1) for the quarter ended: See discussion on page 11DTC Product Descriptions and Key Definitions, Total may not equal the sum of the column due to rounding. The increase at Hulu was due to subscription revenue growth, partially offset by higher programming and production costs. Excluding certain items(1), diluted EPS for the quarter increased to $1.06 from $0.32 in the prior-year quarter. The increase in income from UFC pay-per-view events was due to higher revenue per event, partially offset by the impact of one less event in the current quarter compared to the prior-year quarter. The increase in interest expense was primarily due to higher average rates, partially offset by lower average debt balances. Management does not undertake any obligation to update these statements. Subscription revenue growth was due to increases in subscribers and in retail pricing. Cash provided by operations and free cash flow were as follows (in millions): Investments in parks, resorts and other property. Cash used in operations was $0.2 billion in the current year compared to cash provided by operations of $0.1 billion in the prior-year quarter. 2022. Walt Disney Co. FCFF decreased from 2020 to 2021 and from 2021 to 2022. Compare DIS With Other Stocks From: To: Zoom: 0 50 100 150 Stock Price -2 0 2 4 6 TTM FCF per Share The Discounted Cash Flow (DCF) model is the tool we will apply to do this. THE WALT DISNEY COMPANY CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited; in millions, except per share data), Loss from discontinued operations, net of income tax benefit of $0, $0, $14 and $9, respectively, Net income attributable to The Walt Disney Company (Disney). For the current quarter, intangible asset amortization was $435 million, step-up amortization was $157 million and amortization of intangible assets related to TFCF equity investees was $3 million. Shanghai Disney Resort and Tokyo Disney Resort were open for the entire quarter in both the current and prior years. Growth at Hong Kong Disneyland Resort was driven by higher attendance. after deduction of income attributable to noncontrolling interests. For the prior-year quarter, intangible asset amortization was $447 million, step-up amortization was $167 million and amortization of intangible assets related to TFCF equity investees was $3 million. The cash flow statement is a summary of the cash inflows and outflows for a business over a given period of time. The cash flows are grouped into three main categories: cash flow from operations, cash flow from investing and cash flow from financing. The increases in costs and subscribers reflected growth in existing markets and to a lesser extent, expansion to new markets. Across the month, new episodes of anticipated shows, as well as movies, are dropping on the streaming service. When we aggregate the total number of paid subscribers across our DTC streaming services, we refer to them as paid subscriptions. Net income attributable to noncontrolling interests was as follows (in millions): Net income from continuing operations attributable to noncontrolling interests. Such differences may result from actions taken by the Company, including restructuring or strategic initiatives (including capital investments, asset acquisitions or dispositions, new or expanded business lines or cessation of certain operations) or other business decisions, as well as from developments beyond the Companys control, including: each such risk includes the current and future impacts of, and is amplified by, COVID-19 and related mitigation efforts. Most investment banking firms follow our guidelines to get discounted cash flow statement of . Projected. Effective December 21, 2021, Hulu Live TV + SVOD includes Disney+ and ESPN+ (the new Hulu Live TV + SVOD offering), whereas previously, Hulu Live TV + SVOD was offered as a standalone service or with Disney+ and ESPN+ as optional additions (the old Hulu Live TV + SVOD offering). The following table presents a summary of the Companys consolidated cash flows (in millions): Cash provided by operations continuing operations, Cash used in investing activities continuing operations, Cash used in financing activities continuing operations, Cash (used in) provided by discontinued operations, Impact of exchange rates on cash, cash equivalents and restricted cash, Change in cash, cash equivalents and restricted cash, Cash, cash equivalents and restricted cash, beginning of period, Cash, cash equivalents and restricted cash, end of period. Understand The Walt Disney Company Discounted Cash Flow Statement (DCF) change input and create cutom dcf, DIS stock. Disney+ is available in more than 150 countries and territories outside the U.S. and Canada. BURBANK, Calif.The Walt Disney Company (NYSE: DIS) today reported earnings for its first fiscal quarter ended January 1, 2022. The increase in episodic television content sales reflected more significant titles sold in the current quarter. The following table provides further detail of Linear Networks results (in millions): Domestic Channels revenues for the quarter increased 1% to $6.2 billion, and operating income decreased 21% to $0.9 billion, which reflected lower operating income at both Cable and Broadcasting. Revenues for the quarter and year grew 9% and 23%, respectively. Walt Disney's US$91.93 share price signals that it might be 30% undervalued. The Company further believes that providing diluted EPS exclusive of amortization of TFCF and Hulu intangible assets associated with the acquisition in 2019 is useful to investors because the TFCF and Hulu acquisition was considerably larger than the Companys historic acquisitions with a significantly greater acquisition accounting impact. In addition, we experienced significant disruptions in the production and availability of content, including the delay of key live sports programming during fiscal 2020 and fiscal 2021. The decrease in results at Hulu was due to higher programming and production and marketing costs, partially offset by subscription revenue growth. The average monthly revenue per paid subscriber for domestic Disney+ increased from $5.80 to $6.68 due to an increase in retail pricing and a lower mix of wholesale subscribers, partially offset by a higher mix of subscribers to the SVOD Bundle. Actual results may differ materially from those expressed or implied. Charges for the prior year, were due to asset impairments and severance costs primarily related to the planned closure of an animation studio and a substantial number of our Disney-branded retail stores, as well as severance at our other businesses. Broadcasting grew modestly compared to the prior-year quarter as growth at the owned television stations from higher advertising and affiliate revenue was partially offset by lower results at ABC. Equity in the income of investees was as follows (in millions): Amortization of TFCF intangible assets related to equity investees. The following table provides further detail of Linear Networks results (in millions): Domestic Channels revenues for the quarter decreased 2% to $5.3 billion, and operating income increased 6% to $1.5 billion. We have generally been able to release our films theatrically in the current quarter, although certain markets continue to impose restrictions on theater openings and capacity. In the current quarter, there were no Premier Access releases whereas the prior-year quarter reflected the releases of Black Widow and Jungle Cruise. Total may not equal the sum of the column due to rounding. Options. Subscribers cease to be a paid subscriber as of their effective cancellation date or as a result of a failed payment method. The decreases in sports programming costs and average viewership were due to the non-comparability of cricket events reflecting the impact of COVID-19-related timing shifts. Average Monthly Revenue Per Paid Subscriber(5) for the quarter ended: In the U.S., Disney+, ESPN+ and Hulu SVOD Only are each offered as a standalone service or as a package that includes all three services (the SVOD Bundle). Higher sales of film content was driven by an increase in sales of library content and more title availabilities in the free television window. See further discussion of total segment operating income on page 2. In certain Latin American countries, we offer Disney+ as well as Star+, a general entertainment SVOD service, which is available on a standalone basis or together with Disney+ (Combo+). Subscription revenue growth was due to an increase in subscribers and higher rates driven by increases in retail pricing for the Hulu Live TV + SVOD service. Disney net cash flow for the quarter ending March 31, 2023 was $-1.208B, a 55.01% decline year-over-year. Disney reported an outflow of negative $1.19 billion in its fiscal Q1. International Channels revenues for the quarter decreased 4% to $1.6 billion and operating income decreased 2% to $369 million. The key is that Disney generated more than $5 billion in cash. And as we embark on Disneys second century in 2023, I am filled with optimism that this iconic companys best days still lie ahead.(2). The following table summarizes the first quarter segment revenue and segment operating income (loss) for fiscal 2022 and 2021 (in millions): Disney Media and Entertainment Distribution. Cruise ships were operating during the entire current quarter while sailings resumed during the prior-year quarter and operated at reduced capacities. 2026. Interest expense, net was as follows (in millions): Interest income, investment income and other. In India and certain other Southeast Asian countries, the service is branded Disney+ Hotstar. Cash Flow Statement for Walt Disney Company, company's cash and cash equivalents, broken down to operating, investing and financing activities. Certain of our international operations continue to be impacted by mandatory COVID-19-related capacity and travel restrictions. Results at Disneyland Paris were due to increases in attendance and occupied room nights, partially offset by higher operating costs. The following table reconciles reported diluted EPS from continuing operations to diluted EPS excluding certain items for the first quarter: Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs(5). Free Cash Flow per Share: 1.84 3.68 5.33 6.87 7.29 Book Value per Share: 54.73 58.81 63.93 . Lower NBA rights costs reflected the timing of the NBA Finals, which aired in the third quarter of the current fiscal year compared to the fourth quarter of the prior year, as a result of a delayed start of the 2021 NBA season due to COVID-19. The decrease in theatrical distribution results was due to losses on titles released in the current quarter, partially offset by income from the co-production of Marvels Spider-Man: No Way Home. 818-560-6601, Do Not Sell or Share My Personal Information. Disney annual cash flow from investing activities for 2021 was $-3.171B, a 17.64% decline from 2020. Overview Earnings & Estimates Walt Disney Co. Subscribers to the SVOD Bundle are counted as a paid subscriber for each service included in the SVOD Bundle and subscribers to the old Hulu Live TV + SVOD offering and new Hulu Live TV + SVOD offering are counted as one paid subscriber for each of the Hulu Live TV + SVOD, Disney+ and ESPN+ offerings. Cash Flow. Investors will undoubtedly want to see how free cash flow builds up over the remaining three quarters of 2022. Although operations resumed, many of our businesses continue to experience impacts from COVID-19, such as incremental health and safety measures and related increased expenses, capacity restrictions and closures (including at some of our international parks and in theaters in certain markets), and disruption of production activities. . In the current quarter, other income, net was due to the DraftKings gain ($63 million). Higher operating results at Disneyland Paris were due to an increase in volumes and higher average ticket prices, partially offset by higher operations support costs. Interest expense, net was as follows (in millions): Interest, investment income (loss) and other. Such developments may further affect entertainment, travel and leisure businesses generally and may, among other things, affect (or further affect, as applicable): Additional factors are set forth in the Companys Annual Report on Form 10-K for the year ended October 2, 2021, including under the captions Risk Factors, Managements Discussion and Analysis of Financial Condition and Results of Operations, and Business, quarterly reports on Form 10-Q, including under the captions Risk Factors and Managements Discussion and Analysis of Financial Condition and Results of Operations, and subsequent filings with the Securities and Exchange Commission. The discussion will be archived. . 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