Variety: Disney EMEA Posts $4.9 Billion Revenue Driven by Streaming, Films

Story from Variety:

Disney’s EMEA head office has posted revenues of £3.8 billion ($4.9 billion) in a financial report filed at U.K. business registrar Companies House this week.

The Walt Disney Company Ltd, which is owned by U.S. parent The Walt Disney Company, oversees the Mouse House’s EMEA businesses, spanning streaming, theatrical, consumer productions and experiences, including overseeing theme parks in France and Shanghai.

The latest financial report, which covers the period from Oct. 2, 2022 to Sept. 30, 2023, shows an increase in revenue of £700 million compared to the previous year, while profits jumped from £402 million in 2022 to £571 million.

The majority — £3.3 billion — came from its entertainment divisions, including television, streaming, film distribution, theatrical productions and IP development and exploitation. £526 million came from experiences, which includes character merchandising and publications and vacation packages.

The report notes that this year’s results were “Mainly driven by Disney+ and a strong performance in motion pictures in the period, offset by a downside in licensed content distribution.”

Films released by Disney during the reporting period including “Elemental” and the live-action remake of “The Little Mermaid” starring Halle Bailey while Disney+’s output included new seasons of “The Bear” and “The Kardashians.”

Since returning to the company Bob Iger has spearheaded a shift in strategy when it comes to television distribution, with a return to the older model of multiple windows rather than hoarding content for Disney+. In the U.K. a number of Disney+ originals have since been licensed to linear networks for a second window.

In terms of territory, £1.1 billion’s worth of revenue came from the U.K., £2.5 billion from the rest of Europe and £195 million from the rest of the world.

As required by Companies House, the financial report also notes “principal risks and uncertainties” the company faces, which for Disney includes economic and political changes across the world, including “a reduction of discretionary consumer spend” due to cost of living increases, changes in “public and consumer tastes and preferences” and competition. “We face substantial competition in each of our businesses,” the report notes.

As an IP powerhouse, the report also notes that Disney is aware of the challenges around IP across the world, both in terms of infringement, which it describes as “a significant challenge for IP rights holders” and the remit of its legal protection. “The value of our rights to intellectual property is dependent on the scope of our rights as defined by applicable laws… if those laws are drafted or interpreted in ways that limit the extent of our rights… our ability to generate revenue from our intellectual property rights may decrease,” the report states.

In recent years some of Disney’s oldest characters have begun to age out of copyright protection – including most recently Mickey Mouse – leading to independently-produced horror films such as “Winnie the Pooh: Blood and Honey” and “Mickey’s Mouse Trap,” the latter of which is currently in production.