As a seasoned movie critic who’s been following Disney‘s journey since the days of Mickey Mouse shorts, I must say this latest financial report is nothing short of spectacular! The Mouse House has certainly found its second wind, and it’s not just about the magic, but also the math. With blockbuster hits like “Inside Out 2” and “Deadpool & Wolverine,” coupled with a steady increase in Disney+ subscribers, it seems Disney is back on top of the entertainment world.
At the close of the 2024 financial year, Disney reported a total of 122.7 million active Disney+ Core subscriptions, marking a growth of 4.4 million users compared to the preceding three months – exceeding expectations.
In the fourth fiscal quarter of 2024, Disney surpassed Wall Street predictions with their results, and what really caught attention was an improvement in profitability across their streaming business. Their operating income for this period reached $321 million, a significant change from the loss of $387 million in the same period the previous year. This positive shift follows Disney’s direct-to-consumer business posting its first operating profit of $47 million during the preceding quarter.
During the period ending September 30, Disney experienced a significant increase in box office revenues. This surge was primarily fueled by the summer hits “Inside Out 2” from Pixar and “Deadpool & Wolverine” from Marvel, which generated an operating income of $316 million for Disney’s content sales and licensing division.
Delightedly, I’ve noticed a significant surge in Disney’s overall entertainment division income this year, reaching an impressive $10.8 billion compared to last year’s $9.5 billion. This growth encompasses their linear networks such as ABC, streaming services, and content sales and licensing. Interestingly, the sports division, primarily ESPN and ESPN+, maintained a steady level at $3.9 billion. Lastly, the revenue from experiences, which incorporates theme parks, video games, and consumer products, slightly increased by 1% to $8.2 billion.
The income generated by linear networks dropped by 6%, totaling approximately $2.5 billion, with a 5% decrease in the U.S. due to reduced affiliate revenue and ad sales, and a 12% decline internationally. However, streaming revenue increased by 15% ($5.8 billion) during the same period, along with a 14% growth in streaming ad sales. Additionally, content sales and licensing saw an increase of 39% ($2.6 billion), largely due to Disney’s strong box office performances.
The number of Disney+ subscribers in the U.S., Canada, and other regions (excluding Disney+ Hotstar) grew by 2% to reach approximately 56.0 million and 5% to about 66.7 million respectively. Meanwhile, Disney+ Hotstar subscribers increased slightly by 1% to around 35.9 million. Additionally, Hulu now has a total of 52 million subscribers, with 4.6 million opting for Live TV + streaming and the remaining 47.4 million choosing streaming-only services.
In the fourth fiscal quarter, Disney recorded a total revenue of approximately $22.6 billion, representing a 6% increase compared to the previous year. This also resulted in a net income of $460 million, contrasting with $264 million from the same period last year. On an adjusted basis, this translated to earnings per share of $1.14. Wall Street analysts had predicted earnings per share of $1.10 on revenue of around $22.48 billion, as suggested by data from LSEG. For the quarter, Disney generated a free cash flow of $4 billion.
In its financial report released on Thursday, Disney shared its predictions regarding earnings per share for not just the fiscal year 2025, but also 2026 and 2027. It anticipates high single-digit growth in EPS for 2025, with a more significant increase of double-digit adjusted EPS growth expected from 2026 onwards. The company expressed confidence in the long-term success of its business and believes it is well-prepared for continued growth. However, Disney also mentioned that it expects a slight decrease in Disney+ Core subscribers in the upcoming quarter, which will be influenced by the price increase implemented in October 2024.
2021 proved to be a defining and thriving year for The Walt Disney Company, as we’ve overcome substantial hurdles and turbulence, setting us up favorably for expansion and filled with hope regarding our tomorrow, remarked CEO Bob Iger in a released statement.
During fiscal Q4, our film studio experienced one of its most successful quarters ever, boosted profitability across our streaming platforms, earned a record-breaking 60 Emmy Awards as a company, showcased the strength of live sports, and presented an exciting lineup of upcoming projects for our Experiences division. The CEO remarked that due to our strategic approach and concentration on managing our businesses for both immediate and long-term success, we are setting ourselves apart from conventional competitors. By utilizing the richest and most extensive collection of entertainment assets in the industry, we’re generating appealing returns and progressing toward our objectives.
More to come…
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2024-11-14 14:47