Walt Disney (DIS) has exceeded market forecasts with its recent quarterly performance.
According to Korea Investment & Securities, Disney’s revenue for the fourth quarter of fiscal 2024 (July–September) reached $22.57 billion, marking a 6% year-over-year increase and aligning with consensus estimates. Earnings per share (EPS) slightly exceeded expectations, reaching $1.14.
In the entertainment segment (broadcasting, film, streaming, etc.), revenue rose by 14% to $10.83 billion, while operating profit surged 352% to $1.07 billion.
Disney+ core subscribers grew to 122.7 million in Q4, an increase of about 3 million.
Analyst Jisoo Lee from Korea Investment & Securities attributed the entertainment segment’s strong performance to the success of Inside Out 2 and Deadpool & Wolverine.
These two films generated $1.39 billion and $2.39 billion in U.S. and global box office revenues, respectively, contributing 13% and 22% of the entertainment segment’s revenue.
The sports segment saw flat revenue at $3.9 billion while operating profit declined by 5% to $930 million. ESPN’s revenue increased by 1%, but its operating profit dropped by 6%.
Revenue from theme parks and cruises increased by 1% to $8.24 billion, although operating profit fell 6% to $1.66 billion.
Lee forecasts continued growth in the Direct-to-Consumer (DTC) segment next year. DTC’s operating profit is projected to rise by approximately $880 million compared to FY2024, partly due to a base effect from a $200 million loss associated with Hot Star.
Disney+ core subscribers are expected to decrease slightly in Q1 next year, driven by temporary churn, price increases, and the end of promotional offers.
Next quarter’s operating profit reflects $130 million in losses from Hurricanes Helen and Milton and $90 million in costs associated with the launch of Disney Treasure Cruises.
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