Disney’s recent financial results have exceeded expectations, with the entertainment giant reporting strong earnings for the fiscal fourth quarter. The company’s success can be largely attributed to the growth of its streaming services, which have helped boost its entertainment segment.
In terms of earnings, Disney reported adjusted earnings per share of $1.14, surpassing the expected $1.10 per share. Revenue also exceeded expectations, coming in at $22.57 billion compared to the anticipated $22.45 billion. Disney’s net income saw a significant increase to $460 million, or 25 cents per share, up from $264 million, or 14 cents per share, during the same quarter last year. This growth can be attributed to various factors, including restructuring efforts and impairment charges.
The entertainment segment, which includes TV networks, direct-to-consumer streaming, and films, experienced a 14% increase in revenue year over year, reaching $10.83 billion. The success of films like “Inside Out 2” and “Deadpool & Wolverine” contributed significantly to the segment’s profitability, adding $316 million in profit during the quarter.
On the streaming front, Disney’s combined business, including Disney+, Hulu, and ESPN+, reported improved profitability. The division reported an operating income of $321 million for the quarter, marking a significant turnaround from the $387 million loss during the same period last year. Disney’s streaming services saw an increase in subscribers, with Disney+ Core subscribers growing to 122.7 million and Hulu subscribers reaching 52 million.
While the streaming business thrived, Disney’s traditional TV networks faced challenges, with revenue declining by 6% to $2.46 billion. The company’s experiences segment, which includes theme parks and consumer products, saw a modest revenue growth of 1% to $8.24 billion. However, international parks experienced a decline in operating income due to various factors.
Looking ahead, Disney remains confident in its long-term prospects and has provided an outlook for the coming years. The company expects a modest decline in Disney+ Core subscribers in the fiscal first quarter of 2025 but anticipates overall growth in its entertainment segment. Profit in the entertainment streaming business is projected to increase significantly compared to the previous fiscal year.
Despite challenges such as the impact of hurricanes and pre-launch costs for the Disney Cruise Line, Disney is optimistic about its future performance. The company foresees adjusted earnings growth in the high-single digits for fiscal 2025, followed by double-digit growth in adjusted EPS for fiscal 2026 and 2027.
Overall, Disney’s strong earnings report reflects the company’s ability to adapt to changing consumer preferences and capitalize on the growing demand for streaming services. With a solid outlook for the future, Disney continues to position itself as a leader in the entertainment industry.
