The Walt Disney Company closed out fiscal year 2024 on a high note, delivering impressive revenue growth fueled by blockbuster theatrical releases and a strong performance in streaming. The entertainment giant’s Disney earnings powered by Deadpool and Wolverine, as well as the continued expansion of Disney+, drove the company to report solid results despite challenges in its sports and experiences divisions.
Disney’s Robust Revenue and Earnings for the Year
For the fiscal fourth quarter ending on September 30, Disney reported total revenue of $22.57 billion, a 6% increase from the same quarter in the previous year. The income for the quarter was $948 million, which represented a slight 6% decline compared to the previous year, while the diluted earnings per share (EPS) climbed to $0.25, up from $0.14 last year. These results reflect Disney’s ongoing focus on expanding its entertainment business and strengthening its streaming platforms.
The entertainment segment proved to be the standout performer in Disney’s portfolio. With a 14% increase in revenue, totaling $10.8 billion, Disney’s earnings surged, driven by major theatrical releases, including Deadpool & Wolverine. Operating income in the entertainment segment soared by more than 100%, reaching $1.07 billion, showcasing Disney’s dominance in the global film industry.
Streaming Continues to Thrive
Streaming has been a major area of focus for Disney in recent years, and the company’s efforts have clearly paid off. Disney+ added more than 4 million “core” subscribers, bringing its total to 120 million. Revenue from Disney’s direct-to-consumer offerings reached $5.8 billion, with operating income of $321 million. These gains reflect Disney’s ability to effectively monetize its streaming services while expanding its subscriber base in a competitive market.
Challenges in Sports and Experiences Divisions
Despite the successes in entertainment and streaming, Disney faced some challenges in other areas. The sports division, driven by ESPN, saw flat revenue of $3.9 billion, but operating income fell by 5% to $929 million, highlighting pressures within the sports media market.
In the experiences division, which includes Disney’s theme parks, there was a slight 1% increase in revenue, driven by strong domestic park performance. However, operating income dropped by 6% to $1.7 billion, impacted by international park operations and the effects of natural disasters like Hurricanes Milton and Helene.
A Rare Three-Year Look at Disney’s Earnings Guidance
In a rare move, Disney provided earnings guidance extending as far as fiscal 2027, offering Wall Street a comprehensive view of its strategy for the next three years. For fiscal 2025, Disney is projecting high single-digit EPS growth, with an $875 million increase in streaming operating income. The company also expects double-digit operating income growth in its sports division and 6-8% growth in experiences, with the latter weighted towards the second half of the year. The experiences division, however, is set to face a $130 million impact from hurricanes.
For fiscal 2026, Disney anticipates double-digit EPS growth and expects single-digit operating income growth for sports and experiences, with low double-digit growth in entertainment. Looking ahead to fiscal 2027, Disney projects double-digit EPS growth, reflecting the company’s optimistic outlook for its diverse portfolio.
CEO Bob Iger’s Vision for the Future
In a statement, Disney CEO Bob Iger emphasized the company’s achievements over the past year, highlighting the significant progress Disney has made in navigating a challenging business landscape. He noted that the success of Deadpool & Wolverine and the continued strength of Disney’s streaming business underscored the company’s resilience and strategic focus.
“This was a pivotal and successful year for The Walt Disney Company, and thanks to the significant progress we’ve made, we have emerged from a period of considerable challenges and disruption well-positioned for growth and optimistic about our future,” Iger said. He added that Disney is uniquely positioned to leverage its diverse entertainment assets to generate attractive returns and achieve its long-term goals.
In conclusion, Disney’s performance in fiscal year 2024 was a testament to its strategic approach to content creation, streaming, and innovation. With strong guidance for the next three years, the company looks set to continue its growth trajectory, driven by its film, streaming, and sports divisions, as well as its expanding global experiences portfolio.