The Walt Disney Co. concluded its fiscal 2024 on a positive note, driven largely by the performance of its theatrical film division and growth in streaming. However, its ESPN and experiences businesses contributed to a slight decline in net income compared to the previous year.
For its fiscal fourth quarter, ending September 30, the company reported revenue of $22.57 billion marking a 6% increase from the same period last year. Additionally, marking a 6% decrease year-over-year the company posted net income of $948 million, while diluted earnings per share (EPS) rose to $0.25, compared to $0.14 in the previous year.
The entertainment segment was primarily the reason for the growth, which saw a 14% increase in revenues, reaching $10.8 billion. Segment operating income more than doubled, rising over 100% to $1.07 billion. The company benefited from the success of two major theatrical releases during the quarter: Deadpool & Wolverine and Inside Out 2.
With an operating income of $321 million from Disney’s direct-to-consumer offerings, Streaming profitability improved. Notably, Disney+ gained over four million “core” subscribers during the period, bringing its total to more than 120 million core subscribers while revenue from the direct-to-consumer segment reached $5.8 billion.
Additionally, revenues increased by 1% in the quarter, in Disney’s experiences division, largely driven by domestic parks. However, operating income declined by 6%, reaching $1.7 billion. According to company executives the results were primarily affected by Disney’s international parks, with attendance impacted by the Paris Olympics and some weakness in Shanghai. Despite a previous quarter of softer performance at domestic parks, executives noted that domestic operations are showing signs of improvement and are expected to continue strengthening in the future.
Disney CEO, Bob Iger, said, “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. Our solid performance in the fiscal fourth quarter reflected the success of our strategic efforts to improve quality, innovation, efficiency, and value creation. In Q4 we saw one of the best quarters in the history of our film studio, improved profitability in our streaming businesses, a record-breaking 60 Emmy Awards for the company, the continued power of live sports, and the unveiling of an impressive collection of new projects coming to our Experiences segment. As a result of our strategies and our focus on managing our businesses for both the near- and long-term, we are differentiating ourselves from traditional competitors, leveraging the deepest and broadest set of entertainment assets in the industry to drive attractive returns and further advance our goals.”
Furthermore, Disney is forecasting high single-digit growth in earnings per share (EPS), along with an $875 million increase in streaming operating income for fiscal 2025, which begins this quarter. With the majority of the growth anticipated in the second half of the year the company also expects double-digit operating income growth in its sports division and 6-8% growth in operating income for its experiences segment. However, the experiences division is projected to face a $130 million impact from Hurricanes Milton and Helene.