The Walt Disney Co (DIS, Financial) released its 8-K filing on November 14, 2024, reporting its fourth quarter and full-year earnings for fiscal 2024. The company, known for its diverse operations across entertainment, sports, and experiences, reported a 6% increase in quarterly revenues to $22.6 billion, surpassing the analyst estimate of $22.435 billion. However, its diluted earnings per share (EPS) of $0.25 fell short of the estimated $0.95, despite a significant 79% increase from the prior-year quarter.
Company Overview
Disney operates in three global business segments: entertainment, sports, and experiences. The entertainment segment includes the ABC broadcast network, cable television networks, and streaming services like Disney+ and Hulu. The sports segment houses ESPN and ESPN+ streaming service, while the experiences segment includes Disney's theme parks and vacation destinations.
Performance and Challenges
Disney's performance in Q4 was marked by a 23% growth in total segment operating income, driven by significant improvements in its entertainment segment. However, the company faced challenges with a 6% decline in income before income taxes to $0.9 billion. The sports segment saw a decrease in operating income, attributed to higher programming costs and lower affiliate revenue.
Financial Achievements
For the full year, Disney reported a 3% increase in revenues to $91.4 billion and a 59% rise in income before income taxes to $7.6 billion. The company's adjusted EPS grew by 32% to $4.97, reflecting strong operational performance. These achievements underscore Disney's ability to leverage its diverse portfolio to drive growth, particularly in the competitive media industry.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | Change |
|---|---|---|---|
| Revenues | $22.6 billion | $21.2 billion | 6% |
| Income Before Taxes | $0.9 billion | $1.0 billion | (6)% |
| Diluted EPS | $0.25 | $0.14 | 79% |
| Adjusted EPS | $1.14 | $0.82 | 39% |
Analysis of Performance
Disney's Q4 results highlight the company's resilience and strategic focus on enhancing its streaming services and content offerings. The entertainment segment's operating income surged to $1.1 billion, driven by successful box office releases and improved streaming profitability. However, the sports segment's decline in operating income reflects ongoing challenges in managing programming costs and subscriber retention.
Additional Insights
Disney ended the quarter with 174 million Disney+ Core and Hulu subscriptions, marking an increase of 4.4 million over the previous quarter. The experiences segment achieved record revenue and operating income for the full year, although Q4 saw a slight decline in operating income due to higher expenses and costs related to new guest offerings.
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," said Robert A. Iger, Chief Executive Officer, The Walt Disney Company.
Overall, Disney's Q4 earnings reflect a mixed performance, with strong revenue growth offset by challenges in certain segments. The company's strategic initiatives in streaming and content production continue to drive its long-term growth prospects, positioning it well in the competitive media landscape.
Explore the complete 8-K earnings release (here) from The Walt Disney Co for further details.
