Disney Q4 bolstered by strong results from streaming, 'Inside Out 2' and 'Deadpool & Wolverine'

Date:

Share post:


Disney’s fourth-quarter adjusted profit beat Wall Street’s expectations, bolstered by strong results from its streaming service and box office success with “Inside Out 2” and “Deadpool & Wolverine.”

Disney earned $460 million, or 25 cents per share, for the period ended Sept. 28. A year earlier the Burbank, California-based company earned $264 million, or 14 cents per share.

Removing certain items, earnings were $1.14 per share. This topped the $1.09 per share that analysts surveyed by Zacks Investment Research were looking for.

Shares jumped nearly 10% before the market open on Thursday.

Revenue climbed 6% to $22.57 billion, but fell a bit short of Wall Street’s estimate of $22.59 billion.

Operating income for the entertainment segment, which includes its movie studio and parts of its television wing, more than quadrupled to $1.07 billion.

This was helped in part by a strong performance from its content/sales, licensing and other segment, which benefited from $316 million in operating income from “Inside Out 2” and “Deadpool & Wolverine.”

The Walt Disney Co. said Thursday that its direct-to-consumer business, which includes Disney+ and Hulu, reported quarterly operating income of $253 million compared with an operating loss of $420 million a year earlier. Revenue rose 15% to $5.78 billion.

The combined streaming businesses, which includes Disney+, Hulu and ESPN+, achieved profitability for the first time in the third quarter.

Disney+ saw a 2% increase in paid subscribers domestically, which includes the U.S. and Canada. It had a 5% rise internationally, which excludes Disney+ HotStar.

Disney ended the quarter with 174 million Disney+ Core and Hulu subscriptions, and more than 120 million Disney+ Core paid subscribers, an increase of 4.4 million over the prior quarter.

Disney said that its improved direct-to-consumer business results were due in part to subscription revenue growth thanks to increased in retail pricing and subscriber growth. Advertising revenue also increased and marketing costs at Disney+ declined.

“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,” CEO Bob Iger said in a statement.

The Experiences division, which includes six global theme parks, its cruise line, merchandise and videogame licensing, reported operating income dropped 6% to $1.7 billion. While operating income improved at domestic parks and Experiences, it fell for international parks and Experiences.

Disney previously forecast that its fourth-quarter Experiences operating income would fall by mid single digits compared with the prior-year period due to domestic parks moderation as well as cyclical softening in China and less people at Disneyland Paris due to the impact the Olympics had on normal consumer travel.

Looking ahead, Disney anticipates high-single digit adjusted earnings per share growth for fiscal 2025. The company predicts double digit earnings per share growth for fiscal 2026 and 2027.

Last month Disney said that it was tapping Morgan Stanley executive James Gorman to serve as its next chairman, beginning early next year. The entertainment giant also announced that it anticipates naming its new CEO in early 2026.

Gorman will become chairman on Jan. 2, 2025. He will succeed Mark Parker, who is leaving after serving on Disney’s board for nine years.

Disney is searching for a new CEO to succeed Bob Iger. Iger came back to Disney in 2022 after a period of clashes, missteps and a weakening financial performance at the company under his chosen successor, Bob Chapek.

Gorman said in a statement in October that by naming Disney’s next CEO in 2026, it “will allow ample time for a successful transition before the conclusion of Bob Iger’s contract in December 2026.”

Disney is continuing to review internal and external candidates for the CEO position.

In April shareholders rebuffed efforts by activist investor Nelson Peltz to claim seats on the company board, standing firmly behind Iger as he tries to energize the company after a rough stretch.

In June Disney asked a federal appellate court to dismiss its lawsuit against Florida Gov. Ron DeSantis after his appointees approved a deal with the company on how Walt Disney World will be developed over the next two decades, ending the last piece of conflict between the two sides.

As part of the 15-year deal, Disney agreed to invest $17 billion into Disney World over the next two decades and the district committed to making infrastructure improvement on the theme park resort’s property.



Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

Powell says Fed will likely cut rates cautiously given persistent inflation pressures

WASHINGTON -- Chair Jerome Powell said Thursday that the Federal Reserve will likely cut its key interest...

Latvia charges 2 Lithuanians for counterfeiting Ariel laundry products in organized criminal venture

HELSINKI -- Latvian police said Thursday that criminal proceedings have been initiated against two Lithuanian citizens suspected...

Number of Americans filing for unemployment falls to lowest level in 6 months

The number of Americans applying for unemployment benefits fell to the lowest level in six months last...

Ford agrees to pay penalty to US government for moving too slowly on recalls

DETROIT -- Ford Motor Co. will pay a penalty of up to $165 million to the U.S....

Veteran NBC host Craig Melvin tapped to replace Hoda Kotb for the first hours of 'Today' show

NEW YORK -- Veteran NBC host and news anchor Craig Melvin has been tapped to replace Hoda...

EU slaps Meta with a nearly 800 million euro fine for engaging in 'abusive' Marketplace practices

LONDON -- European Union regulators hit Facebook parent Meta with a fine of nearly 800 million euros...

Maker of Coach handbags calls off merger with company that produces Michael Kors accessories

NEW YORK -- Fashion company Tapestry on Thursday said it's terminating its proposed merger with Capri because...

South African government says it won't help 4,000 illegal miners inside a closed mine

JOHANNESBURG -- South Africa's government says it will not help 4,000 illegal miners inside a closed mine...