'Inside Out 2,' 'Deadpool 3' helped skyrocket Disney's income
The Walt Disney Company has added a whopping 122.7 million paid subscribers for Disney+ Core by the end of fiscal year 2024. The growth, which added 4.4 million subscribers over the three-month period ending in September, came as a surprise. The company's overall streaming business also became more profitable with operating income jumping to $321 million, a stark contrast to the $387 million loss reported last year during the same period.
Disney's film and content sales boosted Q4 results
Disney's Q4 2024 results were boosted by successful box office performances from Pixar's Inside Out 2 and Marvel's Deadpool & Wolverine. The films contributed to a $316 million operating income for the content sales and licensing segment. Currently, they are running on Disney+ and bringing in more bucks. Overall, Disney's entertainment division revenue, including linear networks like ABC, its streaming business, and content sales and licensing, saw a 14% YoY increase to $10.8B.
Disney's sports and experiences segments saw steady revenue
Disney's sports division, mainly consisting of ESPN and ESPN+, saw flat sales at $3.9 billion. The experiences segment, which includes theme parks, video games, and consumer products, witnessed a slight 1% increase in revenue to $8.2 billion. However, linear networks' revenue dipped by 6% to $2.5 billion due to lower affiliate revenue and ad sales in the US and a 12% decline internationally.
Disney+ subscriber growth and financial performance
Disney+ witnessed a 2% growth in US and Canadian subscribers from the last quarter to 56 million, while international customers (excluding Disney+ Hotstar) increased by 5% to 66.7 million. Disney+ Hotstar subscribers increased marginally by 1% to 35.9 million. Hulu also saw growth with its subscriber base hitting 52 million, including both Live TV + streaming customers and streaming-only users.
Disney's consolidated revenue and net income for Q4
For fiscal Q4, Disney posted a consolidated revenue of $22.6 billion, a 6% increase on the top line. The company's net income also increased to $460 million from $264 million in the same period last year. This led to adjusted earnings per share of $1.14, beating Wall Street's estimate of $1.1 on $22.48 billion in revenue according to data from LSEG. Disney's free cash flow for the quarter was $4 billion.
Disney provided financial guidance for fiscal 2025-2027
In its earnings report, Disney also gave financial guidance for FY 2025, 2026, and 2027. While the company is confident about its long-term business, it expects a "modest decline" in Disney+ Core subscribers next quarter due to a price hike introduced in October 2024. CEO Bob Iger said that thanks to the major progress made during a challenging period, the company is "well positioned for growth and optimistic about our future."
