A statue of Walt Disney and Mickey Mouse stands proudly in front of Cinderella’s Castle at Walt Disney World’s Magic Kingdom, a fitting backdrop as the company reveals its fiscal fourth-quarter earnings. On May 31, 2024, Disney reported adjusted earnings per share of $1.11, exceeding Wall Street’s estimate of $1.05, yet revenue fell short at $22.46 billion, compared to expectations of $22.75 billion. As a result, Disney’s stock took a hit, plummeting roughly 10% in early trading.
For the quarter ending September 27, Disney’s net income soared to $1.44 billion, or 73 cents per share, significantly up from the $564 million or 25 cents per share reported in the same quarter last year. Adjusting for one-time items, Disney’s earnings remained robust, but overall revenue was slightly below the previous year’s figures at nearly $22.5 billion. Notably, Disney announced plans to increase its dividend and double its share buyback program by fiscal 2026, showcasing a strategic push to bolster investor confidence.
Disney CFO Hugh Johnston emphasized the company’s positive trajectory, stating on CNBC’s “Squawk Box,” “Overall, we’re leaving the year with a lot of momentum,” particularly in streaming and experiential segments. However, the entertainment division faced challenges, with revenue declining 6% to $10.21 billion, largely due to the struggles of traditional television networks and a lackluster theatrical slate. Disputes with Google’s YouTube TV, which left Disney’s networks unavailable since October 31, further complicated matters.
Johnston confirmed ongoing negotiations with YouTube TV but warned that it would be a “challenging battle.” Advertising revenue across Disney’s linear channels, including ABC and FX, suffered too, reflecting a $40 million decline in political ad spending compared to the previous year. Limited results from the company’s 2024 joint venture in India also impacted this revenue stream.
On a brighter note, Disney’s streaming services have shown signs of growth, driven by increased subscriptions and adjustments in service offerings. Operating income from Disney’s streaming segment surged 39% to $352 million, contrasting sharply with a 21% dip in linear networks to $391 million. With increased prices and new partnerships-like the expanded carriage deal with Charter Communications-Disney is tapping into broader markets, particularly internationally.
Disney+ added 3.8 million paid subscribers this quarter, bringing its total to 131.6 million, while Hulu reached 64.1 million customers. The integration of Hulu into the Disney+ app continues, marking a strategic shift in how Disney reports its streaming metrics, echoing Netflix’s earlier move to stop updating subscriber counts.
Meanwhile, Disney’s sports division, primarily ESPN, reported a 3% revenue increase to approximately $4 billion, although operating income remained flat at $898 million, affected by expenses tied to its new direct-to-consumer app launched in August.
The experiences segment, covering theme parks, consumer products, and cruises, illustrated robust growth, with revenue climbing 6% to $8.77 billion and operating income up 13% to $1.88 billion. Johnston noted that consumer demand remains strong, with park bookings and per capita spending increasing despite economic uncertainties.
As Disney prepares for future expansions, especially in its cruise line, the outlook suggests continued momentum in its experiences business, fulfilling customer demand amid a changing media landscape.
Original Source: https://www.cnbc.com/2025/11/13/disney-dis-earnings-q4-2025.html
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Publish Date: 2025-11-13 20:09:00
