Disney’s fiscal fourth-quarter earnings reveal a company thriving amidst industry challenges. Streaming growth, box office success, and theme park investments have positioned the company for sustained profitability. With CEO Bob Iger restructuring Disney before his 2026 departure, the entertainment giant is gearing up for future growth.
A Blockbuster Quarter for Disney
Disney’s fiscal fourth-quarter results exceeded Wall Street expectations, driven by exceptional performance across its entertainment segment. Earnings per share reached $1.14, surpassing the expected $1.10, while revenue hit $22.57 billion, slightly above the $22.45 billion forecast.
“Disney had a strong 2024 overall,” said Chief Financial Officer Hugh Johnston during a CNBC interview. “We’ve put creativity back at the company’s center and improved profitability substantively.”
The entertainment segment, buoyed by a historic summer at the box office, contributed $1.1 billion in profit. Hits like *Inside Out 2* and *Deadpool & Wolverine* broke records, with Disney becoming the first studio to surpass $4 billion globally in 2024.
Streaming Success: From Losses to Profits
Disney’s streaming business has made remarkable strides. Five years after its launch, Disney+ turned profitable, alongside Hulu and ESPN+. For the September period, the segment reported a $321 million operating income—a stark contrast to the $387 million loss during the same quarter last year.
Executives are optimistic about streaming’s potential. “Streaming will be a significant growth area for Disney,” they stated. Disney+ Core subscribers grew by 4% to 122.7 million, and Hulu added 2% to 52 million. The focus on advertising within the streaming model has been a key profitability driver, though average revenue per user for Disney+ dipped slightly due to cheaper, ad-supported plans.
Theme Parks: A Mixed Bag
Disney’s experiences segment, encompassing theme parks and cruise lines, saw modest revenue growth of 1% to $8.24 billion. Domestic parks recorded a 5% rise in operating income due to increased guest spending. However, international parks struggled, with a 32% drop in operating income.
Despite challenges, Disney remains confident. “The experiences business reported record fiscal full-year revenue and profit,” executives shared, emphasizing the expansion of cruise lines and park enhancements as growth opportunities.
Guidance for the Future
Disney’s outlook is equally optimistic. The company projects high single-digit adjusted earnings growth for fiscal 2025 and double-digit growth for 2026 and 2027. Streaming revenue is expected to climb, though a slight decline in Disney+ Core subscribers is anticipated in the upcoming quarter due to higher pricing.
The traditional TV networks segment continues to decline, with revenue dropping 6% year-over-year. However, Disney’s diversified portfolio, spanning streaming, box office hits, and theme parks, ensures resilience.
Disney’s strategic focus on innovation and profitability solidifies its position as an industry leader. Leveraging creativity and operational efficiency, the company looks forward to continued growth. For investors, Disney’s strong performance signals promising returns on the horizon.
