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Disney
🇺🇸 NYSE:DIS
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Sep 30, 2023

Disney Q4 2023 Earnings Report

Disney's Q4 2023 earnings reflected progress in restructuring, cost efficiency, and streaming subscriber growth.

Key Takeaways

The Walt Disney Company reported a 5% increase in revenue for the fourth quarter of fiscal year 2023. Diluted EPS increased to $0.14 from $0.09 in the prior-year quarter, and diluted EPS excluding certain items increased to $0.82 from $0.30 in the prior-year quarter. Disney+ added nearly 7 million core subscribers. Experiences operating income increased by over 30% versus the prior-year quarter.

Revenues for the quarter grew by 5% compared to the prior-year quarter.

Diluted earnings per share (EPS) from continuing operations for the quarter increased to $0.14 from $0.09 in the prior-year quarter.

Disney+ added nearly 7 million core subscribers in the fourth quarter.

Experiences operating income increased by over 30% versus the prior-year quarter.

Total Revenue
$21.2B
Previous year: $20.2B
+5.4%
EPS
$0.82
Previous year: $0.3
+173.3%
Disney+ Paid ARMPU
$6.7
Previous year: $5.96
+12.4%
ESPN+ Paid Subscribers
26M
Previous year: 24.3M
+7.0%
Hulu SVOD Only Paid ARMPU
$12.1
Previous year: $12.2
-1.0%
Gross Profit
$7.51B
Previous year: $6.59B
+14.0%
Cash and Equivalents
$14.2B
Previous year: $11.6B
+22.1%
Free Cash Flow
$3.43B
Total Assets
$206B
Previous year: $204B
+1.0%

Disney

Disney

Disney Revenue by Geographic Location

Forward Guidance

Disney expects combined streaming businesses to reach profitability in Q4 of FY24 and anticipates significant growth in free cash flow in fiscal 2024.

Positive Outlook

  • Combined streaming businesses expected to reach profitability in Q4 of FY24.
  • Free cash flow expected to grow significantly in fiscal 2024, approaching pre-pandemic levels.
  • Company is on track to achieve roughly $7.5 billion in cost reductions.
  • Domestic ESPN revenue and operating income grew year over year in both fiscal year 2022 and fiscal year 2023.
  • Experiences operating income increased by over 30% versus the prior-year quarter.

Challenges Ahead

  • Progress towards streaming profitability may not be linear from quarter to quarter.
  • Walt Disney World continues to manage against wage inflation.
  • Walt Disney World faces challenging comparisons to the prior year from the 50th anniversary celebration.
  • Decrease in domestic operating income was due to a decrease in advertising revenue primarily at the ABC Network and the owned TV stations.
  • Lower affiliate revenue reflecting a decline in subscribers, partially offset by higher contractual rates

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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