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Sep 28, 2024
Disney Q4 2024 Earnings Report
Disney's Q4 2024 earnings showcased revenue growth and improved profitability in streaming, driven by strong performance in the Entertainment segment and box office hits.
Key Takeaways
The Walt Disney Company reported a 6% increase in revenues for Q4 2024, reaching $22.6 billion. Diluted EPS increased by 79% to $0.25, and adjusted EPS grew by 39% to $1.14. The Entertainment segment saw significant operating income improvement, and the combined DTC streaming businesses achieved operating income of $321 million. Disney+ Core subscribers increased by 4.4 million, reaching over 120 million.
Revenues increased by 6% to $22.6 billion, and diluted EPS increased by 79% to $0.25.
Entertainment segment operating income improved significantly by $0.8 billion versus the prior-year quarter.
Combined DTC streaming businesses improved profitability with operating income of $321 million.
Disney+ Core paid subscribers increased by 4.4 million over the prior quarter.
Disney
Disney
Disney Revenue by Segment
Disney Revenue by Geographic Location
Revenue by Segment
Entertainment Revenue
CapyFin.comSports Revenue
CapyFin.comExperiences Revenue
CapyFin.comRevenue by Geographic Location
Domestic Revenue
CapyFin.comInternational Revenue
CapyFin.com Forward Guidance
Disney anticipates high-single digit adjusted EPS growth in fiscal 2025, approximately $15 billion in cash provided by operations, and approximately $8 billion of capital expenditures. They are targeting dividend growth that tracks earnings growth and $3 billion in stock repurchases.
Positive Outlook
- High-single digit adjusted EPS growth compared to fiscal 2024.
- Approximately $15 billion in cash provided by operations.
- Target dividend growth that tracks our earnings growth.
- Targeting $3 billion in stock repurchases.
- Double digit percentage segment operating income growth compared to fiscal 2024, weighted to the first half of the year for Entertainment.
Challenges Ahead
- Modest decline in Q1 Disney+ Core subscribers versus Q4.
- Q1 operating income adversely impacted by approximately $130 million due to Hurricanes Helene and Milton and approximately $90 million due to Disney Cruise Line pre-launch costs.
- Entertainment DTC operating income increase includes a comparison to an adverse impact of our India DTC business of approximately $200 million on fiscal 2024 Entertainment DTC results.
- Sports operating income is expected to decrease approximately 10% adjusting for the impact of our India business on Sports’ fiscal 2024 results.
- Q1 Content Sales/Licensing and Other operating income relatively in-line with Q4
Revenue & Expenses
Visualization of income flow from segment revenue to net income