Summary
The Walt Disney Company's fiscal year 2023 10-K filing reveals a year of revenue growth, driven primarily by the strong performance of its Experiences segment, which saw significant increases in theme park admissions and resort bookings. However, the company's net income and diluted earnings per share from continuing operations saw a decline compared to the previous year, largely impacted by substantial restructuring and impairment charges, particularly a significant content impairment charge of $2,577 million and goodwill impairments totaling $721 million. The Entertainment segment, while experiencing revenue growth in Direct-to-Consumer services, saw a decline in operating income due to increased programming and production costs and lower advertising revenue. The Sports segment reported a slight decrease in revenue, with affiliate fees and advertising down, though subscription revenue for ESPN+ saw robust growth. The company's strategic focus on its Direct-to-Consumer (DTC) offerings continues, with Disney+ and Hulu showing subscriber growth, though the DTC segment as a whole still operates at a loss. Management is focused on cost management and strategic investments, particularly in the Experiences segment, anticipating future growth. Despite the reported net income decline, the company's overall revenue trajectory and the recovery of its Experiences segment present a mixed but potentially positive outlook for investors, contingent on managing DTC profitability and content costs.
Financial Highlights
28 data points| Revenue | $88.90B |
| SG&A Expenses | $15.34B |
| Operating Expenses | $79.91B |
| Operating Income | $12.86B |
| Interest Expense | -$1.97B |
| Net Income | $2.35B |
| EPS (Basic) | $1.29 |
| EPS (Diluted) | $1.29 |
| Shares Outstanding (Basic) | 1.83B |
| Shares Outstanding (Diluted) | 1.83B |
Key Highlights
- 1Total revenues increased by 7% to $88.9 billion in fiscal year 2023.
- 2Experiences segment revenue grew by 16% to $32.5 billion, driven by strong performance in theme parks and resorts.
- 3Net income attributable to Disney decreased by 25% to $2.4 billion, impacted by significant restructuring and impairment charges totaling $3.9 billion.
- 4Direct-to-Consumer (DTC) revenue increased by 11% to $19.9 billion, with Disney+ Core subscribers growing to 112.6 million, though the segment reported an operating loss of $2.5 billion.
- 5Linear Networks revenue decreased by 9% to $11.7 billion, with affiliate fees and advertising both declining.
- 6The company is investing in its Experiences segment, with capital expenditures expected to be approximately $6 billion in fiscal year 2024.
- 7Restructuring and impairment charges, including content impairment and goodwill impairments, significantly impacted profitability in fiscal year 2023.