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10-KPeriod: FY2024

Walt Disney Co Annual Report, Year Ended Sep 28, 2024

Filed November 14, 2024For Securities:DIS

Summary

The Walt Disney Company reported a robust increase in total revenues for fiscal year 2024, growing by 3% to $91.4 billion. This growth was primarily driven by a 3% increase in service revenues, bolstered by higher subscription fees from Direct-to-Consumer (DTC) services, increased park and experiences revenue, and improved advertising income. Net income attributable to Disney saw a significant surge of over 100%, reaching $5.0 billion, or $2.72 per diluted share, up from $2.4 billion ($1.29 per share) in the prior year. This substantial improvement in profitability was largely attributed to enhanced operating income within the Entertainment segment and the successful transition of the Direct-to-Consumer business towards profitability. Key segments demonstrated varied performance. Experiences continued its strong trajectory with a 5% revenue increase, primarily driven by theme park admissions and resort/vacation sales. The Sports segment saw a modest 3% revenue increase, with growth in advertising and subscription fees offsetting declines in affiliate fees. The Entertainment segment's revenue grew 1%, with Direct-to-Consumer showing a significant 15% increase in revenue, driven by subscription fees and advertising, and importantly, transitioning from a substantial loss to a small operating income ($143 million). Linear Networks experienced a 9% revenue decline. Despite these mixed segment results, overall revenue growth and strong cost management contributed to the substantial net income improvement.

Financial Statements
Beta
Revenue$91.36B
SG&A Expenses$15.76B
Operating Expenses$79.45B
Operating Income$15.60B
Interest Expense-$2.07B
Net Income$4.97B
EPS (Basic)$2.72
EPS (Diluted)$2.72
Shares Outstanding (Basic)1.82B
Shares Outstanding (Diluted)1.83B

Key Highlights

  • 1Total revenues increased by 3% to $91.4 billion in fiscal year 2024.
  • 2Net income attributable to Disney significantly increased by over 100% to $5.0 billion ($2.72 EPS) from $2.4 billion ($1.29 EPS) in the prior year.
  • 3The Direct-to-Consumer (DTC) segment turned profitable, reporting an operating income of $143 million compared to a loss of $2.5 billion in the prior year.
  • 4Experiences segment revenue grew 5% to $34.2 billion, driven by theme parks and resorts.
  • 5Entertainment segment revenue increased 1% to $41.2 billion, with DTC revenue up 15%.
  • 6Sports segment revenue grew 3% to $17.6 billion, with advertising and subscription fees showing strength.
  • 7The company expects fiscal year 2025 capital expenditures to be approximately $8 billion, an increase from $5 billion in fiscal year 2024, signaling continued investment in growth initiatives, particularly in the Experiences segment.

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