01—Abstract
Summary
Summary of the 10-K filed November 14, 2024. Cited figures are marked; the original filing is the authoritative source.
The Walt Disney Company reported a robust increase in total revenues for fiscal year 2024, growing by 3% to $91.4 billiona.
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 billionb, 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%c 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 milliond). 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.
02—Key points
Key Highlights
- Total revenues increased by 3% to $91.4 billion in fiscal year 2024.
- Net 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.
- The 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.
- Experiences segment revenue grew 5% to $34.2 billion, driven by theme parks and resorts.
- Entertainment segment revenue increased 1% to $41.2 billion, with DTC revenue up 15%.
- Sports segment revenue grew 3% to $17.6 billion, with advertising and subscription fees showing strength.
- The 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.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2024filed November 14, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $91.36B$88.90B | +2.8% |
| SG&A Expenses | $15.76B$15.34B | +2.8% |
| Operating Expenses | $79.45B$79.91B | −0.6% |
| Operating Income | $15.60B$12.86B | +21.3% |
| Interest Expense | -$2.07B-$1.97B | −4.9% |
| Net Income | $4.97B$2.35B | +111.2% |
| EPS (Basic) | $2.72$1.29 | +110.9% |
| EPS (Diluted) | $2.72$1.29 | +110.9% |
| Shares Outstanding (Basic) | 1.82B1.83B | −0.2% |
| Shares Outstanding (Diluted) | 1.83B1.83B | +0.1% |
05—Questions
Frequently Asked Questions
What was the overall financial performance of The Walt Disney Company in fiscal year 2024?
The Walt Disney Company reported a strong financial performance in fiscal year 2024, with total revenues increasing by 3% to $91.4 billion. Net income attributable to Disney more than doubled, reaching $5.0 billion ($2.72 diluted EPS) compared to $2.4 billion ($1.29 diluted EPS) in fiscal year 2023. This improvement was driven by revenue growth across segments and a significant turnaround in the Direct-to-Consumer business towards profitability.
How did the Direct-to-Consumer (DTC) segment perform, and is it now profitable?
Yes, the Direct-to-Consumer segment has shown significant improvement and turned profitable in fiscal year 2024, reporting an operating income of $143 million. This is a substantial turnaround from the operating loss of $2.5 billion recorded in fiscal year 2023. The improvement was driven by a 15% increase in DTC revenues, reaching $22.8 billion, fueled by higher subscription fees and advertising revenue, alongside efforts to manage programming and production costs.
Which segments contributed most to the revenue growth?
The Experiences segment was a key driver of revenue growth, increasing by 5% to $34.2 billion, primarily due to higher theme park admissions and resort/vacation sales. The Direct-to-Consumer segment also showed strong revenue growth, up 15% to $22.8 billion. The Sports segment saw a 3% increase in revenue, while the Entertainment segment experienced a modest 1% revenue growth.
What is the outlook for capital expenditures in the upcoming fiscal year?
The company expects capital expenditures to increase significantly in fiscal year 2025, projecting approximately $8 billion compared to $5 billion in fiscal year 2024. This planned increase is largely due to continued investments in the Experiences segment, specifically in expanding the cruise ship fleet and developing new guest offerings at theme parks.
06—Continue