Summary
The Walt Disney Company (DIS) reported solid financial results for the fiscal third quarter ended June 29, 2024, with total revenues increasing by 4% year-over-year to $23.2 billion. This growth was primarily driven by a 4% increase in Services revenue, reaching $20.8 billion, fueled by higher Direct-to-Consumer (DTC) subscription and advertising revenues. Net income attributable to Disney swung to a profit of $2.6 billion, a significant improvement from a loss of $460 million in the prior-year quarter, resulting in diluted EPS of $1.43, up from a loss of $0.25. The Experiences segment continued its strong performance, with revenues up 2% to $8.4 billion, benefiting from increased theme park attendance and higher guest spending. The Entertainment segment saw a 4% revenue increase to $10.6 billion, primarily due to Direct-to-Consumer growth, while the Sports segment's revenue rose 5% to $4.6 billion, driven by advertising and subscription fee increases. For the nine-month period, total revenues grew 2% to $68.8 billion, and net income attributable to Disney more than doubled to $4.5 billion.
Financial Highlights
53 data points| Revenue | $23.16B |
| SG&A Expenses | $3.87B |
| Operating Expenses | $19.80B |
| Operating Income | $4.22B |
| Interest Expense | $509.00M |
| Net Income | $2.62B |
| EPS (Basic) | $1.44 |
| EPS (Diluted) | $1.43 |
| Shares Outstanding (Basic) | 1.82B |
| Shares Outstanding (Diluted) | 1.83B |
Key Highlights
- 1Total revenues for the quarter increased 4% to $23.2 billion, driven by growth across all segments, with Services revenue up 4% to $20.8 billion.
- 2Net income attributable to Disney swung to $2.6 billion from a net loss of $460 million in the prior-year quarter, with diluted EPS improving to $1.43 from a loss of $0.25.
- 3The Experiences segment generated $8.4 billion in revenue, a 2% increase, supported by higher theme park admissions and resort revenue.
- 4Direct-to-Consumer (DTC) subscription revenue grew 14% for the nine-month period to $14.0 billion, and the segment's operating loss significantly narrowed to $110 million from $2.1 billion.
- 5Disney+ Core paid subscribers increased by 1% sequentially to 118.3 million, and total paid subscribers across all DTC services reached 149.4 million.
- 6The company repurchased 14.2 million shares of common stock for $1.5 billion during the quarter, under a new $40 billion repurchase authorization.
- 7Restructuring and impairment charges decreased significantly to $0.7 billion for the nine-month period, down from $2.9 billion in the prior year, primarily due to a goodwill impairment related to Star India and linear networks.