01—Abstract
Summary
Summary of the 10-Q filed August 7, 2024. Cited figures are marked; the original filing is the authoritative source.
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 billiona.
This growth was primarily driven by a 4% increase in Services revenue, reaching $20.8 billionb, 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 billionc, 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.
02—Key points
Key Highlights
- Total 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.
- Net 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.
- The Experiences segment generated $8.4 billion in revenue, a 2% increase, supported by higher theme park admissions and resort revenue.
- Direct-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.
- Disney+ Core paid subscribers increased by 1% sequentially to 118.3 million, and total paid subscribers across all DTC services reached 149.4 million.
- The company repurchased 14.2 million shares of common stock for $1.5 billion during the quarter, under a new $40 billion repurchase authorization.
- Restructuring 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.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed August 7, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $23.16B$22.33B | +3.7% |
| SG&A Expenses | $3.87B$3.87B | −0.1% |
| Operating Expenses | $19.80B$19.69B | +0.6% |
| Operating Income | $4.22B$3.56B | +18.7% |
| Interest Expense | $509.00M$503.00M | +1.2% |
| Net Income | $2.62B-$460.00M | +669.8% |
| EPS (Basic) | $1.44$-0.25 | +676.0% |
| EPS (Diluted) | $1.43$-0.25 | +672.0% |
| Shares Outstanding (Basic) | 1.82B1.83B | −0.4% |
| Shares Outstanding (Diluted) | 1.83B1.83B | 0.0% |
05—Questions
Frequently Asked Questions
How did Disney's revenue perform in the third quarter compared to the previous year?
Disney's total revenues increased by 4% to $23.2 billion in the third quarter ended June 29, 2024, compared to $22.3 billion in the same period last year. This growth was primarily driven by the Services segment, which saw a 4% increase to $20.8 billion.
What was Disney's net income and EPS for the quarter?
Disney reported a net income attributable to The Walt Disney Company of $2.6 billion for the third quarter of fiscal 2024, a significant improvement from a net loss of $460 million in the prior-year quarter. Diluted earnings per share (EPS) rose to $1.43 from a loss of $0.25 in the prior-year period.
How did the Direct-to-Consumer (DTC) segment perform?
The DTC segment showed substantial improvement, with its operating loss narrowing to $19 million in the third quarter, compared to a loss of $505 million in the prior-year quarter. For the nine-month period, DTC revenues grew 14% to $17.0 billion, and the operating loss decreased significantly to $110 million from $2.1 billion. This improvement was driven by higher subscription fees and advertising revenue, coupled with subscriber growth.
What is the outlook for capital expenditures and share repurchases?
Disney expects its capital expenditures for fiscal year 2024 to be approximately $6 billion. The company also repurchased 14.2 million shares for $1.5 billion during the third quarter and has approximately 377 million shares remaining under its current repurchase authorization, with no expiration date. Management is targeting approximately $3 billion in share repurchases for fiscal year 2024.
06—Continue