Financial docs are now live at this link:
https://thewaltdisneycompany.com/app/uploads/2024/11/q4-fy24-earnings.pdf
Here are a few sections from the document:
Financial Results for the Quarter and Full Year:
- Revenues increased 6% for Q4 to $22.6 billion from $21.2 billion in the prior-year quarter, and 3% for the year to $91.4 billion from $88.9 billion in the prior year.
- Income before income taxes declined 6% to $0.9 billion in Q4 from $1.0 billion in the prior-year quarter and increased 59% for the year to $7.6 billion from $4.8 billion in the prior year.
- Diluted earnings per share (EPS) for Q4 increased 79% to $0.25 from $0.14 in the prior-year quarter, and for the year more than doubled to $2.72 from $1.29 in the prior year.
Key Points:
- We achieved strong 23% growth in total segment operating income([1]) for Q4 and 21% for the year, and 39% growth in adjusted EPS(1) to $1.14 from $0.82 for Q4 and 32% to $4.97 from $3.76 for the year.
- Entertainment segment operating income improved significantly, to $1.1 billion, up $0.8 billion in Q4 versus the prior-year quarter.
- Entertainment DTC delivered 14% ad revenue growth in Q4, contributing to $253 million in operating income, and our combined DTC streaming businesses improved their profitability in Q4, with operating income(1) of $321 million.
- We ended the quarter with 174 million Disney+ Core and Hulu subscriptions, and more than 120 million Disney+ Core paid subscribers, an increase of 4.4 million over the prior quarter.
- Pixar’s Inside Out 2 and Marvel’s Deadpool & Wolverine broke numerous box office records and helped drive $316 million in operating income at Content Sales/Licensing and Other in Q4.
- Sports segment operating income was $0.9 billion, a decline of $0.1 billion compared to the prior-year quarter. Domestic ESPN advertising revenue in Q4 grew 7% versus the prior-year quarter.
- The Experiences segment had record revenue and operating income for the full year. In Q4, Experiences revenue increased $0.1 billion, or 1%, and operating income of $1.7 billion was a decline of $0.1 billion, or 6% compared to the prior-year quarter. Domestic Parks & Experiences operating income increased in Q4, on comparable attendance to the prior-year quarter, driven by higher guest spending, partially offset by higher expenses and costs related to new guest offerings driven by Disney Cruise Line. International Parks & Experiences operating income declined in Q4.
Guidance and Outlook:
- We are confident in the long-term prospects for the business and believe we are well positioned for growth.
- Fiscal 2025:
- High-single digit adjusted EPS(1) growth compared to fiscal 2024
- Approximately $15 billion in cash provided by operations
- Approximately $8 billion of capital expenditures
- Target dividend growth that tracks our earnings growth
- Targeting $3 billion in stock repurchases
- Entertainment: Double digit percentage segment operating income growth compared to fiscal 2024, weighted to the first half of the year
- Entertainment DTC operating income increase of approximately $875 million versus fiscal 2024, which includes a comparison to an adverse impact of our India DTC business of approximately $200 million on fiscal 2024 Entertainment DTC results
- Modest decline in Q1 Disney+ Core subscribers versus Q4
- Q1 Content Sales/Licensing and Other operating income relatively in-line with Q4
- Sports: 13% segment operating income growth compared to fiscal 2024 on a reported basis. Adjusting for the impact of our India business on Sports’ fiscal 2024 results, operating income is expected to decrease approximately 10%
- Experiences: 6% to 8% segment operating income growth compared to fiscal 2024, weighted to the second half of the year
▪ Q1 operating income adversely impacted by approximately $130 million due to Hurricanes Helene and Milton and approximately $90 million due to Disney Cruise Line pre-launch costs
- Fiscal 2026(2):
- Double digit adjusted EPS(1) growth
- Double digit growth in cash provided by operations
- When comparing to our fiscal 2025 guide, we expect:
- Entertainment: Double digit percentage segment operating income growth; 10% operating margin for our Entertainment SVOD DTC businesses (excluding our Hulu Live DMVPD service)(1)
- Sports: Low single digit percentage segment operating income growth
- Experiences: High single digit percentage segment operating income growth
- Fiscal 2027:
◦ Double digit adjusted EPS(1) growth
Message From Our CEO:
“This was a pivotal and successful year for The Walt Disney Company, and thanks to the significant progress we’ve made, we have emerged from a period of considerable challenges and disruption well positioned for growth and optimistic about our future,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “Our solid performance in the fiscal fourth quarter reflected the success of our strategic efforts to improve quality, innovation, efficiency, and value creation. In Q4 we saw one of the best quarters in the history of our film studio, improved profitability in our streaming businesses, a record-breaking 60 Emmy Awards for the company, the continued power of live sports, and the unveiling of an impressive collection of new projects coming to our Experiences segment. As a result of our strategies and our focus on managing our businesses for both the near- and long-term, we are differentiating ourselves from traditional competitors, leveraging the deepest and broadest set of entertainment assets in the industry to drive attractive returns and further advance our goals.”
Domestic Parks and Experiences
The increase in operating income at our domestic parks and experiences reflected:
- Guest spending growth attributable to increases in per capita guest spending at our theme parks and cruise line
- Lower sales of Disney Vacation Club units
- Higher costs primarily due to inflation, new guest offerings, increased technology spending and higher operations support costs, partially offset by the comparison to depreciation in the prior-year quarter related to the closure of Star Wars: Galactic Starcruiser
International Parks and Experiences
International parks and experiences’ operating results decreased compared to the prior-year quarter due to:
- Lower volumes attributable to declines in attendance
- An increase in costs primarily due to new guest offerings and higher depreciation
- A decrease in guest spending due to lower theme park per capita guest spending, partially offset by an increase in per room spending at our resorts
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