This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Disney said it turned a profit on its combined streaming business for the first time, and a quarter ahead of schedule. Disney reported Wednesday better revenues than anticipated in the most recent quarter, atop a first profit in its streaming business, but its theme parks are coming under pressure. The mixed picture drove its ...

The Walt Disney Company (DIS) reported third-quarter fiscal 2024 adjusted earnings of $1.39 per share, which beat the Zacks Consensus Estimate by 15.8% and increased 35% year over year.Revenues rose 3.7% year over year to $23.15 billion and beat the consensus mark by 1.3%.Segment DetailsMedia and Entertainment Distribution revenues (45.7% of revenues) increased 4.5% year over year to $10.58 billion.Revenues from Linear Networks declined 7.3% year over year to $2.66 billion. Direct-to-Consumer revenues incre ...

Walt Disney (DIS) reported $23.16 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 3.7%. EPS of $1.39 for the same period compares to $1.03 a year ago.The reported revenue represents a surprise of +1.06% over the Zacks Consensus Estimate of $22.91 billion. With the consensus EPS estimate being $1.20, the EPS surprise was +15.83%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Key TakeawaysDisney shares slipped Wednesday even as the entertainment giant reported better third-quarter results than analysts had expected.The combined streaming business of ESPN+, Disney+, and Hulu turned a profit in the quarter, earlier than Disney expected.However, the company warned that lower demand for its Experiences segment including theme parks could continue over the next several quarters. The Walt Disney Co. (DIS) posted better third-quarter results than analysts had expected thanks to the suc ...

Financial Data and Key Metrics Changes - The company reported a 2% revenue growth in Q3 2024, driven by strong intellectual property (IP) in parks and a resilient audience [10] - The company expects a mid-single-digit decline in operating income for fiscal Q4, with a flattish revenue outlook for the parks segment [10][16] - Free cash flow guidance remains at $8 billion, with no material changes expected [20] Business Line Data and Key Metrics Changes - Attendance at domestic parks was flat in Q3, with per capita spending slightly up [10] - The Experiences segment, which includes parks and cruise ships, is expected to see flattish revenue in Q4 [10][16] - The company anticipates startup costs for new cruise ships to be over double in 2025 compared to this year, but expects quick payback from these investments [22] Market Data and Key Metrics Changes - The advertising market remains strong, with overall advertising growth of 8% for the quarter, and DTC streaming advertising up 20% [36] - The company noted a slight moderation in demand from lower-income consumers, while higher-income consumers are traveling internationally more [29] Company Strategy and Development Direction - The company is focusing on a balanced investment strategy across sports, scripted TV, and movies to enhance streaming value [18][19] - There is a strong emphasis on enhancing the Disney+ platform with new features and content to drive subscriber growth and pricing power [15] - The company is exploring strategic partnerships for ESPN to enhance content offerings [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the future of the streaming business, citing strong content performance and modest churn despite recent price increases [15] - The company is optimistic about the potential for growth in the Experiences segment due to ongoing investments [39] Other Important Information - The company is implementing a password-sharing initiative to enhance profitability and reduce churn [15][22] - The company is not planning significant changes to its licensing strategy, focusing instead on core IP [36] Q&A Session Summary Question: Theme parks demand and NBA contract monetization - Management noted a slight moderation in park demand but emphasized strong IP driving attendance, with expectations for a few quarters of similar results [10][11] Question: Disney+ outlook and pricing power - Management highlighted the success of streaming content and the addition of new features, expressing confidence in subscriber growth and pricing power [15][16] Question: Future content spending balance - Management indicated a significant investment across all content areas, with a focus on quality and IP value [18][19] Question: Free cash flow expectations - Management confirmed guidance of $8 billion for free cash flow, with no material changes expected [20] Question: Advertising demand and content licensing - Management reported a healthy advertising market, with growth across various sectors, and clarified that recent licensing increases were primarily due to box office success [36] Question: Theme parks revenue expectations - Management expects continued trends in park attendance and per capita spending, with international parks showing potential for recovery post-Olympics [29] Question: Growth impact from cruise ships and India deconsolidation - Management expressed confidence in the growth potential from cruise ship investments and indicated that details on India will be shared upon deal closure [39]

Disney reported weaker-than-expected results for its theme parks division in its latest earnings.It blamed the drop on weakening consumer demand, which it said was likely to continue.Americans are reigning in spending after being hammered by inflation, forcing companies to adapt. Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Go to newsletter preferences Thanks for signing up! Access your favorite top ...

Disney+ streaming service posts first profit. (Photo by Charley Gallay/Getty Images for Disney)Getty Images for DisneyKey Takeaways Stocks Move 1% Or More For 5th Day In A Row Disney Streaming Service Posts Profit Volatility Remains Elevated But Down SubstantiallyIt's been quite a week and it's only Wednesday. After significant drops across the board on Monday, stocks regained some ground on Tuesday. The S&P 500, Nasdaq Composite and Russell 2000 were all up around 1% for the day. The Dow Jones Industrial A ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Disney and NBCUniversal are locked in a dispute about how much the former must pay the latter for absorbing the rest of Hulu. Disney late last year paid Comcast’s NBCU a previously agreed upon floor price of $8.6 billion and both sides had their own bankers calculating how much more, if any, was owed. Not surprisingly, their numbers diverged. Disney’s camp figured it was in the clear, NBCU’s that another $5 billion was due. As provided for in the initial contract, the dispute was handed to a third party, ...

Financial Performance - Net income for the quarter ended July 1, 2023, was $(153) million, compared to $2,842 million for the same quarter in the previous year[7]. - Comprehensive income attributable to Disney for the nine months ended June 29, 2024, was $4,350 million, up from $1,796 million for the same period last year[7]. - Comprehensive income for the quarter ended June 29, 2024, was $2,922 million, reflecting an increase from the previous quarter's comprehensive income of $2,676 million[13]. - The company reported a net income of $6,621 million for the nine months ended June 29, 2024, compared to $3,762 million for the same period in the prior year, representing a 76% increase[150]. - Net income attributable to Disney for the nine-month period increased $2.4 billion to $4.5 billion; EPS increased to $2.46 from $1.14 in the prior-year period[134]. Revenue and Growth - Total revenues for the nine months ended June 29, 2024, were $68,787 million, compared to $67,657 million in the prior year, reflecting a growth of 1.7%[27]. - Total revenues for the quarter ended June 29, 2024, were $23.155 billion, an increase from $22.330 billion for the quarter ended July 1, 2023, representing a growth of 3.7%[37]. - Total segment revenues for the quarter ended June 29, 2024, were $23,155 million, an increase from $22,330 million in the same quarter last year, representing a growth of 3.7%[27]. - Direct-to-Consumer revenues grew by 15% to $5,805 million for the quarter ended June 29, 2024, driven by subscription revenue growth[157]. - Total revenues for Content Sales/Licensing decreased to $2,112 million from $2,210 million, a 4% decline[3]. Expenses and Costs - Total produced and licensed content costs for the quarter ended June 29, 2024, were $6,197 million, compared to $6,088 million for the quarter ended July 1, 2023, reflecting a 1.8% increase[64]. - Cost of services for the quarter increased 2%, or $0.3 billion, to $13.2 billion due to higher sports programming and production costs[123]. - Total operating expenses for ESPN rose by 10% from $3,164 million to $3,482 million[203]. - Total programming and production costs decreased by 11% to $984 million for the quarter ended June 29, 2024, compared to $1,105 million for the prior year[165]. Assets and Liabilities - Total current assets decreased from $32,763 million as of September 30, 2023, to $25,493 million as of June 29, 2024[8]. - Total assets decreased from $205,579 million as of September 30, 2023, to $197,772 million as of June 29, 2024[8]. - Total liabilities decreased from $101,622 million as of September 30, 2023, to $92,469 million as of June 29, 2024[8]. - Cash and cash equivalents decreased from $14,182 million as of September 30, 2023, to $5,954 million as of June 29, 2024[8]. Shareholder Returns - The company repurchased $2,523 million of common stock during the financing activities for the nine months ended June 29, 2024[10]. - Common stock repurchases for the quarter totaled $1,522 million, indicating a significant return of capital to shareholders[13]. - The company paid dividends totaling $5 million during the quarter, consistent with its commitment to return value to shareholders[13]. - The Board of Directors declared a cash dividend of $0.30 per share ($0.5 billion) for the second half of fiscal 2023, and $0.45 per share ($0.8 billion) for the first half of fiscal 2024[73]. Segment Performance - The Entertainment segment reported an operating income of $1,201 million for the quarter, a substantial increase from $408 million in the prior year, marking a growth of 194.6%[27]. - Sports segment revenues increased to $4,558 million for the quarter, compared to $4,335 million in the same quarter last year, showing a growth of 5.2%[27]. - Experiences segment revenues reached $8,386 million, up from $8,198 million year-over-year, indicating a growth of 2.3%[27]. - Entertainment segment revenue for the quarter ended June 29, 2024, was $10,580 million, a 4% increase from $10,127 million in the prior year[150]. Legal and Regulatory Matters - The company faced a consolidated complaint in a securities class action lawsuit, alleging misstatements regarding costs and subscriber growth of the Disney+ platform[88]. - The company intends to vigorously defend against various legal actions, including antitrust lawsuits related to pricing and packaging provisions with virtual multichannel video distributors[90]. Impairments and Charges - The company reported a goodwill impairment of $2,038 million for the nine months ended June 29, 2024[10]. - The company recognized a non-cash goodwill impairment charge of $1.3 billion related to the Star India transaction, reflecting cumulative foreign currency translation losses of approximately $0.8 billion[40]. - Restructuring and impairment charges for the nine months ended June 29, 2024, totaled $2,052 million, a decrease from $2,871 million in the prior year[145]. Cash Flow and Financing - Cash provided by operations for the nine months ended June 29, 2024, was $8,453 million, compared to $5,064 million for the same period last year[10]. - The Company’s total borrowings as of June 29, 2024, amount to $47,584 million, with significant reductions in commercial paper and U.S. dollar denominated notes[48]. - The Company met its financial covenant for bank facilities by a significant margin as of June 29, 2024, with total committed capacity of $12,250 million[48]. Subscriber Metrics - Paid subscribers for Disney+ Core increased by 12% to 118.3 million compared to the prior year[175]. - Domestic Disney+ average monthly revenue per paid subscriber decreased from $8.00 to $7.74, a 3% decline compared to the previous quarter[1]. - Hulu SVOD Only average monthly revenue per paid subscriber rose from $11.84 to $12.73, an 8% increase attributed to higher advertising revenue[1].