The company said 2024 Q4 was one of the best quarters in the history of the film studio, with improved profitability in its 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 its Experiences segment.
The Walt Disney Company reported that its earnings for its fourth quarter (Q4) and full year ended September 28, 2024, increased by 6% for Q4 to $22.6bn from $21.2bn in Q3. The media and entertainment giant achieved 23% growth in total segment operating income for Q4 and 21% for the year, and 39% growth in adjusted EPS to $1.14 from $0.82 for Q4 and 32% to $4.97 from $3.76 for the year.
The company’s Entertainment segment operating income improved significantly, to $1.1bn, up $0.8bn in Q4 versus the prior-year quarter. Entertainment DTC (which includes Disney+ and Hulu) delivered 14% ad revenue growth in Q4, contributing to $253m in operating income, and the combined DTC streaming businesses improved profitability in Q4, with operating income of $321m.
Disney 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 (now streaming on Disney+) broke numerous box office records and helped drive $316m in operating income at Content Sales/Licensing and Other in Q4. The sports segment operating income was $0.9bn, a decline of $0.1bn 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 $0.1bn, or 1%, and operating income of $1.7bn was a decline of $0.1bn, 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.
Disney CEO, Bob Iger, commented: “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. 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.”
