A statue of Walt Disney and Mickey Mouse stands successful a plot successful beforehand of Cinderella's Castle astatine the Magic Kingdom Park astatine Walt Disney World connected May 31, 2024, successful Orlando, Florida.
Gary Hershorn | Corbis News | Getty Images
Disney reported fiscal fourth-quarter earnings connected Thursday that topped expert expectations for net but missed connected gross arsenic the company's entertainment concern was weighed down by its TV networks and a lackluster theatrical movie slate.
Disney banal fell much than 3% successful premarket trading.
Here is what Disney reported for the play ended Sept. 27, compared with what Wall Street expected, according to LSEG:
- Earnings per share: $1.11 adjusted vs. $1.05 expected
- Revenue: $22.46 cardinal vs. $22.75 cardinal expected
Net income for the 4th was $1.44 billion, oregon 73 cents a share, much than treble the $564 million, oregon 25 cents per share, that Disney reported successful the aforesaid play past year. Adjusting for one-time items Disney reported net per stock of $1.11.
The company's wide gross for the 4th was astir $22.5 billion, somewhat little than the aforesaid 4th past year.
"Overall we're leaving the twelvemonth with a batch of momentum," Disney CFO Hugh Johnston told CNBC's "Squawk Box" regarding the company's streaming and experiences businesses.
Revenue for the amusement portion fell 6% from past twelvemonth to $10.21 billion, dragged down by the linear TV networks and theatrical releases.
Streaming remained the agleam spot successful the concern arsenic consumers continued to crook distant from the wage TV bundle. Operating income for the linear networks dropped 21% to $391 cardinal portion it roseate 39%, to $352 million, for streaming. The higher operating income for streaming occurred arsenic prices accrued for Disney's streaming services.
Advertising gross for the networks, which includes broadcast web ABC and wage TV channels similar FX, besides suffered.
DIsney's TV networks, including ESPN, person been unavailable for customers of Google's YouTube TV, a streaming supplier of the wage TV bundle since Oct. 31 owed to an ongoing carriage dispute between the 2 companies.
The flagship streaming work Disney+ added 3.8 cardinal paid subscribers, bringing its full to 131.6 million, portion Hulu had 64.1 cardinal customers. Disney has been successful the process of integrating Hulu — which it took afloat power of earlier this twelvemonth — into the Disney+ app.
This marks the past clip the institution volition report subscriber numbers and the mean gross per unit, oregon ARPU, for its streaming services, which includes Disney+ and Hulu.
Instead, Disney volition travel successful the footsteps of streaming behemoth Netflix, which earlier this twelvemonth stopped updating investors connected its subscriber count.
Revenue for Disney's sports division, namely ESPN, was up 3% to astir $4 billion, portion operating income was level astatine $898 cardinal erstwhile compared with the aforesaid play past year. ESPN's home operating income successful peculiar decreased owed to costs associated with the launch of the ESPN direct-to-consumer streaming app successful August, arsenic good arsenic higher programming costs.
Meanwhile, gross for the experiences segment, which consists of taxable parks, resorts and cruises, arsenic good arsenic user products, roseate 6% to $8.77 billion. Operating income for the conception was up 13% to $1.88 billion.
Disney attributed the maturation successful its cruise concern to its gains, contempt being offset by higher fleet enlargement costs. Disney's fleet volition expand erstwhile again aboriginal this month.
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