According to the Zhito Finance APP, Walt Disney (DIS.US) exceeded Wall Street expectations in fourth quarter performance, primarily due to the box office success of the Marvel summer blockbuster 'Deadpool and Wolverine', and holds an optimistic outlook for the upcoming fiscal year. The financial report shows that Disney's Q4 revenue rose to 22.6 billion USD, a 6% year-on-year increase, while net income jumped to 0.46 billion USD, marking significant growth compared to the same period last year. The adjusted eps is 1.14 USD, higher than Wall Street's forecast of 1.10 USD, and revenue slightly exceeded expectations. Additionally, Disney's free cash flow reached 4 billion USD, and operating profit increased by 23% year-on-year, reaching nearly 3.7 billion USD.

Specifically, according to Disney's latest financial report, its entertainment division's revenue grew by 14% year-on-year, reaching 10.8 billion USD, compared to 9.5 billion USD in the same period last year. This growth is attributed to strong performances from television networks, streaming services, and content sales and licensing. Meanwhile, the sports division's sales remained at 3.9 billion USD, while experience revenue (covering theme parks, video games, and consumer products) edged up by 1% to 8.2 billion USD.

In this quarter, the entertainment division's operating income doubled to 1.1 billion USD, a significant increase driven by Hulu's Emmy-nominated comedy 'Murder in the Building', the successful return of summer movies, particularly Marvel's first R-rated film 'Deadpool and Wolverine' and 'Alien: Romulus'. The 'Deadpool' movie achieved a global box office revenue of 1.3 billion USD.

Despite a 6% decline in television network revenue to 2.5 billion USD, with a 5% decline in the USA and a 12% decline internationally, mainly due to decreased affiliate revenue and advertising sales, streaming revenue grew by 15% to 5.8 billion USD in September, with streaming advertising sales up by 14%. Content sales and licensing revenue increased by 39% to 2.6 billion USD, and Disney's box office performance was particularly impressive.

In terms of streaming services, Disney+ saw a 2% growth in subscribers in the USA and Canada, reaching 56 million, while international users (excluding Disney+ Hotstar) grew by 5% to 66.7 million. Disney+ Hotstar subscribers increased by 1% to 35.9 million. Hulu's subscriber count reached 52 million, with Live TV + streaming subscribers numbering 4.6 million, while streaming subscribers amounted to 47.4 million. Disney+ has over 0.1227 billion subscribers outside of india, an increase of 4.4 million from the previous quarter. Disney+, Hulu, and ESPN+ achieved operating profit of 0.321 billion USD this quarter, marking a profit for the second consecutive quarter.

However, Disney's experience division revenue fell by 6% to 1.66 billion USD. Operating income from international theme parks decreased by 32%, reflecting the costs of new attractions and competition from the Paris Olympics. The sports division's operating income dropped by 5% to 0.929 billion USD as production costs for ESPN's college football broadcasts rose.

Despite this, disney still expects adjusted eps for fiscal year 2025 to achieve high single-digit growth and plans to repurchase stocks worth 3 billion dollars. In addition to the fiscal year 2025 forecast, disney also stated that it expects adjusted eps for fiscal years 2026 and 2027 to achieve double-digit growth. Although it is expected that the number of core subscribers for Disney+ will slightly decline due to the price increase in October 2024, the company is confident in the long-term prospects of the business and is prepared for growth.

Since returning to the company as CEO in November 2022, Bob Iger has actively pursued cost-cutting measures and is committed to revitalizing disney's film and television division after a period of challenges. In a statement, Iger said that thanks to significant progress made by the company, disney has successfully overcome many challenges and turmoil, is prepared for future growth, and is confident about the outlook.

In the fourth quarter, disney achieved a series of accomplishments: the film studio had one of its best quarters in history, the profitability of the streaming business improved, the company won a record 60 Emmy awards, sports broadcasting maintained strong momentum, and the experience division launched a series of impressive new projects. Iger added that disney's global strategy and focus on short-term and long-term business management make it stand out in the industry, leveraging its deep and broad entertainment assets for substantial returns while advancing company goals.

Disney's chief financial officer Hugh Johnston emphasized in an interview that the company's strategy is not only effective but also yields significant results, and they have a clear understanding of the outcomes these strategies may bring. The implementation of these strategies, along with the company's success in content innovation and digital transformation, has laid a solid foundation for disney's future development.

Overall, disney achieved impressive performance in the fourth quarter, with improved profitability in the streaming business and growth in the number of subscribers. Although the experience and sports departments experienced a decline in performance, disney remains optimistic about the future and plans to continue advancing its growth strategy.