The Walt Disney Company (Disney) reported a mixed financial performance for the quarter ended March 30, 2024. Total revenues increased by 1% year-over-year to $22.083 billion, driven by higher Direct-to-Consumer (DTC) subscription revenue and increased theme park and resort revenue, offset by lower theatrical distribution revenue. Net income attributable to Disney decreased to a loss of $20 million compared to income of $1.271 billion in the prior-year quarter, primarily due to goodwill impairments of $2.052 billion related to the Star India Transaction and entertainment linear networks. Diluted earnings per share (EPS) decreased to a loss of $0.01 from $0.69 in the prior-year quarter. The Entertainment segment saw a 5% decrease in revenues due to lower theatrical and TV/VOD distribution revenue, partially offset by...Show More

The Walt Disney Company (Disney) reported a mixed financial performance for the quarter ended March 30, 2024. Total revenues increased by 1% year-over-year to $22.083 billion, driven by higher Direct-to-Consumer (DTC) subscription revenue and increased theme park and resort revenue, offset by lower theatrical distribution revenue. Net income attributable to Disney decreased to a loss of $20 million compared to income of $1.271 billion in the prior-year quarter, primarily due to goodwill impairments of $2.052 billion related to the Star India Transaction and entertainment linear networks. Diluted earnings per share (EPS) decreased to a loss of $0.01 from $0.69 in the prior-year quarter. The Entertainment segment saw a 5% decrease in revenues due to lower theatrical and TV/VOD distribution revenue, partially offset by subscription revenue growth. The Sports segment's operating income decreased by 2% to $778 million, while the Experiences segment's operating income increased by 12% to $2.286 billion, driven by growth at international and domestic parks and experiences. Disney's cash flow and ability to service debt are dependent on earnings from its subsidiaries and the distribution of those earnings. The company's financial condition remains strong, with adequate resources to fund ongoing operations, contractual obligations, debt maturities, and future capital expenditures. Disney faces various risks, including changes in regulations, which could impact the profitability of its businesses. Legal proceedings and tax matters could also materially affect future operations.