The Walt Disney Company's financial performance for the third quarter of fiscal year 2024 demonstrated significant growth and progress across various segments. The company reported a revenue of $23.155 billion, reflecting a 4% increase from $22.330 billion in Q3 2023. For the nine months ended June 29, 2024, revenues increased by 2% to $68.787 billion compared to $67.657 billion in the same period of the previous year.
Income before income taxes surged to $3.093 billion, a substantial improvement from a loss of $134 million in Q3 2023. Additionally, total segment operating income rose by 19% to $4.225 billion, compared to $3.559 billion in the prior-year quarter, and for the nine months, it increased by 21% to $11.946 billion from $9.887 billion. Disney's diluted earnings per share (EPS) was $1.43, marking a significant turnaround from a loss of $0.25 in Q3 2023, with adjusted diluted EPS, excluding certain items, growing by 35% to $1.39 from $1.03. However, cash flow metrics showed a decline, with cash provided by operations decreasing by 7% to $2.602 billion and free cash flow dropping by 24% to $1.237 billion.
In the Entertainment segment, revenues increased by 4% to $10.580 billion from $10.127 billion, while operating income more than doubled to $1.201 billion from $408 million. This improvement was driven by better results in Direct-to-Consumer (DTC) and Content Sales/Licensing. The DTC segment, in particular, saw revenues rise by 15% to $5.805 billion, with a significant reduction in operating losses from $505 million to $19 million, indicating a 96% improvement. The Sports segment reported a revenue increase of 5% to $4.558 billion from $4.335 billion. However, operating income decreased slightly by 6% to $802 million from $854 million due to higher programming costs, partially offset by increased revenues.
The Experiences segment reported a revenue growth of 2% to $8.386 billion from $8.198 billion, while operating income declined by 3% to $2.222 billion from $2.297 billion. This decline was attributed to a moderation in domestic demand and impacts from international markets, including Disneyland Paris and cyclical softening in China. Despite the challenges faced in this segment, Disney's streaming services showed notable progress. Disney+ core subscribers (excluding Disney+ Hotstar) grew from 117.6 million to 118.3 million, and Hulu's total subscribers increased from 50.2 million to 51.1 million. However, the average monthly revenue per paid subscriber for Disney+ (Domestic) decreased from $8.00 to $7.74, while Hulu's SVOD Only saw an increase from $11.84 to $12.73.
“Our performance in Q3 demonstrates the progress we’ve made against our four strategic priorities across our creative studios, streaming, sports, and Experiences businesses,” said Robert A. Iger, Chief Executive Officer, The Walt Disney Company. “This was a strong quarter for Disney, driven by excellent results in our Entertainment segment both at the box office and in DTC, as we achieved profitability across our combined streaming businesses for the first time and a quarter ahead of our previous guidance. Despite softer third quarter performance in our Experiences segment, adjusted EPS for the company was up 35%, and with our complementary and balanced portfolio of businesses, we are confident in our ability to continue driving earnings growth through our collection of unique and powerful assets.”
Related News
