The Walt Disney Co., a diversified international family entertainment and media enterprise founded in 1923, shall release its fiscal full year and Q4 2024 earnings result on 14th November (Thursday), before market open. The company operates via two main segments: Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP). The former covers the company’s global film, television content production and distribution activities, while the latter encompasses parks and experiences and consumer products.
Walt Disney Revenue (in billion US dollars). Source: Statista
Walt Disney generated $23.2B revenue in Q3 2024, up nearly 4.9% from the previous quarter, and up 3.7% from the same period last year. In general, revenue growth remains stagnant year-on-year.
According to the official report, revenue generated from the Disney Parks segment was up 2% (y/y) to $8.4B. However, segment operating income was down -3% (y/y) to $2.2B, following higher costs driven by inflation, increased technology spending, new guest offerings and increased depreciation.
Revenues and Operating Income: Disney Media and Entertainment. Source: Walt Disney Report
On the contrary, the company’s Media and Entertainment Distribution was up 4% (y/y) in revenue to $10.6B. Both domestic and international channels reported losses following continuous declining affiliate and advertising revenue, leading Linear Networks down -7% (y/y) to $2.6B. Operating income for the segment was down -6% (y/y), to $966 million. Revenue for Content Sales/Licensing and Other was down -4% (y/y) to $2.1B, while operating income has improved to $254 million (was showing losses of -$112 million in the same period last year), buoyed by higher theatrical distribution (Inside Out 2 being the highest-grossing animated film at over $1.5B at the global box office) and increased TV/VOD distribution results.
Recently, Walt Disney announced a new business unit – the Office of Technology Enablement, which is aimed at exploring the potential use of AI and other emerging technologies across its movie, television and theme park divisions. Such a move shall pave its way to advance in AI and XR (mixed reality) that will continue to positively impact consumer experiences, creative endeavors and businesses for years to come.
Disney Plus Subscribers. Source: Statista
The company reported 153.8 million in Disney Plus subscribers, an increase of 200,000 in the number from the previous quarter, and up 7.7 million from the same period last year. Nevertheless, the company has exceeded its initial goal of 60 to 90 million users by 2024, which was reached in less than two years of the highly anticipated streaming service being launched in November 2019.
Average Monthly Revenue Per Paid Subscriber. Source: Walt Disney
By average monthly revenue per paid subscriber (ARPU), domestic Disney+ reported a loss of 26 cents from the previous quarter to $7.74, whereas International Disney+ reported an increase of 12 cents to $6.78. The former was the result of the impact of subscriber mix shifts; the latter, on the other hand, was buoyed by increased retail pricing, despite being partially offset by an unfavorable foreign exchange impact.
Walt Disney: Income Statement Evolution (Quarterly Data). Source: Market Screener
According to projections by S&P Global Market Intelligence, sales revenue is expected to reach $22.5B in the coming quarter, down -2.9% from the previous quarter, but up 5.9% from the same period last year. EBITDA is expected to reach $4.3B, down nearly -26% from the previous quarter. Net income, on the other hand, is expected to be down towards $1.7B, from the previous quarter’s $2.6B (was only $264 million in Q4 2023). Throughout FY 2024, both net sales and net income are expected to reach $91.4B and $6.2B, respectively. This would display sluggish growth at less than 3% for the former, whereas the latter would display significant improvement at over 165%.
Technical Analysis:
The #Disney share price gapped higher post the US election, currently testing resistance $99 (FR 38.2% that extends from the highs in April to the lows in August this year). A break above this level may indicate bullish continuation, towards the next resistance at $104 (FR 50.0%). On the other hand, the 100-day SMA and $98 (FR 23.6%) serve as a solid support, followed by minor support at $89. MACD indicator forms a golden cross above 0 line.
Click here to access our Economic Calendar
Larince Zhang
Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
