The Walt Disney Company Reports 5% Revenue Increase to $24.69 Billion in Latest Quarter

The Walt Disney Company reported a 5% increase in total revenues for the fiscal quarter ended December 28, 2024, reaching $24.69 billion, compared to $23.55 billion in the same quarter of the previous year. The company's net income attributable to Disney rose to $2.55 billion, a 34% increase from $1.91 billion in the prior year, resulting in diluted earnings per share of $1.40, up from $1.04. This growth was primarily driven by higher operating income in the Entertainment segment, which saw revenues increase by 9% to $10.87 billion, bolstered by subscription revenue growth and improved theatrical distribution performance.

In terms of operational changes, Disney completed the Star India transaction on November 14, 2024, which has since affected the company's financial reporting. Following this transaction, Disney began recognizing its 37% share of the India joint venture's results in "Equity in the income of investees." The company also recorded a restructuring and impairment charge of $143 million related to this transaction. Additionally, Disney's interest expense increased significantly, rising to $367 million from $246 million, largely due to higher debt levels and interest rates.

Disney's direct-to-consumer segment, which includes Disney+ and Hulu, reported a 9% revenue increase to $6.07 billion, with subscription fees growing by 12%. The number of paid subscribers for Disney+ and Hulu has been a focal point, with Disney+ seeing a rise in average monthly revenue per subscriber. However, the segment also faced challenges, including a decrease in advertising revenue attributed to the absence of significant cricket events in the current quarter compared to the prior year.

Geographically, Disney's revenues from the Americas accounted for the majority, totaling $19.88 billion, while Europe and Asia Pacific contributed $2.85 billion and $1.95 billion, respectively. The company reported a slight decline in attendance at domestic parks, impacted by adverse weather conditions, but international parks experienced growth. Disney's total assets increased to $197.05 billion, with cash and cash equivalents at $5.49 billion as of the end of the quarter.

Looking ahead, Disney anticipates continued investment in its content and theme parks, with capital expenditures projected to rise to approximately $8 billion in fiscal 2025. The company remains focused on enhancing its direct-to-consumer offerings and expanding its global reach, despite facing challenges from market conditions and competition.