Walt Disney Co SEC 10-K Report
Nov 14, 2024, 17:28 GMT+5:30
DIS +1.71%
Financial Highlights
- Total Revenues: $91,361 million, a 3% increase from $88,898 million in the prior year, driven by higher subscription revenue, parks and experiences, and advertising.
- Operating Income: $7,569 million, a 59% increase from $4,769 million, reflecting higher operating income at Entertainment.
- Net Income: $5,773 million, a 70% increase from $3,390 million.
- Net Income Attributable to Disney: $4,972 million, a greater than 100% increase from $2,354 million.
- Diluted Earnings Per Share Attributable to Disney: $2.72, a greater than 100% increase from $1.29.
Business Highlights
The Walt Disney Company operates in three segments: Entertainment, Sports, and Experiences.
- Entertainment Segment: Includes global film and episodic content production, distribution, and key business lines like Linear Networks, Direct-to-Consumer (DTC) services (Disney+, Hulu, Disney+ Hotstar), and Content Sales/Licensing.
- Sports Segment: Includes ESPN-branded TV channels, ESPN+ DTC service in the U.S., and Star-branded sports channels in India.
- Experiences Segment: Includes theme parks, resorts, Disney Cruise Line, and consumer products licensing.
Revenue Sources
- Subscription fees
- Advertising
- Affiliate fees
- Theatrical distribution
- TV/VOD distribution
- Licensing, ticket sales, live entertainment events, etc.
New Product Launches
- A new ESPN branded tile will launch on Disney+ in the U.S. in fiscal 2025.
- In Latin America, Disney+ merged with Star+ into a single offering in June 2024.
Future Outlook
Disney plans to produce or commission approximately 215 episodic and film titles in fiscal 2025, most of which will be distributed on Linear Networks, DTC platforms, or theatrically.
Strategic Initiatives
- Direct-to-Consumer (DTC) Investments: Disney continues to invest in Disney+, with significant partnerships, including a joint venture with Reliance Industries for Disney+ Hotstar in India.
- Capital Management: Repurchased 5,011,000 shares at $92.49 per share, and paid dividends totaling $1,366 million in fiscal 2024.
- Future Capital Plans: Plans for $3 billion in share repurchases and $8 billion in capital expenditures in fiscal 2025, focusing on cruise ship expansion and new theme park offerings.
Challenges and Risks
- Economic Conditions: Recession or inflation could reduce demand and earnings, with inflationary pressures on labor costs.
- Currency Fluctuations: The strength of the U.S. dollar impacts international revenues.
- Technology & Consumer Preferences: Rapid technological changes and shifts in consumer preferences can affect demand and costs.
- Competitive Pressures: Increased competition from media and entertainment companies and new technologies like AI may affect market share and profitability.
- Regulatory Compliance: Compliance with privacy and data laws, along with new ESG regulations, can increase operational complexity and costs.
- Cybersecurity: Increasing cybersecurity threats and data breaches could disrupt services and damage Disney’s reputation.
- Labor Disputes: Potential work stoppages and disputes may disrupt operations and increase costs.
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