The Walt Disney Company has released its first 2024 Earnings Report for the fiscal quarter ending 30th December, 2023 – and there’s plenty to be excited about.
Disney CEO Bob Iger chaired a conference call with Chief Financial Officer Hugh Johnston and various important stakeholders on 7th February, 2024. As well as running through the company’s first-quarter earnings, Iger and co. dropped several exciting announcements for upcoming projects.
The company's overall revenue was $23.55 billion, earning $1.04 per share. Below you can see a summary of Disney's Q1 earnings for yourself.
Theme Parks and Experiences
Theme Parks were one of the strongest areas for Disney. Overall, theme parks and experiences for Q1 of 2024 exceeded results in the same period of 2023, and every single Disney park made a profit.
Domestic operating income did suffer a decrease. This was largely in part due to lower attendance in parks and resorts at Walt Disney World following the 50th anniversary in the prior-year quarter. Disney also noted that while spending in the parks was up, this was offset by lower room rates at this resort.
Results at the Disneyland Resort were comparable to the prior-year quarter thanks to increased guest spending (higher ticket prices), a growth in attendance, and higher costs due to inflation within the park.
Disney Cruise Line also grew in the first fiscal quarter of 2024 due to increases in ticket prices and passenger cruise days.
Disney has reported growth in Asian markets, particularly due to increased attendance at Shanghai Disney Resort. This is because the park was open for the entire quarter as opposed to just 58 days in the prior-year as a result of COVID-19 closures. As a result, guest spending was also up in this period.
During the earnings call, Iger was asked about the rumors surrounding a fifth park at Walt Disney World following announcements that Disney would be doubling theme park investments – to which he responded, “We’re hard at work determining where to place our investments. You can assume that they’ll be placed all over [the parks].”
Other Highlights of Disney’s Q1 Report 2024
Streaming
Disney revealed that while Disney+ core subscribers decreased, as expected, by 1.3 million, Hulu subscribers increased by 1.2 million from the previous quarter.
It was also announced that the company will lean towards sports streaming going forward into Q2 and beyond.
During the earnings call, Iger confirmed that ESPN, Fox, and Warner Bros. would be launching a new streaming service in fall 2024 as an add-on to Hulu. This service would combine the likes of FIFA World Cup, NFL, Formula 1, NBA, and Major League Baseball in one affordable bundle and will target a younger audience.
Entertainment
Many of Disney’s major announcements during the earnings call came from the Entertainment sector.
As well as announcing Moana 2, releasing in cinemas in November 2024, Iger shared that Disney has acquired a small equity stake in EPIC Games (the company behind Fortnite).
The two entertainment giants are partnering to create a new gaming universe, with Iger stating, “This marks Disney’s biggest entry ever into the world of video games, and offers significant opportunities for growth and expansion.”
Disney also announced that starting March 15, 2024, Taylor Swift | The Eras Tour (Taylor’s Version) will debut exclusively on Disney+ with additional acoustic songs not featured in its theatrical release.
Report Summary
Overall, this earnings report looked fairly positive for the Walt Disney Company.
Iger said that they have “turned the corner and entered a new era” and stressed that Disney is on track to meet (or exceed) their increased savings target of $7.5 Billion by the end of the 2024 Fiscal Year.
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