The Walt Disney Company (DIS.US) has reported a 6% increase in revenue to reach $22.6 billion in Q4, with strong growth in its streaming media business.

The Walt Disney Company's fourth-quarter performance exceeded Wall Street's expectations, mainly due to the box office success of the Marvel summer blockbuster "Deadpool and Wolverine," and the company's optimistic outlook for the future fiscal year. The financial report shows that Walt Disney Company's Q4 revenue increased to $22.6 billion, a 6% year-over-year increase, with net profit soaring to $460 million, a significant increase from the same period last year. Adjusted earnings per share were $1.14, higher than the Wall Street forecast of $1.10, and revenue was slightly higher than expected. In addition, Walt Disney Company's free cash flow reached $4 billion, operating profit increased by 23% year-over-year, reaching nearly $3.7 billion. Specifically, according to the latest financial report from Walt Disney Company, its entertainment division revenue increased by 14% year-over-year, reaching $10.8 billion, compared to $9.5 billion in the same period last year. This growth was due to strong performance in TV networks, streaming services, and content sales and licensing. Meanwhile, sports division sales remained at $3.9 billion, while revenue from experiences (including theme parks, video games, and consumer products) increased slightly by 1% to $8.2 billion. Within the entertainment division, operating income doubled in this quarter, reaching $1.1 billion, thanks to Hulu's Emmy-nominated comedy "Murder in the Building," successful summer movies, especially the Marvel R-rated film "Deadpool and Wolverine" and "Alien: Romulus." The "Deadpool" film grossed $1.3 billion in global box office revenue. Despite a 6% decline in TV network revenue to $2.5 billion, with a 5% decline in the U.S. and a 12% decline internationally, mainly due to decreases in affiliate revenue and ad sales, streaming revenue increased by 15% in September, reaching $5.8 billion, with streaming ad sales increasing by 14%. Content sales and licensing revenue increased by 39% to $2.6 billion, with Walt Disney Company's box office performance particularly impressive. In terms of streaming services, Disney+ saw a 2% increase in subscription users in the U.S. and Canada, reaching 56 million, while international users (excluding Disney+ Hotstar) increased by 5% to 66.7 million. Disney+ Hotstar subscription users increased by 1% to 35.9 million. Hulu subscription users reached 52 million, with 4.6 million for Live TV+ streaming and 47.4 million for streaming. Disney+ subscription users outside of India exceeded 122.7 million, an increase of 4.4 million from the previous quarter. Disney+, Hulu, and ESPN+ generated $321 million in operating profit this quarter, marking the second consecutive quarter of profitability. However, the revenue of Walt Disney Company's experiences division decreased by 6% to $1.66 billion. International theme park operating income decreased by 32%, reflecting the cost of new attractions and the competitive impact of the Paris Olympics. Sports division operating income decreased by 5% to $929 million, with production costs for ESPN's college football broadcasts rising. Nonetheless, Walt Disney Company still expects high-single-digit growth in adjusted earnings per share for fiscal year 2025 and plans to repurchase $3 billion worth of stocks. In addition to the 2025 fiscal year forecast, Walt Disney Company also stated that adjusted earnings per share are expected to achieve double-digit growth in fiscal years 2026 and 2027. Despite expectations of a slight decrease in core Disney+ subscription users next quarter due to the price increase in October 2024, the company remains confident in the long-term prospects of its business and is prepared for growth. Bob Chapek, who returned to the company as CEO in November 2022, actively implemented cost-cutting measures and focused on revitalizing Walt Disney Company's film and television departments after a challenging period. Chapek stated that, thanks to the significant progress the company has made, Walt Disney Company has successfully overcome many challenges and uncertainties, positioning itself for future growth and showing confidence in its prospects. In the fourth quarter, Walt Disney Company achieved a series of accomplishments: the film studio had one of its best quarters in history, profitability in streaming improved, the company won a record 60 Emmy awards, sports broadcasting maintained strong momentum, and the experiences division launched a series of impressive new projects. Chapek added that Walt Disney Company's strategies and focus on short-term and long-term business management set it apart in the industry, leveraging its deep and broad entertainment assets to realize substantial returns and advance the company's goals. Walt Disney Company CFO Hugh Johnston emphasized in an interview that the company's strategies have not only been effective but also had a significant impact, and they have a clear understanding of the results that these strategies may bring. The implementation of these strategies, along with the company's success in content innovation and digital transformation, has laid a solid foundation for Walt Disney Company's future development. Overall, Walt Disney Company achieved remarkable performance in the fourth quarter, with improved profitability in its streaming business and growth in subscription users. Despite declines in the experiences and sports divisions, Walt Disney Company remains optimistic about the future and plans to continue advancing its growth strategies.