Disney Cfo Addresses Mixed Q3 Results Amid Industry Shifts

Disney Q3 Earnings: Streaming Struggles Amidst Growth

Key Points:

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• Disney reported third-quarter fiscal 2024 adjusted earnings of 1.39 per share, exceeding Wall Street estimates.
• Disney+ subscriber growth slowed, reflecting ongoing streaming competition.
• Revenue from Disney's theme parks and experiences surged, driving overall growth.

Breaking Down the Earnings

The Walt Disney Company (DIS) reported strong financial results for its third quarter of fiscal 2024, driven by robust growth in its theme park business and the success of its latest animated film, "Inside Out 2."

Streaming:

Disney's streaming segment faced challenges as growth in Disney+ subscribers slowed. The platform added 2.5 million subscribers globally, significantly lower than the previous quarter's 12.1 million additions. This slowdown highlights the intense competition in the streaming market, with rival platforms offering compelling content and competitive pricing.

Parks and Experiences:

Disney's theme parks and experiences continued to perform exceptionally well, contributing significantly to overall growth. Revenue from this segment surged by 25%, driven by increased attendance and higher spending per guest. The success of Disney's theme parks demonstrates the enduring appeal of its iconic characters and immersive experiences.

Earnings Highlights:

* Adjusted earnings per share: $1.39, surpassing analysts' estimates of $1.37 * Revenue: $23.5 billion, a 9% increase year-over-year * Disney+ subscribers: 164.9 million, up from 161.8 million last quarter * Disney's fiscal 2024 revenue outlook: $87 billion to $93 billion (unchanged) * Disney's fiscal 2024 adjusted earnings per share outlook: $5.05 to $5.55 (increased)

Executive Commentary:

"In the third fiscal quarter of 2024 we achieved strong double-digit percentage growth of 19%," said Bob Iger, CEO of The Walt Disney Company. "This was driven by excellent results in our domestic theme parks and experiences, strong growth at ESPN, and continued contributions from our streaming services."