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DIS NYSE· Walt Disney Co
Earnings report Q4 2023

Steady Revenue Performance with Notable Growth in Direct-to-Consumer Subscription and Theme Parks

Segments of Revenue

The company's service revenues remained steady at $21 billion, with lower theatrical and TV/VOD distribution revenue being offset by higher direct-to-consumer (DTC) subscription revenue and increased revenues from theme parks and resorts. Product revenues saw a slight increase of 2%, amounting to $2.6 billion, driven by higher sales volumes of merchandise, food, and beverage at theme parks and resorts. The revenue breakdown by segment showed Entertainment bringing in $9.98 billion, Sports $4.83 billion, and Experiences $9.13 billion.

Strengths

The firm's strengths lie in its DTC subscription revenue and theme parks and resorts segment. The increase in DTC subscription revenue was due to increases in retail pricing at Disney+ Core and Hulu, and subscriber growth at both platforms. The theme parks and resorts segment benefited from higher sales volumes of merchandise, food, and beverage.

Challenges

The company faced challenges in its theatrical and TV/VOD distribution revenue. The decrease in theatrical distribution revenue was attributed to the performance of 'The Marvels' compared to 'Avatar: The Way of Water' and 'Black Panther: Wakanda Forever' in the prior-year quarter. The decrease in TV/VOD distribution revenue was due to lower sales of episodic content.

Noteworthy

The company saw a significant increase in advertising revenue, up 23% due to higher impressions, partially offset by an 11% decrease from lower rates at Hulu. The increase in impressions was attributed to airing more hours of International Cricket Council cricket programming, the growth of the U.S. ad-supported Disney+ service, and higher impressions at Hulu due to more units delivered.

Summary

Overall, the company maintained a steady revenue performance in the latest quarter, with notable growth in its DTC subscription and theme parks and resorts segments. However, it faced challenges in its theatrical and TV/VOD distribution revenue. The firm also saw a significant increase in advertising revenue due to higher impressions.

Source documents

Form 10-Q  filed on Feb 07, 2024
131 pages scanned

Reference data

Company financials Q4 revenue 0
Analyst estimates Q4 EPS missed by 0.00%
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