Disney's Revenue and Segment Performance: A Deep Dive

Overview

The Walt Disney Company (NYSE: DIS) reported impressive financial results for its fourth quarter and fiscal year ended October 2, 2021. The company's revenue surged, driven by strong performance across its entertainment, parks, and experiences segments.

Revenue Growth

Disney's total revenue for the twelve months ending March 31, 2024, reached a record high of $89.203 billion, marking a 25.5% increase year-over-year. This growth was fueled by robust demand for the company's streaming services, theme parks, and merchandise.

Entertainment Segment Dominance

The company's biggest revenue source was its entertainment segment, which generated revenues of over $40 billion. The segment includes Disney's film, television, and streaming businesses, which have seen significant growth in recent years.

In the first quarter of 2024, the Walt Disney Company's entertainment segment generated about $9.8 billion in revenue, representing a 9.8% increase compared to the same period in 2023.

Segment Performance

Disney's various business segments performed differently during the fiscal year:

• Media and Entertainment Distribution: This segment includes Disney's streaming services (Disney+, Hulu, and ESPN+), as well as its traditional television networks. Revenue grew by 6.2%, but operating income declined due to increased content and marketing expenses.
• Parks, Experiences, and Products: This segment includes Disney's theme parks, resorts, and merchandise. Revenue surged by 24.9%, driven by increased visitation to its theme parks and strong demand for its licensed products.
• Linear Networks: This segment includes Disney's traditional cable and broadcast television networks. Revenue declined by 3.6% as viewers continue to shift towards streaming platforms.

Financial Highlights

• Revenue: $23.2 billion for the fourth quarter, a 4% increase year-over-year.
• Adjusted Earnings Per Share (EPS): $1.39 for the third quarter, exceeding analyst estimates.
• Market Cap: $181.39 billion as of September 26, 2022.