The long-awaited big-screen bromance of fan-favourite Marvel heroes Deadpool & Wolverine has helped entertainment monolith Walt Disney Co (NYSE:DIS, ETR:WDP) deliver better-than-expect full-year financial results.
The Mouse House’s entertainment segment saw operating income rise to $3.92 billion, more than double from fiscal 2023.
Pixar’s Inside Out 2, which became the highest-grossing animation of all time after it premiered in June, also played a large part in the knock-out results.
“This was a pivotal and successful year for The Walt Disney Co (NYSE:DIS, ETR:WDP)mpany, and thanks to the significant progress we’ve made, we have emerged from a period of considerable challenges and disruption well positioned for growth and optimistic about our future,” said chief executive Bob Iger.
Disney’s experiences segment, which includes theme parks, grew operating income by 4%, reaching $9.27 billion for the full year. While US experiences fared well, international parks saw a 32% decline.
Disney’s streaming segment, part of its Direct-to-Consumer (DTC) division within the entertainment segment, saw notable improvements in fiscal 2024.
Revenues from DTC increased 15% year-over-year, reaching $22.78 billion, while operating income for the segment turned positive, rising to $143 million from a loss of $2.5 billion the previous year.
Key drivers of this turnaround included higher subscription revenues from increased retail pricing and ad revenue growth, partially offset by rising programming and production costs.
Disney anticipates high single-digit adjusted earnings-per-share growth in fiscal 2025 and expects a 6% to 8% increase in operating income in its experiences segment.