The Walt Disney Company has reported stellar results for its fiscal third quarter, surpassing Wall Street expectations and showcasing the company’s financial prowess. The entertainment giant announced quarterly revenue of $23.2 billion, marking a 4% increase from the previous year, and bringing their nine-month total to a massive $68.8 billion. For the first time since last year, Disney’s total quarterly income finished in the green at $3.093 billion. Over the nine-month period, total profit surged to $6.62 billion, which is a remarkable 76% increase compared to last year.
Earnings per share for this third quarter hit $1.39, representing a 35% year-over-year increase. Despite these gains, Disney reported a decrease in its free cash flow, now at $1.24 billion, down 24% from the previous year. However, the nine-month free cash flow totals $4.53 billion—an increase of over 100% from last year.
Among Disney’s many victories, “Inside Out 2” became the highest-grossing animated film of all time. Disney+, Hulu, and ESPN+ collectively turned a profit ahead of schedule, bringing in a combined $47 million. ESPN+ alone generated $66 million, offsetting $19 million in losses from other streaming services. Despite these gains, Disney+ saw an average monthly revenue per paid subscriber drop by 3% this quarter, spurring an upcoming price hike and new bundling options.
ESPN notably generated $4.28 billion in revenue—a 5% year-over-year increase—and reached several viewership milestones. Highlights included the highest P18-34 share for the NBA Finals in more than 20 years and a remarkable increase in WNBA viewership. ESPN also reported $1.09 billion in operating income, up 4% from the same time last year. The channel’s continuous success is attributed to growing advertising and subscription revenues, and increased programming and production costs.
Moreover, ESPN has secured an 11-year media rights deal to continue broadcasting NBA games, valued at $2.62 billion annually. The deal includes retaining the NBA Finals and ensuring significant regular-season broadcast windows. CEO Bob Iger emphasized the strategic value of this deal as Disney leverages ESPN in the digital age, particularly in anticipation of the direct-to-consumer streaming service set to launch in 2025.
Iger also mentioned that Disney remains open to finding a strategic partner for ESPN, involving telecom brands, technology firms, and sports leagues in ongoing discussions. “We continue to believe there may be opportunities to partner with others, particularly on the content side,” he said.
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Source: barrettmedia.com
