Weaker theatrical results affect Disney’s fourth-quarter earnings

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Disappointing ticket sales for films like “The Fantastic Four: First Steps,” “The Roses,” and “Freakier Friday” negatively impacted Walt Disney Co.’s entertainment division during the last three months of its fiscal year, the company announced Thursday.

For the three months ending September 27th, the Burbank-based media and entertainment company earned $10.2 billion from its entertainment division, a 6% decrease from the same period last year. Operating income for this division totaled $691 million during the quarter, down 35% compared to last year.

Let’s talk box office. Numbers were down a bit in the last three months of the year, and it’s tough not to compare that to how well things were doing this time last year. We had the surprise hit “Deadpool & Wolverine” absolutely crushing it, and “Inside Out 2” was still bringing in huge crowds – both of those films eventually topped a billion dollars worldwide. So, yeah, this quarter felt a little softer in comparison.

Okay, so looking at Disney’s entertainment side of things for the whole year – that’s everything from the movies in theaters to Disney+ and Hulu – they brought in $42.5 billion, which is a pretty solid 3% jump from last year. And the best part? Their operating income really popped, increasing by 19% to $4.7 billion. As a movie fan, it’s great to see the entertainment side doing so well!

Disney’s traditional TV networks experienced a 16% drop in revenue during the last three months of the year, with less money coming in from advertising and fewer people watching. However, Disney’s streaming services performed well, bringing in $6.2 billion in revenue – an 8% increase from the year before. Profits from streaming also rose significantly, up 39% to $352 million.

Disney CEO Bob Iger stated that the company made significant strides this year by building on the strength of its creative content and brands, and by continuing to grow its direct-to-consumer businesses. He expressed satisfaction with the company’s accomplishments and how they set Disney up for future success.

Disney reported $22.5 billion in revenue for the last three months of the year, which was roughly the same as the same period last year. For the entire year, Disney’s revenue reached $94.4 billion, a 3% increase.

The company’s fourth-quarter earnings reached 73 cents per share, a significant increase from 25 cents in the same period last year. For the entire year, earnings per share totaled $6.85, compared to $2.72 the previous year. Fourth-quarter income before taxes rose to $2 billion, up from $948 million, and full-year income before taxes increased by 59% to $12 billion.

Disney’s theme parks, cruise line, and Hawaiian resort, Aulani, performed very well in the last quarter of the year. Revenue for this part of the business reached $8.8 billion, up 6% compared to the same quarter last year, and operating income increased by 13% to $1.9 billion.

I’m really excited to see Disney’s parks and experiences doing so well! This past quarter, their domestic parks brought in $920 million in operating income, which is a 9% increase – they said that was mainly thanks to a fantastic performance from their cruise line. And it wasn’t just here in the US; their international parks also saw a jump, especially at Disneyland Paris, where more people visited and spent more money. It’s great to see growth in both areas!

Disney’s theme parks and experiences division earned $36.2 billion in revenue for the year, a 6% increase. Operating income also rose, reaching almost $10 billion – an 8% jump.

Disney’s sports division, including ESPN, brought in almost $4 billion in revenue last quarter, a 2% increase. However, operating income dipped 2% to $911 million. Disney explained this decrease was due to increased marketing expenses for the launch of its new ESPN streaming service in August, as well as rising costs for programs and production.

The sports industry finished the year with $17.6 billion in revenue, about the same as last year, but saw a 20% increase in operating income, reaching $2.9 billion.

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2025-11-13 15:01