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‘Deadpool & Wolverine’ and ‘Inside Out 2’ propel Disney studio earnings

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'Deadpool & Wolverine' and 'Inside Out 2' propel Disney studio earnings

As a longtime Disney enthusiast and shareholder, I’ve seen my fair share of ups and downs, but this latest quarterly report from Walt Disney Co. has me grinning ear to ear! With the success of “Deadpool & Wolverine” and “Inside Out 2“, it’s clear that Disney is back on top in the superhero and animation game. The impressive revenue growth and operating income for their entertainment segment, coupled with the continued profitability of their streaming business, gives me confidence that the future looks bright for this Burbank media giant.

In simpler terms, superhero and animated movies significantly boosted Walt Disney Company’s performance. The releases of “Deadpool & Wolverine” and “Inside Out 2” helped their film division achieve one of its strongest financial quarters.

On Thursday, the media behemoth based in Burbank announced that its entertainment division garnered approximately $10.8 billion in sales during the last fiscal quarter, marking a 14% rise compared to the corresponding period of the previous year. Notably, the operating profit for this segment during the quarter reached an impressive $1.1 billion – four times as much as the same quarter last year, which was affected by the underperforming “Haunted Mansion.

From September 29 of last year through to this same date, Disney’s entertainment sector, encompassing films, television, Disney+, and Hulu, generated a total revenue of $41.2 billion. This figure represents a 1% increase when compared to the earnings from the previous year.

The company’s streaming services (Disney+, Hulu, and ESPN+) contributed to another profitable quarter for the business in the entertainment sector.

2021 proved to be a transformative and prosperous year for The Walt Disney Company, as we’ve managed to overcome substantial hurdles and upheaval, setting us up admirably for expansion and filled with optimism regarding our future, stated Chief Executive Bob Iger in his announcement.

In the final quarter, Disney generated a total revenue of $22.6 billion, marking a 6% growth over the previous year. This brought their annual revenue to $91.4 billion, representing a 3% rise compared to the previous year.

In the last quarter, we made an adjusted profit of $0.25, which is a 75% increase compared to the same period the previous year. For the entire year, our earnings per share amounted to $2.72, marking a significant rise from $1.29 in the previous year. Despite a 6% decrease in our fourth-quarter pre-tax income to $900 million, we managed to achieve a total pre-tax income of $7.6 billion for the year, representing a substantial jump from $4.8 billion in the same period last year.

During the final quarter, Disney experienced expansion in its streaming sector. The company concluded the period with a combined total of 174 million Disney+ and Hulu subscribers, and over 120 million paid Disney+ subscribers. This figure represents an increase of approximately 4.4 million compared to the preceding quarter as stated by the company.

As a devoted movie enthusiast, I’m thrilled to share that Disney’s trio of streaming platforms raked in an impressive $6.3 billion during the quarter, marking a 13% increase from the same period last year. What’s more, these services generated an operating income of $321 million for the quarter alone!

In the last quarter, Disney’s self-titled experiences sector – encompassing theme parks and merchandise – exhibited more subdued growth. This was primarily due to inflation, increased expenses related to cruise line development, and lower earnings at overseas parks. The revenue climbed slightly by 1%, reaching $8.2 billion, whereas operating income dropped by 6% to $1.6 billion.

2020 saw the Experiences division end the year with a revenue of $34.1 billion, marking a 5% increase compared to the previous year. This division, which has historically been the economic driving force for the company, has garnered keen interest from analysts. As they closely monitor Disney’s theme park finances, their attention is particularly piqued due to Universal’s upcoming debut of the Epic Universe theme park in Orlando, set for next year.

In simpler terms, during the latest quarter, Disney’s sports sector, which encompasses ESPN, generated approximately $3.9 billion in revenue – a mere 0.87% growth compared to the same period last year. The operating income for this division was $929 million for the quarter, representing a decrease of 5% compared to the earnings from the previous year.

The reduction in profits stemmed primarily from two factors: a rise in expenses related to college football broadcasting rights, leading to increased production and programming costs for our company; and a decline in affiliate income, which resulted from a smaller number of subscribers.

This year, Disney’s sports division recorded a revenue of $17.6 billion, marking a 3% increase from the previous year.

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2024-11-14 15:01

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