The Walt Disney Company concluded the third quarter of fiscal 2024 (ended June 29, 2024) with results exceeding expectations. The adjusted earnings per share were equal to $1,39, exceeding the previous year's figure of $1,03 and analysts' estimates of $1,19. THE revenues increased by 4%, reaching $23,2 billion while forecasts estimated it at $23,1 billion.
This growth was primarily driven by strong results in Entertainment segment, both at the box office and in direct-to-consumer activities (DTC), with Disney+ reaching profitability for the first time. Overall, theadjusted earnings per share for the company it increased by 35%.
“Our performance in the third quarter demonstrates the progress we have made across our four strategic priorities in our creative studios, streaming, sports and experiences. This was a strong quarter for Disney, driven by strong results in our Entertainment segment at both the box office and DTC, as we achieved profitability in our combined streaming businesses for the first time and a quarter earlier than our previous guidance,” said the CEO of Disney, Robert Iger.
“Despite weaker third quarter performance in our Experiences segment, adjusted earnings per share for the company increased 35%,” continued Iger, “and, with our portfolio of complementary and balanced businesses, we are confident in our ability to continue to drive earnings growth through our collection of unique and powerful assets.”
Disney+ profitable for the first time
Disney+ achieved profitability for the first time, contributing to a overall profit of 47 million dollars along with Disney's other streaming platforms, Hulu and ESPN+. This achievement came after several years, during which Disney+ maintained low prices and tolerated profile sharing to increase subscriptions.
The streaming platform has recorded a increase of 800 thousand subscribers in North America, while it lost 100 thousand subscribers internationally, excluding Disney+ Hotstar. The total number of Disney+ subscribers has surpassed 118 million. Hulu subscribers increased to 51,1 million. Disney did not provide specific data on ESPN+, which will be integrated into Disney+ by next year, but which has meanwhile recorded a loss of $19 million.
I average revenue per user Disney+ fell 1% to $7,22 from the previous quarter, while advertising revenue increased 20% from a year earlier.
Subscription prices are increasing in the US
Despite the positive results and profitability achieved, just yesterday Disney decided to raise the prices of its streaming services again in the United States, one year after the first increase. This move follows recent market trends, where other rival online video services, such as Netflix, Peacock and Max, have also announced price increases.
A starting October 17th, so the new prices will be as follows:
- Disney+ with ads: 25% increase to $9,99 per month.
- Disney+ ad-free: up 14% to $15,99 per month.
- Disney+ and Hulu bundle with ads: 10% increase to $10,99 per month.
Increases also expected for Hulu and ESPN+.
In addition to the price increases, Disney announced a expansion of programming choices for subscribers. Starting September 4, Disney+ subscribers will have access to ABC News Live and a playlist of preschool shows. Additionally, later this year, premium subscribers will have access to channels dedicated to documentaries, action films and pop culture.
