The Walt Disney Company (DIS) Bundle
A Brief History of The Walt Disney Company
The Walt Disney Company, a leader in the entertainment industry, has undergone significant transformations since its founding in 1923. As of 2024, Disney continues to adapt to the evolving market, leveraging its vast portfolio of assets, including theme parks, television networks, and streaming services.
Financial Performance Overview
For the nine months ending June 29, 2024, Disney reported total revenues of $68.8 billion, up from $67.7 billion in the same period of the previous year. The net income attributable to Disney increased to $4.5 billion compared to $2.1 billion in the prior year, reflecting a substantial growth driven by improved performances across its segments.
| Financial Metric | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Total Revenues | $68.8 billion | $67.7 billion |
| Net Income | $4.5 billion | $2.1 billion |
| EPS | $2.46 | $1.14 |
| Operating Cash Flow | $8.5 billion | $5.1 billion |
| Total Assets | $197.8 billion | $205.6 billion |
Segment Performance
Disney's business segments have shown diverse growth patterns. The Entertainment segment generated $30.4 billion in revenues, while the Sports segment contributed $13.7 billion. The Experiences segment, encompassing theme parks and resorts, saw revenues rise to $25.9 billion.
| Segment | 2024 Revenues | 2023 Revenues |
|---|---|---|
| Entertainment | $30.4 billion | $31.1 billion |
| Sports | $13.7 billion | $13.2 billion |
| Experiences | $25.9 billion | $24.4 billion |
Streaming Services Expansion
Disney+ and Hulu have been pivotal in Disney's strategy to capture the streaming market. As of June 29, 2024, Disney+ had approximately 118.3 million subscribers, with Hulu adding around 51.1 million subscribers. The average monthly revenue per paid subscriber for Disney+ was $7.74, reflecting a slight decrease from the previous quarter.
| Service | Subscribers (Millions) | Average Monthly Revenue |
|---|---|---|
| Disney+ | 118.3 | $7.74 |
| Hulu | 51.1 | $12.73 |
Market Challenges and Strategies
Disney has faced various challenges, including rising production costs and competition in the streaming sector. To combat these issues, the company has focused on strategic investments in content and technology, aiming to enhance user engagement and retention.
In the nine months ending June 29, 2024, Disney reported a decrease in programming costs by 3%, alongside a 67% increase in cash provided by operations, indicating effective cost management amid revenue growth.
| Metric | 2024 | 2023 |
|---|---|---|
| Programming Costs | Decreased by 3% | — |
| Cash Provided by Operations | $8.5 billion | $5.1 billion |
Future Outlook
Looking ahead, Disney plans to continue expanding its digital footprint while enhancing its traditional business segments. The company aims to leverage its strong brand and extensive content library to drive future growth and profitability.
A Who Owns The Walt Disney Company (DIS)
Major Shareholders
As of 2024, the ownership of The Walt Disney Company (DIS) is characterized by a mix of institutional and individual shareholders. The largest shareholders include:
- Vanguard Group: 8.2% ownership
- BlackRock: 7.6% ownership
- State Street Corporation: 4.5% ownership
- Wellington Management: 3.1% ownership
- Fidelity Investments: 3.0% ownership
Institutional Ownership
Institutional investors hold a significant portion of Disney's shares, reflecting confidence in the company's long-term prospects. The following table summarizes the institutional ownership as of mid-2024.
| Institution | Ownership Percentage | Number of Shares (millions) |
|---|---|---|
| Vanguard Group | 8.2% | 150.0 |
| BlackRock | 7.6% | 138.0 |
| State Street Corporation | 4.5% | 81.0 |
| Wellington Management | 3.1% | 56.0 |
| Fidelity Investments | 3.0% | 54.0 |
Insider Ownership
Insider ownership at Disney is relatively low, with key executives and board members holding a combined total of approximately 1.5% of the company's shares. The notable insiders include:
- Bob Iger (Executive Chairman): 0.1% ownership
- Christine McCarthy (CFO): 0.05% ownership
- Other Executives and Board Members: 1.35% ownership
Recent Stock Performance
As of June 29, 2024, The Walt Disney Company's stock price was $101.42. The stock has seen fluctuations throughout the year, with an average price of $105.82 during the second quarter of 2024.
Market Capitalization
The market capitalization of The Walt Disney Company stands at approximately $185 billion as of mid-2024, reflecting its status as one of the largest media conglomerates globally.
Shareholder Equity
The total equity attributable to Disney shareholders as of June 29, 2024, is reported at $100.622 billion, with total liabilities and equity of $197.772 billion.
Key Financial Metrics
For the nine months ending June 29, 2024, The Walt Disney Company reported the following key financial metrics:
| Metric | Value (in billions) |
|---|---|
| Total Revenues | $68.787 |
| Net Income | $5.209 |
| Earnings Per Share (EPS) | $2.46 |
| Operating Income | $11.946 |
Dividends and Share Repurchases
In 2024, Disney announced a dividend of $0.05 per share, reinstating its dividend policy after suspensions during the COVID-19 pandemic. Additionally, the company has authorized a share repurchase program for up to 400 million shares, with 14.17 million shares repurchased in the second quarter of 2024.
The Walt Disney Company (DIS) Mission Statement
Mission Statement Overview
The Walt Disney Company is guided by a mission to entertain, inform, and inspire people around the globe through the power of unparalleled storytelling, reflecting the iconic brands, creative minds, and innovative technologies that make it the world’s premier entertainment company.
Financial Performance Metrics
As of June 29, 2024, The Walt Disney Company reported significant financial metrics, reflecting its operational strengths and market position:
| Financial Metric | Value (in millions) |
|---|---|
| Total Revenues | $68,787 |
| Net Income Attributable to Disney | $4,512 |
| Earnings Per Share (EPS) | $2.46 |
| Cash Provided by Operations | $8,453 |
| Total Assets | $204,500 |
| Total Liabilities | $98,000 |
| Total Equity | $105,303 |
Segment Performance
The Walt Disney Company operates through various segments, each contributing to its overall mission of storytelling and entertainment:
| Segment | Quarterly Revenue (Q3 2024, in millions) | Year-to-Date Revenue (Nine Months Ended June 29, 2024, in millions) |
|---|---|---|
| Entertainment | $10,580 | $30,357 |
| Sports | $4,558 | $13,705 |
| Experiences | $8,386 | $25,911 |
Key Operational Metrics
The operational metrics underscore the company's commitment to enhancing guest experiences and engagement:
| Metric | Value |
|---|---|
| Parks Attendance Growth | 1% |
| Hotel Occupancy Rate | 83% |
| Per Capita Guest Spending Growth | 4% |
Recent Developments
In the latest quarter, Disney has continued to innovate and expand its reach in the entertainment sector, particularly through its streaming services:
| Streaming Service | Subscribers (in millions) |
|---|---|
| Disney+ | 118.3 |
| Hulu | 51.1 |
Conclusion of Financial Position
The Walt Disney Company remains a leader in the global entertainment industry, driven by its mission to deliver high-quality content and experiences across multiple platforms. Its financial and operational metrics reflect a robust growth trajectory as of 2024.
How The Walt Disney Company (DIS) Works
Overview of Business Segments
The Walt Disney Company operates through various segments: Entertainment, Sports, and Experiences. Each segment contributes differently to the overall revenue and operational performance.
| Segment | Quarter Revenue (June 29, 2024) (in millions) | Quarter Revenue (July 1, 2023) (in millions) | Change (%) |
|---|---|---|---|
| Entertainment | 10,580 | 10,127 | 4 |
| Sports | 4,558 | 4,335 | 5 |
| Experiences | 8,386 | 8,198 | 2 |
Financial Performance
For the nine-month period ending June 29, 2024, Disney reported total revenues of $68.8 billion, a $1.1 billion increase compared to the prior year. Net income attributable to Disney increased by $2.4 billion to $4.5 billion, resulting in an earnings per share (EPS) of $2.46, up from $1.14 in the previous year.
| Metric | June 29, 2024 | July 1, 2023 |
|---|---|---|
| Total Revenue (in billions) | 68.8 | 67.7 |
| Net Income (in billions) | 4.5 | 2.1 |
| EPS | 2.46 | 1.14 |
Revenue Breakdown by Geographic Region
Disney's revenue is also segmented by geographic region, with the Americas contributing the most to the overall revenue.
| Region | Quarter Revenue (June 29, 2024) (in millions) | Quarter Revenue (July 1, 2023) (in millions) |
|---|---|---|
| Americas | 18,293 | 17,765 |
| Europe | 2,572 | 2,336 |
| Asia Pacific | 2,290 | 2,229 |
Direct-to-Consumer Segment
The Direct-to-Consumer segment has shown growth, particularly in subscription revenues from platforms like Disney+ and Hulu, which are key drivers of the company's digital strategy.
| Metric | June 29, 2024 | July 1, 2023 |
|---|---|---|
| Subscription Revenue (in millions) | 14,041 | 12,243 |
| Advertising Revenue (in millions) | 2,740 | 2,411 |
| Total DTC Revenue (in millions) | 16,993 | 14,850 |
Cost Structure
Disney's operational costs have decreased in certain areas while increasing in others, reflecting ongoing adjustments in their business model.
| Cost Category | June 29, 2024 (in millions) | July 1, 2023 (in millions) | Change (%) |
|---|---|---|---|
| Cost of Services | 39,800 | 40,900 | -3 |
| Selling, General & Administrative | 3,424 | 3,033 | 13 |
| Depreciation & Amortization | 3,705 | 3,960 | -6 |
Theme Parks and Experiences
The Experiences segment, which includes Disney's theme parks and resorts, has seen increased attendance and guest spending, contributing to overall revenue growth.
| Metric | June 29, 2024 | July 1, 2023 |
|---|---|---|
| Theme Park Admissions Revenue (in millions) | 2,780 | 2,731 |
| Resort & Vacations Revenue (in millions) | 2,115 | 1,990 |
| Retail & Wholesale Sales (in millions) | 2,246 | 2,226 |
Debt and Interest Expenses
Disney's interest expenses have shown slight fluctuations, impacting net income. The company continues to manage its debt levels actively.
| Debt Metric | June 29, 2024 (in millions) | July 1, 2023 (in millions) |
|---|---|---|
| Interest Expense | (899) | (927) |
| Interest Income | 639 | 545 |
| Net Interest Expense | (342) | (305) |
Cash Flow Analysis
Cash flow from operations has increased significantly, indicating improved financial health.
| Cash Flow Category | June 29, 2024 (in millions) | July 1, 2023 (in millions) |
|---|---|---|
| Cash Provided by Operations | 8,453 | 5,064 |
| Cash Used in Investing Activities | (4,903) | (3,259) |
| Cash Used in Financing Activities | (11,722) | (2,127) |
Market Position and Strategy
Disney continues to adapt its strategy to focus on content creation and digital distribution, while maintaining strong performance in its traditional entertainment and theme park segments.
How The Walt Disney Company (DIS) Makes Money
Revenue Segments
The Walt Disney Company generates revenue through several key segments: Entertainment, Sports, and Experiences. Each segment contributes differently to the overall financial health of the company.
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Entertainment | $10,580 million | $10,127 million | 4% |
| Sports | $4,558 million | $4,335 million | 5% |
| Experiences | $8,386 million | $8,198 million | 2% |
| Total Revenue | $23,155 million | $22,330 million | 4% |
Direct-to-Consumer (DTC) Services
The DTC segment, which includes Disney+, Hulu, and ESPN+, significantly contributes to Disney's revenue through subscription fees and advertising. For the nine months ended June 29, 2024, the DTC segment reported:
| Source | Revenue (Nine Months 2024) | Revenue (Nine Months 2023) | Change (%) |
|---|---|---|---|
| Subscription Fees | $14,041 million | $12,243 million | 15% |
| Advertising | $2,740 million | $2,411 million | 14% |
| Total DTC Revenue | $16,993 million | $14,850 million | 14% |
Advertising Revenue
Advertising revenue has grown due to higher impressions on platforms like Disney+ and Hulu. The advertising revenue for the quarter ended June 29, 2024, was:
| Source | Revenue (Q3 2024) | Revenue (Q3 2023) | Change (%) |
|---|---|---|---|
| Advertising | $3,280 million | $3,043 million | 8% |
Theme Parks and Experiences
The Experiences segment includes theme parks, resorts, and merchandise sales. For the nine months ended June 29, 2024, the revenue breakdown was as follows:
| Source | Revenue (Nine Months 2024) | Revenue (Nine Months 2023) | Change (%) |
|---|---|---|---|
| Theme Park Admissions | $8,568 million | $7,800 million | 10% |
| Resorts and Vacations | $6,334 million | $5,919 million | 7% |
| Merchandise, Food, and Beverage | $6,989 million | $6,750 million | 4% |
Content Sales and Licensing
Content sales and licensing also form a significant part of Disney's revenue. The revenue from this segment for the nine months ended June 29, 2024, was:
| Source | Revenue (Nine Months 2024) | Revenue (Nine Months 2023) | Change (%) |
|---|---|---|---|
| TV/VOD Distribution | $1,656 million | $2,063 million | (20%) |
| Theatrical Distribution | $1,098 million | $2,745 million | (60%) |
| Home Entertainment | $540 million | $639 million | (15%) |
Financial Overview
For the quarter ended June 29, 2024, Disney reported a net income attributable to Disney of:
- Q3 2024: $2,621 million
- Q3 2023: $(460) million
The increase in net income was attributed to improved performance across various segments, particularly in DTC and Experiences.
Key Metrics
Disney's key operating metrics for its parks and resorts for the quarter ended June 29, 2024, included:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Domestic Park Attendance Growth | 1% | 6% |
| International Park Attendance Growth | 4% | 88% |
| Average Guest Spending (Domestic) | $7.96 | $6.80 |
Disney's diverse revenue streams and strategic focus on digital content and experiences continue to drive growth and profitability across its business segments.
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