This is a new sign of Disney’s recovery. The company announced yesterday that it would increase the dividend paid to shareholders by 33%, or one dollar per share. The big-eared firm is smiling again and is already looking towards the future. Let’s take stock.
New investments
Bob Iger, the company’s CEO, accompanied this good news with a positive comment: “With the company operating from a position of renewed strength, we are pleased to increase the dividend for shareholders while continuing to invest for the future”.
As reported Bloombergthe group expects profit growth over the next three years. And our colleagues also point out that Disney suspended its dividend in 2020 when it had to close its amusement parks and its live sports activities.
Insolent results
Clearly, the company is coming off a very positive year, as shown by the figures presented in the last quarter. Disney’s fiscal year revenue climbs 3% to $91.4 billion. As for its net income, it soared by 59% to $7.6 billion.
It is the streaming activity (Disney+ and Hulu) which is becoming profitable and has generated $321 million over the last three months. Satisfaction also from the cinema branch, which made a profit of 316 million dollars when it lost 149 million a year earlier. The entertainment giant can also say thank you to Vice versa 2 and to Deadpool & Wolverine which were a hit.
Who will replace Bob Iger?
Of course, life is not a long, quiet river within such a group, and the succession of Bob Iger, who is due to leave his post on December 31, 2026, is starting to occupy people’s minds. James P. Gorman, a renowned banker across the Atlantic, recently joined the company’s board of directors and will serve as chairman effective January 2, 2025.
The latter indicated his agenda:
A key priority for us is to appoint a new CEO, which we now plan to announce in early 2026. This timeline reflects the progress made by the Succession Planning Committee and the Board of Directors and will allow sufficient time for a transition successful.
To succeed the leader, several names of well-placed executives at Disney are mentioned, but the board of directors could also choose an outsider who currently runs another company. This war of succession will in any case be fascinating to follow, and some evil tongues even explain that it could be more interesting than certain scenarios recently proposed by the big-eared firm.
