Mickey smiled again. After several difficult years and strong criticism from certain investors, Disney is ending its fiscal year with impressive results. Better still, the group anticipates very high profits for the years to come. Wall Street reacted very favorably to these announcements with the stock rising 7% to more than $110. Let’s take stock.
A turnover to match
At the end of September, Disney’s fiscal year revenue rose 3% to $91.4 billion. Even more impressive: its net income soared 59% to $7.6 billion.
In detail, the streaming activity (Disney+ and Hulu), which was not profitable for a long time, generated 321 million in profit over the last three months, an increase of almost seven compared to the previous quarter.
But it is also cinema that delights the big-eared firm. Thanks to the success of Vice versa 2 And Deadpool & Wolverinethis division made a profit of $316 million while it lost $149 million a year earlier.
Disney still deplores difficulties with its television channels (ABC, Disney Channel, ESPN) and a slight slowdown in its amusement parks due to the impact of inflation in the United States and the Summer Olympic Games in Paris , but there is clearly nothing to dampen investor enthusiasm.
Optimism is in order
And for good reason, management had excellent prospects to present to them for the coming years. Streaming will continue to grow and its profit could generate up to $1 billion in 2025. Meanwhile, theme park expansions are also expected to improve revenues.
Full of optimism, CEO Bob Iger enthused: “It’s remarkable that never before has more value been created with Disney’s blockbuster films through more consumer touchpoints.”.
And to prove that it is far from resting on its laurels, Disney has even announced a figure that will make its competitors dizzy. The group will in fact invest 24 billion dollars in its content in 2025 compared to 23.4 billion this year. An increase which is however not attributable to series and films, but to the acquisition of rights to retransmit sports programs for its television channels.
To delve deeper into the challenges and power struggles within the Disney group, we invite you to reread our previous article on this subject here.
