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On Aug 8, the Walt Disney Company (DIS - Free Report) reported third-quarter fiscal 2024 adjusted earnings of $1.39 per share, which beat the Zacks Consensus Estimate by 15.8% and increased 35% year over year. Revenues rose 3.7% year over year to $23.15 billion and beat the consensus mark by 1.3%.
Disney's Segment Breakdown
Media and Entertainment Distribution revenues, which constitute about 45.7% of revenues, increased 4.5% year over year to $10.58 billion. Segmental operating income increase by 194.36% year over year, reaching $1.2 billion from $408 million,due to improved results at Direct-to-Consumer and Content Sales/Licensing and Other.
Parks, Experiences and Products revenues, constituting 36.2% of total revenues, rose 2.3% year over year to $8.38 billion. International revenues increased 4.6% year over year to $1.6 billion in the reported quarter. However, the segment’s operating income was $2.22 billion, down 3.3% year over year, due to a decline in Domestic operating incomes fueled by higher costs driven by inflation,higher technology spending and new guest offerings.
Revenues of the DTC Streaming Businesses of DIS increased 15% year over year, reaching $6.38 billion from $5.52 billion. Segmental operating income were $47 million against an operating loss of $512 million reported in the year-ago quarter.
Content Sales/Licensing and Other operating income were $254 million against an operating loss of $112 million reported in the year-ago quarter, driven by higher theatrical distribution results reflecting the strong performance of Inside Out 2 and Kingdom of the Planet of the Apes. Revenues of the segment decreased 4.4% year over year to $2.11 billion.
Subscriber Information
Disney+, as of Jun 29, 2024, had 118.3 million paid subscribers compared with 117.6 million as of Mar 31, 2024. Domestic Disney+ average monthly revenue per paid subscriber decreased from $8.00 to $7.74, whereas, International Disney+ (excluding Disney+ Hotstar) average monthly revenue per paid subscriber increased from $6.66 to $6.78.
Disney+ Hotstar’s average monthly revenue per paid subscriber increased 50% from $0.70 to $1.05 due to higher advertising revenues.
Hulu SVOD Only average monthly revenue per paid subscriber increased 8% from $11.84 to $12.73 due to higher advertising revenues.
Guidance
The company remains on track for the profitability of the combined streaming businesses to improve in the fourth quarter of fiscal 2024, along with expected modest growth in Disney+ Core subscribers.
DIS expects fiscal 2024 EPS, excluding certain items, to increase at least 30% from fiscal 2024.
ETFs in Focus
Shares of the media giant fell nearly 4.5% since reporting second-quarter results (as of Aug 7). The earnings outcome could significantly influence ETFs with investments in this major media player. Below, we have put the spotlight on ETFs that have exposure to Disney.
First Trust S-Network Streaming and Gaming ETF (BNGE - Free Report)
First Trust S-Network Streaming and Gaming ETF has an exposure of 4.47% in DIS. The fund has gained 1.20% over the past month and 7.29% over the past three month.
ALPS Global Travel Beneficiaries ETF has an exposure of 4.30% in DIS. The fund has lost 2.78% over the past month and 4.02% over the past three months.
Vanguard Communication Services ETF has an exposure of 4.18% in DIS. The fund has lost 1.08% over the past month but has gained 8.67% over the past three months.
AdvisorShares Gerber Kawasaki ETF has an exposure of 4.01% in DIS. The fund has lost 2.51% over the past month but has gained 7.42% over the past three months.
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Disney ETFs in Focus Post Q3 Earnings
On Aug 8, the Walt Disney Company (DIS - Free Report) reported third-quarter fiscal 2024 adjusted earnings of $1.39 per share, which beat the Zacks Consensus Estimate by 15.8% and increased 35% year over year. Revenues rose 3.7% year over year to $23.15 billion and beat the consensus mark by 1.3%.
Disney's Segment Breakdown
Media and Entertainment Distribution revenues, which constitute about 45.7% of revenues, increased 4.5% year over year to $10.58 billion. Segmental operating income increase by 194.36% year over year, reaching $1.2 billion from $408 million,due to improved results at Direct-to-Consumer and Content Sales/Licensing and Other.
Parks, Experiences and Products revenues, constituting 36.2% of total revenues, rose 2.3% year over year to $8.38 billion. International revenues increased 4.6% year over year to $1.6 billion in the reported quarter. However, the segment’s operating income was $2.22 billion, down 3.3% year over year, due to a decline in Domestic operating incomes fueled by higher costs driven by inflation,higher technology spending and new guest offerings.
Revenues of the DTC Streaming Businesses of DIS increased 15% year over year, reaching $6.38 billion from $5.52 billion. Segmental operating income were $47 million against an operating loss of $512 million reported in the year-ago quarter.
Content Sales/Licensing and Other operating income were $254 million against an operating loss of $112 million reported in the year-ago quarter, driven by higher theatrical distribution results reflecting the strong performance of Inside Out 2 and Kingdom of the Planet of the Apes. Revenues of the segment decreased 4.4% year over year to $2.11 billion.
Subscriber Information
Disney+, as of Jun 29, 2024, had 118.3 million paid subscribers compared with 117.6 million as of Mar 31, 2024. Domestic Disney+ average monthly revenue per paid subscriber decreased from $8.00 to $7.74, whereas, International Disney+ (excluding Disney+ Hotstar) average monthly revenue per paid subscriber increased from $6.66 to $6.78.
Disney+ Hotstar’s average monthly revenue per paid subscriber increased 50% from $0.70 to $1.05 due to higher advertising revenues.
Hulu SVOD Only average monthly revenue per paid subscriber increased 8% from $11.84 to $12.73 due to higher advertising revenues.
Guidance
The company remains on track for the profitability of the combined streaming businesses to improve in the fourth quarter of fiscal 2024, along with expected modest growth in Disney+ Core subscribers.
DIS expects fiscal 2024 EPS, excluding certain items, to increase at least 30% from fiscal 2024.
ETFs in Focus
Shares of the media giant fell nearly 4.5% since reporting second-quarter results (as of Aug 7). The earnings outcome could significantly influence ETFs with investments in this major media player. Below, we have put the spotlight on ETFs that have exposure to Disney.
First Trust S-Network Streaming and Gaming ETF (BNGE - Free Report)
First Trust S-Network Streaming and Gaming ETF has an exposure of 4.47% in DIS. The fund has gained 1.20% over the past month and 7.29% over the past three month.
ALPS Global Travel Beneficiaries ETF (JRNY - Free Report)
ALPS Global Travel Beneficiaries ETF has an exposure of 4.30% in DIS. The fund has lost 2.78% over the past month and 4.02% over the past three months.
Vanguard Communication Services ETF (VOX - Free Report)
Vanguard Communication Services ETF has an exposure of 4.18% in DIS. The fund has lost 1.08% over the past month but has gained 8.67% over the past three months.
iShares Global Comm Services ETF (IXP - Free Report)
iShares Global Comm Services ETF has an exposure of 4.16% in DIS. The fund has 1.57% over the past month and 7.40% over the past three months.
AdvisorShares Gerber Kawasaki ETF (GK)
AdvisorShares Gerber Kawasaki ETF has an exposure of 4.01% in DIS. The fund has lost 2.51% over the past month but has gained 7.42% over the past three months.