Superheroes and animation packed a punch for Walt Disney Co. as “Deadpool & Wolverine” and “Inside Out 2” propelled the company’s film studio to one of its best fiscal quarters.
The Burbank media giant reported Thursday that its entertainment business took in $10.8 billion in revenue during its fiscal fourth quarter, an increase of 14% compared with the same period a year earlier. The entertainment segment’s operating income for the quarter totaled $1.1 billion, quadruple the same quarter a year earlier, which included the lackluster “Haunted Mansion.”
For the full year that ended Sept. 28, Disney’s entertainment segment — which includes movies, TV, Disney+ and Hulu — reported revenue of $41.2 billion, up 1% compared with the previous year.
The entertainment business’ results were augmented by another quarter of profitability for the company’s streaming business, which includes Disney+, Hulu and ESPN+.
“This was a pivotal and successful year for The Walt Disney Co., and thanks to the significant progress we’ve made, we have emerged from a period of considerable challenges and disruption well positioned for growth and optimistic about our future,” Chief Executive Bob Iger said in a statement.
For the fourth quarter, the company brought in overall revenue of $22.6 billion, an increase of 6% compared with the prior year. That put Disney’s year-end revenue at $91.4 billion, up 3% from last year.
Earnings, excluding certain items, for the fourth quarter were $0.25, up from $0.14 a year earlier. For the year, earnings per share were $2.72, up from $1.29. The company’s income before taxes in the fourth quarter decreased 6% to $900 million, though for the year it hit $7.6 billion, up from $4.8 billion a year earlier.
Disney also saw growth in its streaming business, ending the fourth quarter with a total of 174 million Disney+ and Hulu subscribers, and more than 120 million Disney+ paid subscribers, which the company said was an increase of 4.4 million compared with the previous quarter.
Combined revenue for Disney’s three streaming services was $6.3 billion for the quarter, up 13% year over year. The company’s streaming business reported $321 million in operating income for the quarter. For the year, streaming revenue totaled $24.9 billion, up 14% compared with a year earlier.
Disney’s so-called experiences business, which includes the theme parks and merchandise, saw more muted growth in the fourth quarter due to inflation, cruise line expansion costs and softer results at international parks. Revenue rose 1% to $8.2 billion, while operating income fell 6% to $1.6 billion.
The experiences division closed out the year with $34.1 billion in revenue, up 5% from last year. Long the economic engine that has powered the company, Disney’s theme park finances have been closely watched by analysts, particularly as rival Universal plans to debut its Epic Universe theme park in Orlando next year.
Disney’s sports business, which includes ESPN, reported quarterly revenue of $3.9 billion, an increase of less than 1% compared with the previous year. The sports business’ operating income totaled $929 million for the quarter, down 5% from a year earlier.
The decrease was due to an increase in college football rights costs, which upped the company’s production and programming spending, as well as lower affiliate revenue from fewer subscribers, the company said.
For the year, Disney’s sports business reported revenue of $17.6 billion, up 3% compared with the prior year.