Disney has been an embattled company for the last few years, but that doesn’t seem to have affected its financial performance all that much. According to the latest earnings report for Q1 2024, the House of Mouse has shattered earnings expectations, a victory that can no doubt be attributed, at least in part, to the recent austerity measures it has employed.
Under the stewardship of CEO Bob Iger, Disney reported a net income of $2.15 billion for Q1 2024, up a staggering 58% from the previous year. This financial crescendo has certainly come at a pivotal moment, as Iger seeks to sway investors back to his side, proving that his return was the much-needed solution for the company’s mounting troubles.
Financial analysts had pegged Disney’s total revenue for the last quarter at $23.7 billion, a number the company narrowly failed to achieve, as it closed with a total revenue of $23.5 billion. Still, Disney came out on top in the forecasted 99 cents a share, instead waltzing in at $1.22 a share.
One of the greatest contributors to Disney’s financial results is the direct-to-consumer division. The sector, a trifecta of streaming powerhouses comprising Disney+, Hulu, and ESPN+, reported an operating loss of $216 million. While this might seem like a pretty penny at first glance, it’s a massive improvement from the $1 billion loss reported in the same quarter last year.
ESPN in particular will be a major point of interest for Disney in the coming months, as it plans to roll out the service as a stand-alone streaming option that promises to be the endgame for sports fans everywhere. Even the analysis section of the service is receiving a major boost with Coach Nick Saban joining the network as an on-air commentator.
Unfortunately the crown jewel of the trio, Disney+, has been hemorrhaging users without any signs of stopping. Despite the addition of new content like Percy Jackson and the Olympians and the second season of Loki, the platform saw a dip in its subscriber base, shedding 1.3 million subscribers to settle at 111.3 million globally.
Obviously, you don’t need to be Sherlock Holmes to make the connection between the platform’s recent price hike and the drop in subscription numbers, coupled with some of the most popular shows being dormant.
Fortunately for Disney (and Swifties), Disney+ is set to become the exclusive streaming stage for the concert film Taylor Swift: The Eras Tour on March 15. Disney will be hoping that this deal can act as a siren call to Taylor Swift’s enormous fan base and casual viewers alike, giving the company a chance to entice new subscribers to the platform.
The Eras Tour film on Disney+ will be an extended version of the theatrical film, including renditions of additional hits like “Cardigan” from the Folklore album. Based on the incredible success of the tour and film, we’re pretty sure this will help a fair bit.
On the film front, Disney’s slate of upcoming films scheduled to release this year includes The First Omen on April 5, Kingdom of the Planet of the Apes on May 10, Deadpool 3 on July 26, and a sequel to the animated film Moana, which will land in theaters in November.
The live-action adaptation of Moana, in which Dwayne Johnson will reprise his role, is still forging ahead, with plans to release it sometime next year. If you ask us, we wouldn’t lose any sleep over the whole live-action adaptation stuff petering out, but apparently it’s making buck.
Keeping an eye on the future, Disney is teaming up with Epic Games to venture into a new gaming and entertainment universe where Disney’s iconic characters could meet the Fortnite frenzy. Maybe those rumors of Jack Sparrow coming to Fortnite were true after all.
This fiscal report for the last quarter paints a picture of a company in control, but that couldn’t be further from the truth. Excluding the wave of layoffs and cost-cutting measures the House of Mouse has been “forced” to implement (while pumping million-dollar bonuses into executive pockets of course), Iger is a man under siege.
Not only is he facing a barrage of attacks from Disney critics, but the American executive is also contending with a challenge from activist investor Nelson Peltz, who is pushing to get seats on Disney’s board and take control of the company.
Adding to the company’s troubles, former Mandalorian star Gina Carano is also suing Disney and its subsidiary Lucasfilm for wrongful termination over her conservative opinions. The fact that billionaire and business magnate Elon Musk is covering her legal fees doesn’t bode well for Disney, as Musk is well known for openly feuding with the company.
It remains to be seen how Disney will navigate its problems and keep its shareholders happy while still providing entertainment value to a disgruntled target audience.
