Lukewarm performances at the box office from the likes of “The Fantastic Four: First Steps,” “The Roses” and “Freakier Friday” dented Walt Disney Co.’s entertainment business for its fiscal fourth quarter, the company reported Thursday.
The Burbank media and entertainment company reported $10.2 billion in revenue for its entertainment segment for the three-month period that ended Sept. 27, down 6% compared with the same quarter a year earlier. Entertainment operating income for the fourth quarter totaled $691 million, down 35% compared with last year.
The softer box office showing during the fourth quarter was being compared with the strong performance of the irreverent superhero flick “Deadpool & Wolverine” in the year-earlier period, as well as the tail end of the theatrical window for the animated juggernaut “Inside Out 2,” each of which would go on to gross more than $1 billion globally.
For the full year, however, Disney’s entertainment segment — which includes movies, TV, Disney+ and Hulu — posted revenue of $42.5 billion, up 3% compared with fiscal year 2024. Operating income totaled $4.7 billion, an increase of 19%.
Though the company saw a 16% decline in revenue for its linear networks in the fourth quarter due to lower ad dollars and viewership, Disney did see an increase for its streaming services. The company reported fourth-quarter streaming revenue of $6.2 billion, an 8% jump compared with the previous year, and operating income of $352 million, up 39%.
“This was another year of great progress as we strengthened the company by leveraging the value of our creative and brand assets and continued to make meaningful progress in our direct-to-consumer businesses,” Disney Chief Executive Bob Iger said in a statement. “I’m pleased with our many achievements this fiscal year to position Disney for the future.”
Disney’s fourth-quarter revenue totaled $22.5 billion, about flat compared with the previous year. That put the company’s year-end revenue at $94.4 billion, up 3%.
Earnings, excluding certain items, for the fourth quarter totaled 73 cents per share, up from 25 cents a year earlier. For the full year, earnings per share was $6.85, up from $2.72. The company’s income before taxes in the fourth quarter was $2 billion, up from $948 million last year; for the full year, it was up 59% to $12 billion.
Disney’s experiences segment, which includes its theme parks, cruise line and Aulani resort and spa in Hawaii, was a bright spot for the fourth quarter. The company reported revenue of $8.8 billion, an increase of 6% from the previous year’s fourth quarter, with operating income rising 13% to $1.9 billion.
Operating income for domestic parks and experiences for the quarter was up 9% to $920 million, which Disney attributed to growth at its cruise line. Disney also got a boost from its international parks and experiences segment, largely due to an increase in attendance and spending at its Disneyland Paris resort.
For the full fiscal year, Disney’s experiences business reported revenue of $36.2 billion, a 6% bump, with operating income increasing 8% to nearly $10 billion.
Disney’s sports business, which includes ESPN, reported quarterly revenue of nearly $4 billion, up 2%, with operating income decreasing 2% to $911 million. The company said the decline in operating income was due to higher marketing costs associated with the August launch of the new ESPN direct-to-consumer service and increases in programming and production costs.
The sports business closed out the year with revenue of $17.6 billion, roughly flat compared with the previous fiscal year, and a 20% jump in operating income to $2.9 billion.
