(AOF) – For the fourth quarter of its fiscal year, Disney reported revenue in line with expectations of $21.24 billion, up 5% compared to the same period a year earlier . Segment operating income grew by 86%, to $2.97 billion. Over the period, the entertainment giant’s adjusted EPS stood at 82 cents compared to 30 cents a year earlier, thus exceeding the consensus of 70 cents.
The Californian firm recorded the arrival of 7 million new subscribers to Disney+ during the fourth quarter attracted by the third opus of “Guardians of the Galaxy” and the original series “Star Wars: Ahsoka.”
Over the July-September period, Disney reduced the loss of its streaming division, which also includes Hulu and ESPN+, to $387 million, compared to $1.47 billion a year earlier, thanks to higher prices and growing advertising revenue. The group said this division is expected to become profitable by September 2024.
Disney reported an operating profit of $236 million for its content and licensing division, which includes television and film sales, compared to a loss of $608 million a year ago.
Disney now ensures that it is on track to achieve $7.5 billion in savings over the year, as part of a vast cost reduction plan, instead of the $5.5 billion presented in beginning of the year.
It also forecasts “significant growth in free cash flow in fiscal 2024 compared to fiscal 2023, approaching levels last seen before the pandemic.”
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