Walt Disney Co. announced on Thursday plans to repurchase $3 billion in shares after reporting strong full-year results, including record revenue in its Experiences segment.
Disney stock up by 9% on strong FY results
The Burbank, California-based media and entertainment giant reported a net income of $4.97 billion for the year ending September 28, doubling from $2.35 billion the previous year. Diluted earnings per share increased to $2.72, up from $1.29.
Revenue grew 2.8% to $91.36 billion, up from $88.90 billion, while costs and expenses decreased by 0.6% to $79.45 billion, from $79.91 billion.
Entertainment revenue rose 1.4% to $41.19 billion, Experiences grew 4.9% to a record $34.15 billion, and Sports increased 3.0% to $17.62 billion.
Investment in parks, resorts, and other properties increased by 8.9% to $5.41 billion, driven by higher spending on cruise fleet expansion and new attractions, partly offset by reduced spending on corporate facilities.
Cash and equivalents dropped 58% to $6.00 billion from $14.18 billion, although borrowings were reduced by 7.4% to $38.97 billion from $42.10 billion.
Robert Iger's comment
"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," said CEO Robert Iger. "Our solid performance in Q4 reflected the success of our strategic efforts to improve quality, innovation, efficiency, and value creation," he added. "In Q4, we saw one of the best quarters in the history of our film studio, improved streaming profitability, a record-breaking 60 Emmy Awards, continued strength in live sports, and an exciting pipeline of new projects in our Experiences segment."
New $3B buyback plan
Looking forward, Disney expects high-single-digit adjusted EPS growth in fiscal 2025, with double-digit growth in the following two years. The company plans $3 billion in stock repurchases and dividend growth in line with earnings growth for fiscal 2025.
Disney shares rose 9.2% to $112.05 each in New York pre-market trading on Thursday.
