Film Production
Disney’s Q4 ends on a strong note with 23 per cent growth in operating income
Mumbai: We all grew up enchanted by the gleaming white castle, its spires stretching toward the heavens, a symbol of dreams brought to life. Since its debut in 1985, that castle, now softly lit by a setting sun with just the word ‘Disney’ below, has stood as a beacon of imagination and innovation. Today, much like the castle, The Walt Disney Company stands resilient, weathering decades of change and continuing to captivate hearts worldwide.
Closing fiscal 2024 on a high note, Disney showcased a masterclass in adaptation and growth amidst shifting tides in the entertainment industry. With Q4 revenue soaring 6 per cent to $22.6 billion and full-year revenue climbing 3 per cent to $91.4 billion, Disney reaffirmed its status as a powerhouse, delivering not just profits but enduring magic for fans and shareholders alike. Diluted earnings per share (EPS) rose dramatically, with Q4 showing a 79 per cent increase to $0.25, and full-year EPS more than doubling to $2.72, reflecting improved operational efficiency.
Despite a 6 per cent dip in pre-tax income to $0.9 billion for Q4, full-year figures paint a brighter picture with an impressive 59 per cent jump to $7.6 billion compared to FY23. The company delivered $8.6 billion in free cash flow, marking an impressive 75 per cent year-over-year increase, driven by lower production costs and higher operating income. Share buybacks of $3 billion and dividends tracking earnings growth highlight Disney’s commitment to shareholder value.
Disney’s Entertainment segment witnessed stellar growth, with operating income soaring past $1.1 billion, reflecting a staggering >100 per cent year-over-year improvement. This resurgence was bolstered by a 14 per cent increase in revenue to $10.8 billion, driven by box office hits such as Pixar’s “Inside Out 2″ and Marvel’s “Deadpool & Wolverine”, collectively amassing $316 million in operating income.
Direct-to-Consumer (DTC) profitability marked a significant milestone, transitioning from a $420 million loss in Q4 FY23 to a $253 million profit in Q4 FY24. Disney+ Core subscriptions grew by 4.4 million, reaching 120 million paid subscribers, while Hulu gained an additional 2 per cent to 52 million subscribers.
While the Sports segment saw a minor 5 per cent decline in operating income to $929 million, domestic ESPN advertising revenue increased by 7 per cent, showcasing continued strength in live sports. However, rising costs, particularly in college football rights, weighed on overall profitability.
The Parks and Experiences segment achieved record annual revenues of $34.2 billion, driven by higher guest spending and innovative offerings like the Disney Cruise Line. Nonetheless, Q4 revenue growth was modest at 1 per cent, with international parks reporting a 6 per cent decline in operating income, attributed to lower attendance and higher operating costs.
Disney invested $5.4 billion in capital expenditures, reflecting its focus on long-term growth via fleet expansions and next-generation attractions. CEO Robert A. Iger expressed optimism, emphasising Disney’s strategy to leverage its vast entertainment assets to deliver exceptional returns and sustained innovation.
Looking ahead, Disney projects high single-digit EPS growth in FY25, targeting $15 billion in operating cash flow and $3 billion in stock repurchases. Entertainment DTC operating income is forecasted to grow by $875 million, signalling robust momentum in the streaming space.
As Disney emerges from a challenging yet transformative phase, the FY24 results underscore its ability to adapt, innovate, and grow amidst industry headwinds. With a diverse portfolio spanning streaming, sports, and experiential entertainment, Disney’s fiscal trajectory remains a compelling narrative of resilience and ambition.
Film Production
Disney to cut 1,000 jobs under new chief executive
The entertainment giant’s freshly installed boss inherits a restructuring already in motion, with marketing and corporate roles bearing the brunt
CALIFORNIA: Walt Disney is preparing to slash up to 1,000 jobs in the coming weeks, the Wall Street Journal reported, as the entertainment giant’s freshly installed chief executive moves swiftly to trim fat and tighten the ship.
The cuts, less than 1 per cent of Disney’s global workforce of 231,000, will fall hardest on marketing and corporate roles. The planning, notably, began before D’Amaro formally took the top job in March, suggesting the new boss inherited a restructuring already in motion rather than one of his own making.
Driving the push is Asad Ayaz, Disney’s newly appointed chief marketing officer, who in January assumed command of a unified, company-wide marketing operation spanning film, television and streaming. His consolidation drive has been given a suitably cinematic internal name: Project Imagine.
The move is modest by Disney’s recent standards. Between 2023 and 2025, under former chief executive Bob Iger, the company eliminated roughly 8,000 positions across several brutal rounds of cuts, saving $7.5 billion, comfortably exceeding its own targets. As recently as June 2025, several hundred more jobs were axed across Disney Entertainment, hitting film and television marketing, publicity, casting, development and corporate finance.
Disney’s structural headaches are well-documented: shrinking streaming margins, a weakened box office, and fierce competition from Amazon and YouTube gnawing at its flanks. The company is merging its Disney+ and Hulu teams into a single app, has brought in consultants from Bain & Co to guide its broader cost strategy, and is betting heavily on digital growth.
The wider entertainment industry offers little comfort. Sony Pictures, Paramount and Warner Bros. Discovery have all taken the knife to their workforces in recent years, and further cuts loom if Paramount’s acquisition of Warner goes through.
For D’Amaro, the message is clear: there will be no honeymoon period. The magic kingdom still has some cost-cutting spells left to cast.
