Walt Disney Co Q4 FY2024 earnings call

• Creative Renewal: Television series and films are performing well, with branded series and general entertainment programming growing new audiences and winning numerous accolades like 60 Emmy Awards. Films such as Inside Out 2 and Deadpool & Wolverine did well at the summer box office, and there are upcoming titles like Moana 2 and Mufasa: The Lion King.
• Experiences Growth: Parks and experiences are expanding, with Disney Cruise Line's fleet set to grow to six ships and seven additional ships in development. There's also a collaboration with Epic Games for a new games and entertainment universe.
• Streaming Advancements: Disney+ has 174 million subscribers, and an ESPN tile was launched on Disney+ on December 4th. Plans are in place for ESPN's flagship DTC offering in early fall 2025, and the company is leveraging its content and technology to strengthen the streaming offering.

The Walt Disney Company has several key segments. The Experiences segment continues to be a strong performer, with Disney Cruise Line's fleet growing and multiple park expansions in the works. The Streaming segment has seen significant growth, with 174 million Disney+ Core and Hulu subscriptions, and over 120 million Disney+ core subscribers. Advertising is a growing aspect, with the company leveraging its ad tech capabilities to enhance performance. Specific absolute revenue figures for each segment aren't provided, but the segments contribute to the company's overall financial performance.

• Fiscal 2025 is expected to have high single-digit adjusted EPS growth, with accelerating double-digit adjusted EPS growth in 2026 and 2027.
• Experiences operating income (OI) is expected to grow in 2025, with drivers including the Treasure ship launch and labor cost lapses in Disneyland Resort.
• Advertising is expected to be at or stronger than 2024's 3% level as the company enters 2025, leveraging its ad tech stack for better ad delivery.

• Economic or industry conditions, which could impact financial performance.
• Competition, which may affect market share.
• Execution risks related to business plans, potential strategic transactions, and content. For example, risks in international investment until technology is optimized.
• Legal and regulatory developments that could affect operations.

Q: About ESPN flagship launch and Experiences OI growth A: Bob Iger discussed ESPN flagship being personalized with AI-driven features and tech, while Hugh Johnston talked about Experiences OI growth drivers like the Treasure ship launch and labor cost lapses Q: On consolidated advertising growth and CapEx A: Robert Iger and Hugh Johnston talked about advertising integration of linear and streaming, and CapEx outlook with free cash flow modestly down Q: On Adam Smith's priorities and DTC margins A: Robert Iger mentioned Adam's work on tech, personalization, password sharing, Hugh Johnston discussed DTC margin confidence based on subscriber growth, pricing, and product updates