- Disney earnings beat forecasts for seventh quarter in a row
- Shares rise 1% in pre-market trading
- It cleaned up at the box office in 2024 with the top three films
- The cinema success has positive read-across to its Disney+ streaming platform
- US theme parks disrupted by hurricanes
“Disney’s success has always been driven by magical experiences – whether that’s watching its films and TV shows, visiting its theme parks or immersing yourself into fantasy worlds via its characters in books and comics,” says Dan Coatsworth, investment analyst at AJ Bell.
“Having lost some of this magic in recent years, Disney has finally regained its mojo and is back on top. It has ruled the cinema box office, improved the profitability of its streaming platforms and boosted income from its overseas theme parks.
“The only major weak spot in the latest results was its US theme park operations and cruises which were blown off course by hurricanes and costs associated with launching a new ship.
“The fact Disney had the top three movies of 2024 will be a major relief to management. Disney had been accused of losing its way, remaking old films which didn’t click with the audience. Admittedly, its biggest success stories in 2024 were sequels to existing IP, but they were done in such a way as to strike a chord with viewers.
“Inside Out 2, Deadpool & Wolverine and Moana 2 dominated the box office last year and it was Moana 2 that drove Disney’s blockbuster fourth quarter.
“Positive word of mouth spread fast for these titles and ensured auditoriums were full for weeks on end – reviving Disney’s reputation and also reminding the public about the joys of the cinema. The success doesn’t stop there. Mufasa: The Lion King was only released in December but it also proved a massive hit, scoring a place in the top 10 worldwide box office for the year.
“The success of these films has a knock-on impact for the Disney+ streaming platform. Their popularity should help to drive subscriber growth as they get added to the platform, with Inside Out 2 and Deadpool & Wolverine already available. They’re the bait to hook people in and get them to fish around for other things to watch.”
