This stock evokes emotions.

Last Updated: 1. März 2024By

What are business and quarterly reports against shiny children’s eyes? The latter must always be kept in mind when analyzing Disney’s stock. Because no matter how the company is doing operationally, in the end it touches the hearts of its customers. That is priceless. But does the stock also pay off? Walt Disney Co. is the world’s third largest media company.

In addition to operating amusement and theme parks in Florida, California, Paris, Hong Kong, and Tokyo, the company also produces feature films (Buena Vista, Touchstone, Hollywood Pictures) and records. It is also active in the areas of TV networks (ABC, ESPN), radio and publishing, as well as retailing Disney products.

Disney takes a step back Disney’s revenue in the 4th quarter increased by 5.4% to $21.24 billion. Profit climbed from 254 to 694 million dollars. The increase in profit – which even exceeded expectations – is due to the theme parks, which are attracting more visitors again. In addition, Disney has raised ticket prices here. The theme parks saw a jump in revenue of 13% to $8.16 billion. The declining advertising revenue from linear television had a negative impact. Disney CEO Bob Iger did not rule out selling the TV business. In the important video streaming business, cheaper subscription models with advertising are gaining momentum.

Worldwide, the number of Disney+ users with ad subscriptions increased by 2 to 5.2 million. Overall, the customer base in the core Disney+ brand grew by 7 to 112.6 million. However, the streaming division is still operating at a loss. In the past quarter, they were operationally at $387 million. In the same quarter of the previous year, the division had a loss of $1.47 billion. Iger reaffirmed the goal of stopping streaming losses by the end of the current fiscal year in early October 2024. To do this, he wants to produce fewer expensive Marvel and Star Wars series.

Dividend sweetens the wait for rising prices But the company’s CEO also wants to put a brake on costs in general. Instead of the originally planned savings of $5.5 billion per year, Iger wants to reduce expenses by $7.5 billion annually. Disney is paying a dividend again. $0.30 per share will be distributed for the second half of the year. We see the consolidation as positive. After years of investment, Disney is now hitting the brakes. This is part of the process. However, the long-term solid outlook remains. The dividend sweetens the wait for rising prices for shareholders. This may take some time, but it will come.

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