Disney Expects to Lose $130 Million Due to Hurricanes Milton and Helene
The Walt Disney Company ended 2024 with a bang, buoyed by strong results from its entertainment division.
Overall, the company generated revenue of $22.57 billion in its fiscal fourth quarter, up six percent from last year. Income, however, was down six percent to $948 million, while diluted earnings per share were at $.25, compared to $.14 last year.
One of the biggest revelations from today’s earnings report was the revelation that Disney expects to lose $130 million due to hurricanes Milton and Helene.
The Good News
Before we get into the hurricane news, let’s quickly review the earnings results.
Strengthened by the historic success of Inside Out 2 and Deadpool & Wolverine, Disney Entertainment’s revenues rose to $10.8 billion, up 14%.
Photo: Marvel
Operating income shot up an astounding 100% to $1.07 billion versus last year.
Disney Delivers Streaming Profitability Again
In streaming, Disney continued to be profitable, delivering $321 million in operating income. Disney+ also added four million core subscribers.
Photo: Disney
The large gains in Disney’s Entertainment division were offset by lesser results from ESPN and Disney Experiences.
ESPN’s revenue managed to hold at $3.9 billion, though operating income fell to $929 million, a 5% drop from last year.
Disney Experiences Falls (A Little) Short
Disney Experiences, meanwhile, saw revenues rise by 1% as the domestic parks had a strong quarter. Operating income, however, fell by 6% to 1.7 billion. According to Disney, this was largely due to international parks.
Cinderella Castle
Hurricane Damage and Bright Future
Finally, Disney also revealed that the park’s division expects to lose $130 million due to the impact of Hurricane Milton and Hurricane Helene.
Photo: National Weather Service
According to the latest earnings report, the effect of the hurricanes will be felt early in 2025. Despite this, Disney Experiences projects 6 to 8 percent income growth. This, however, will be delivered more heavily towards the end of the year.
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