Disney ended fiscal 2024 with 122.7 million paid Disney+ Core subscribers, up from 4.4 million subscribers over the September quarter – better than expected.

Reporting fourth-quarter 2024 results that beat Wall Street expectations, Disney’s overall streaming business stood out as profitability increased with operating income of $321 million, compared to a loss of $387 million in the same period a years ago. That came after Mouse House’s direct-to-consumer business posted its first operating profit (of $47 million) in the previous quarter.

Disney saw box office results rise during the quarter ended September 30, as summer blockbusters Pixar’s ‘Inside Out 2’ and Marvel’s ‘Deadpool & Wolverine’ generated $316 million in operating revenue for the content sales and licensing segment.

Total revenue for Disney’s entertainment division, which includes its linear networks such as ABC, streaming operations and content sales and licensing, rose 14% year over year to $10.8 billion (vs. $9.5 billion). Revenue in the sports division (consisting primarily of ESPN and ESPN+) remained stable at $3.9 billion. Revenue from experiences, including theme parks, video games and consumer products, rose 1% to $8.2 billion.

Linear network revenues fell 6% ($2.5 billion), down 5% in the US due to lower affiliate revenue and ad sales, and fell 12% internationally. Streaming revenue rose 15% ($5.8 billion) and streaming ad sales rose 14% in the September period. Content and license sales rose 39% ($2.6 billion) thanks to Disney’s impressive box office results.

Disney+ subscribers in the US and Canada rose 2% from the previous quarter to 56.0 million and international customers, excluding Disney+ Hotstar, rose 5% to 66.7 million. The number of Disney+ Hotstar subscribers increased by 1% to 35.9 million. Hulu subscribers reached 52 million (4.6 million Live TV+ streaming customers and 47.4 million streaming only).

Disney reported $22.6 billion in consolidated revenues for the fourth quarter, a 6% increase over sales, and net income of $460 million (versus $264 million in the same period a year earlier). That translated into adjusted earnings per share of $1.14. Wall Street had forecast earnings per share of $1.10 on revenue of $22.48 billion, according to analyst consensus data provided by LSEG. Disney’s free cash flow was $4 billion this quarter.

In Thursday’s earnings results, Disney provided financial guidance for earnings per share for not only fiscal 2025, but also 2026 and 2027, noting that the company is “confident in the long-term prospects for the business and believes we are well positioned for growth.” However, Disney said it expects a “modest decline” in Disney+ Core subs next quarter, which is when it will see the impact of the October 2024 price increase.

“This has been a pivotal and successful year for The Walt Disney Company, and the significant progress we have made has left us emerging from a period of significant challenge and disruption, well positioned for growth and optimistic about our future,” said CEO Bob Iger. said in a statement.

In the fourth quarter, we saw “one of the best quarters in our film studio history, improved profitability in our streaming business, a record 60 Emmy Awards for the company, the continued strength of live sports and the unveiling of an impressive collection of new projects that coming to our Experiences segment,” the CEO added. “As a result of our strategies and focus on managing our businesses for both the short and long term, we differentiate ourselves from traditional competitors, leveraging the deepest and broadest set of entertainment assets in the industry to generate attractive returns and further advance our goals.”