Disney (DIS) has announced a significant boost in its cash dividend by 50% alongside its fiscal first-quarter earnings report, surpassing expectations and narrowing streaming losses. With adjusted earnings of $1.22 per share, exceeding analysts’ projections of $0.99, Disney also anticipates a full-year fiscal 2024 earnings increase of at least 20% to $4.60 per share. Although revenue slightly missed expectations at $23.5 billion compared to the anticipated $23.8 billion, the company remains optimistic about its financial outlook.
The increased cash dividend of $0.45 per share will be payable on July 25 to shareholders of record on July 8, with an additional share repurchase program of $3 billion targeted for fiscal 2024. Amid challenges including a declining linear TV business and streaming losses, Disney’s CEO Bob Iger has committed to cost-cutting measures to address these issues. The company aims to meet or exceed its $7.5 billion annualized savings target by the end of fiscal 2024 while exploring further efficiency opportunities. Following the earnings report, Disney’s stock surged more than 10% in early afternoon trading on Thursday.
Alongside financial updates, Disney made several significant announcements, including plans to invest $1.5 billion in Fortnite maker Epic Games, positioning itself for a major entry into the video game market. Moreover, Disney+ will exclusively stream “Taylor Swift: The Eras Tour (Taylor’s Version),” and a sequel to the animated film “Moana” is set for release in November. The company also unveiled plans for an ESPN over-the-top (OTT) streaming service, scheduled for launch in fall 2025, preceding the football season kickoff. Despite narrowing streaming losses, Disney experienced a decline in core Disney+ subscribers due to price increases, although it anticipates adding 5.5 million to 6 million new users in the second quarter, particularly from Charter cable subscribers receiving complimentary Disney+ subscriptions. Disney remains focused on achieving profitability in its streaming businesses by the fourth quarter of fiscal 2024, emphasizing ongoing improvements in average revenue per user (ARPU) and initiatives to address password sharing.
Read More: Excitement Abounds: New Dragon Ball Trading Card Game Thrills Players
