Disney’s fourth quarter earnings beat expectations.
Disney recently announced its fourth quarter earnings for fiscal year 2023, which exceeded market expectations, mainly due to lower costs and continued growth in ESPN+ and theme park businesses, but lower advertising revenue weighed on revenue. The main financial highlights are as follows:
· Revenue was $21.24 billion in the fourth quarter, up 5% from the same period last year, slightly below market expectations.
· Cost control was effective, compared to the original target of reducing costs by about $5.5 billion, it is expected to achieve a cost reduction of about $7.5 billion by the end of fiscal year 2024.
· Direct-to-consumer (DTC) streaming business narrowed its loss from $1.5 billion in the same period last year to about $400 million in the fourth quarter, due to revenue growth and cost reduction. It is estimated that the streaming business will turn profitable in 2024.
· Income from continuing operation before taxes was $1,007 million in the fourth quarter, up about 168% from last year, exceeding market expectations.
· Free cash flow was $4,897 million in fiscal year 2023, up about 362% from last year.
Overall, Disney’s (Moody’s A2 / S&P A- / Fitch A-) latest earnings report shows that its main businesses are operating steadily and cost control has been appropriate in recent years, and the company has positive free cash flow in the long term, maintaining a solid credit quality.
Secondary market trading
· DIS 2.65% 2031 bond recently traded near 5.51%, which has decreased by 38bps since the end of October.
· DIS 3.60% 2051 bond recently traded near 5.73%, which has decreased by 49bps since the end of October.
迪士尼第四季獲利優於預期
迪士尼於日前公布其2023財年第四季財報，第四季獲利超出市場預期，主要由於成本下降 ，以及ESPN+與主題樂園業務的持續增長，但廣告營收減少則令營收承壓。主要財務數據摘要如下：
· 第四季營收212.41億美元，較去年同期成長5%，略低於市場預期。
· 成本控制具成效，相較於原先降低成本約55億美元的目標，預計將於2024財年底之前達到削減成本約 75 億美元的目標。
· 串流媒體（DTC Streaming）業務由於營收增長、成本下降，使虧損自去年同期15億美元持續收窄至今年第四季約4億美元，預估 2024年將轉虧為盈。
· 第四季稅前稅前利潤10.07億美元，較去年大幅成長約168%，超出市場預期。
· 2023全年自由現金流48.97億美元，較去年大幅成長約362%。
整體而言，迪士尼（Moody’s A2 / S&P A- / Fitch A-）的最新財報顯示，主要業務穩健運行且近年成本控制得宜，加上公司自由現金流長期為正，債信維持良好。
次級市場交易狀況
· 迪士尼（DIS）2.65% 2031年券目前收益率約5.51%，10月底至今走低38bps
· 迪士尼（DIS）3.60% 2051年券目前收益率約5.73%，10月底至今走低49bps