Sector: Communication Services | Focus: Movies & Entertainment
HQ: Burbank, California
Financial Risks
The Walt Disney Company faces risks from economic downturns, currency fluctuations, technological changes, competition, contract renewals, cybersecurity threats, regulatory changes, employee relations, and costs associated with acquisitions (e.g., Hulu, TFCF). Increased borrowing costs, potential credit rating downgrades, and litigation risks further compound these challenges. Uncertainties in new business strategies and forecasting also pose significant risks.
Financial Upside
Disney's revenue increased 3% in fiscal 2024, with strong growth in DTC services and experiences. Operating income improved significantly at Entertainment, driven by DTC success. Restructuring and impairment charges were lower than the prior year. The Star India transaction, though with associated impairments, presents a potential long-term opportunity. The company projects continued investment in experiences and DTC, aiming for future revenue growth.
