5 February 2025
If you are covering Disney’s latest financial results, please find below a comment from Ben Barringer, technology analyst at Quilter Cheviot:
“Disney’s results were largely in line, but ultimately the business remains one that is hardly firing on all cylinders. This is perhaps to be expected for a massive conglomerate, but Disney could, and arguably is, doing more to stop itself being disrupted.
“The first notable point is there has been a big improvement in profit, with Disney+ delivering another period of profitability despite subscriber numbers declining. The wider entertainment business grew well too, helped by big blockbusters such as Moana 2, but the parks division continues to be affected by macroeconomic headwinds, while linear TV remains stuck in decline – where it will remain. Disney is taking steps to address its imbalance in quality with Netflix which will help the entertainment division, but it will be incredibly difficult to knock Netflix from its position of power.
“The problem Disney has is that it is just not growing at a fast enough rate to deserve a premium valuation from investors. It is an asset that has longevity and will likely serve consumers for generations to come – there is no denying the power of the brand. But in its current guise it is just not exciting or innovative enough to push itself into the same bracket as the tech giants and as such steady as she goes will likely be the mantra for some time yet.”
