Disney's Film and Streaming Businesses on the Rise... Dividend Increased by 33%

Starting Next January, $0.50 Each in January and July, Totaling $1 Per Week

Global media giant The Walt Disney Company (hereinafter Disney) has decided to increase its annual dividend for 2025 by 33%, paying $1 per share. This is due to the recovery in profitability of its film studio and streaming businesses.

Bob Iger, Disney's Chief Executive Officer (CEO), stated in a press release on the 4th (local time), "As the company operates with new strengths, we are pleased to increase dividends to shareholders while continuing to invest in the future." He announced that dividends will be paid twice, 50 cents each in January and July next year.

Previously, Disney paid a dividend of 75 cents per share in the 2024 fiscal year. Bloomberg noted that this dividend increase follows Disney's confident revenue outlook for the next three years announced last November, as well as two consecutive years of profitability in its streaming TV business segment. During the pandemic, Disney's theme parks and sports streaming businesses were hit hard, leading to a complete suspension of dividends in 2020. However, dividends resumed last year when activist investor Nelson Peltz attempted a takeover.

The significant improvement in performance also fueled Disney's dividend expansion. In the third quarter, Disney reported revenue of $22.6 billion (approximately 32 trillion KRW) and adjusted earnings per share (EPS) of $1.14 (about 1,600 KRW), surpassing market expectations. Notably, hits like "Inside Out 2" and "Deadpool and Wolverine" drove revenue in the entertainment sector, which includes the film studio and streaming platforms. Recently, Disney's animated film "Moana 2" also set the record for the highest-grossing Thanksgiving release in U.S. history, maintaining the positive momentum.

Reuters Yonhap News

Disney, which had rarely provided future earnings forecasts, unusually announced a three-year earnings guidance along with its third-quarter results. Disney expects operating profit of about $1 billion (approximately 1.406 trillion KRW) from its streaming business in 2025, and anticipates double-digit year-over-year growth in earnings per share for 2026 and 2027.

This rosy outlook is attributed to the Disney+, Hulu, and ESPN+ trio beginning to shine after years of pouring astronomical amounts of money into competing against the OTT giant Netflix without significant results. While Disney's streaming business posted losses of about 550 billion KRW in the third quarter last year, it turned profitable in the second quarter and recorded an operating profit of $321 million (approximately 454.6 billion KRW) in the third quarter.

Meanwhile, on the New York Stock Exchange that day, Disney's stock closed at $116.99, up 0.46% from the previous session. It has risen about 30% so far this year.