The Walt Disney Company’s Board of Directors issued a letter to shareholders on February 12, 2024, highlighting the company’s strong first-quarter fiscal 2024 performance and outlining its strategic initiatives aimed at driving long-term growth and shareholder value.
Financial Performance and Shareholder Returns
Disney reported significant year-over-year growth, with a 49% increase in diluted earnings per share (EPS) to $1.04, and a 23% rise in adjusted EPS to $1.22.
The company is on track to generate approximately $8 billion in free cash flow for fiscal year 2024 and anticipates a full-year adjusted EPS increase of at least 20%, reaching around $4.60.
In January 2024, Disney reinstated its cash dividend and declared a 50% increase, payable in July 2024. Additionally, the company announced a $3 billion share repurchase program for fiscal year 2024, marking its first buybacks since 2018.
Strategic Initiatives and Content Expansion
Disney emphasized its commitment to strategic transformation, focusing on content creation, technological innovation, and global expansion.
Upcoming theatrical releases include sequels to Moana and Inside Out, as well as new installments of Deadpool, Alien, and Planet of the Apes. In its Parks and Experiences segment, Disney achieved record revenue, operating income, and operating margin in the first quarter, with new attractions like World of Frozen at Hong Kong Disneyland and Zootopia at Shanghai Disney Resort receiving positive guest feedback.
The company also entered into a significant collaboration with Epic Games, investing in the development of a new gaming and entertainment universe that integrates Disney’s brands with Fortnite.
Board of Directors and Shareholder Voting
The Board urged shareholders to vote the WHITE proxy card for all 12 of Disney’s nominated directors in the upcoming Annual Meeting on April 3, 2024.
The Board does not endorse the nominees proposed by activist investors Trian Fund Management and Blackwells Capital, believing that their candidates lack the necessary qualifications to support Disney’s strategic objectives.
