Disney’s Q3 FY24 Earnings Results Webcast

[Tha Realest]

The stock market price is wholly irrelevant right now as the entire market took an odd blip down a couple of days ago. You can’t draw any conclusions about any individual stock under those circumstances IMO.

You can when the central focus on Wednesday was the earnings report.

 

[MisterPenguin]

Not to be pedantic but streaming as a whole was profitable but D+ specifically was not. Though the trends suggest D+ itself will be functioning in the black soon enough.

Indeed.

In the previous quarter, ESPN+ was in the red. And so DTC was profitable by counting only D+ and Hulu and leaving out ESPN+.

In this past quarter, D+ and Hulu were in the red, but they added in ESPN+ which did very well this past quarter (I think, mostly due to advertising). All three together were in the black.

We really don't know if D+ in and of itself has ever passed the "made a profit" threshold, because D+ and Hulu aren't broken out separately. And in a way, they shouldn't. Outside of North America, Hulu is basically "Star" which exists within D+. And in the U.S., D+ and Hulu are in the process of merging.

So, in the previous quarter, D+ did indeed hit "profitability" because it's intertwined with Hulu now. And together, they made a profit.

This quarter, they were about $20M short. Last year at this time, it was $500M short. So, it's come a long way. And with the price raise, should hit and maintain profitability.

 

[JoeCamel]

Indeed.

In the previous quarter, ESPN+ was in the red. And so DTC was profitable by counting only D+ and Hulu and leaving out ESPN+.

In this past quarter, D+ and Hulu were in the red, but they added in ESPN+ which did very well this past quarter (I think, mostly due to advertising). All three together were in the black.

We really don't know if D+ in and of itself has ever passed the "made a profit" threshold, because D+ and Hulu aren't broken out separately. And in a way, they shouldn't. Outside of North America, Hulu is basically "Star" which exists within D+. And in the U.S., D+ and Hulu are in the process of merging.

So, in the previous quarter, D+ did indeed hit "profitability" because it's intertwined with Hulu now. And together, they made a profit.

This quarter, they were about $20M short. Last year at this time, it was $500M short. So, it's come a long way. And with the price raise, should hit and maintain profitability.

So we should expect the company to rely on D+ profits and they can stop raising park prices to drive profit?
At last, at long last we have another division to carry the weight - praise be

 

[MisterPenguin]

So we should expect the company to rely on D+ profits and they can stop raising park prices to drive profit?
At last, at long last we have another division to carry the weight - praise be

At the very least, it will stop being in the negative and sucking up resources, now that it'll be self-sufficient.

 

[Vegas Disney Fan]

At the very least, it will stop being in the negative and sucking up resources, now that it'll be self-sufficient.

I think this is the important part, I question whether D+ will ever recoup the tens of billions they’ve spent on it but at least it won’t be dragging the rest of the company down financially anymore.

Ideally it’ll become wildly profitable and benefit the other divisions but I’ll settle for breaking even at this point.

 

[doctornick]

I think this is the important part, I question whether D+ will ever recoup the tens of billions they’ve spent on it but at least it won’t be dragging the rest of the company down financially anymore.

It’s worth noting that D+ has been building up its intrinsic value all this time so it’s not like that spent money is “down the drain” with nothing to show. As a comparison Hulu has been valued somewhere between $27.5 and $40.8B. In theory could always sell D+ and likely recoup the investment if that were an issue.

 

[Sir_Cliff]

All over *your* web, sure. But the internet has gotten astoundingly insular and curtails to your personal interests more than it ever did. I think you’ll find that if you talk to people in real life the topic is not as present as it is on your computer.

I don’t disagree that Epic is a huge deal for Universal and that it’s going to be a booster for the company in the long-term. But I think if you’re expecting next year to be an opening of the floodgates and a money printer for Universal, I think you need to wait until 2027-28.

I very much agree. These parks are volume businesses which depend on tens of thousands of people streaming through their gates day in, day out. I'm sure there is a healthy number of people who are holding off on visiting this year in anticipation of Epic Universe, but I also think people are overplaying its importance in the general softness of the theme park market in Orlando right now and how that has played out at Universal. There is definitely a lot of buzz among theme park enthusiasts about the park, but I would be very surprised if there are tens of thousands of families for whom the park's opening is such a big event that they're taking vacations elsewhere this year so they can be there during Epic Universe's opening year in 2025.

Again, it's a little like how everyone on here seems to have evidence from their own family or people they know that people are migrating in droves from WDW to UOR. Yet, the numbers don't show that at all.