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Disney’s Fiscal Full Year and Q4 2022 Earnings Results Webcast
- Thread starter DCBaker
- Start date
CapEx will grow from $5B to $6.7B. (If I remember those numbers as they flew by.)
Q: Ben from Morgan Stanley: What's the consumer experience be like with the price increase for subs?
Parks margins: Margins were up 3 Qs, but down this last... what's up with that?
Bob: More choices good. We'll advertise as needed. We've done this with Hulu, so we know what we're doing.
Christine: This 4Q is lower indeed, and historically 4Q is lower. Revenue affected by the season and Hurricane Ian. Expense affected bringing more attractions coming back, new ship.
Parks margins: Margins were up 3 Qs, but down this last... what's up with that?
Bob: More choices good. We'll advertise as needed. We've done this with Hulu, so we know what we're doing.
Christine: This 4Q is lower indeed, and historically 4Q is lower. Revenue affected by the season and Hurricane Ian. Expense affected bringing more attractions coming back, new ship.
A 20% price increase with a loss of 10% of the subscribers is a 10% revenue increase.
That's seems fairly substantial without any obvious big project to pin it on.
Q: Phil from JP Morgan: Streamers... will there *really* be a profit in 2024? And what about provisions you mentioned?
Christine: Profit will be by Quarter, not Year. And stuff happens outside our control.
Christine: Profit will be by Quarter, not Year. And stuff happens outside our control.
Q: Phil follow-up. How will you cut costs?
Christine: We're looking at. Some cuts, some efficiencies, some structural.
Christine: We're looking at. Some cuts, some efficiencies, some structural.
Q: Michael Nathanson from Moffit Nathanson: If economy slows, what levers do you have?
Describe streamer finance more so.
Christine: We have have levers: E.g. discounting. But not use it as much as we did during recession. Park reservations allow flexibility. Tiered product levels. Changes to AP. Technology advancements (mobile ordering, contactless check in).
During pandemic, we did remove permanently some expenses.
Describe streamer finance more so.
Christine: We have have levers: E.g. discounting. But not use it as much as we did during recession. Park reservations allow flexibility. Tiered product levels. Changes to AP. Technology advancements (mobile ordering, contactless check in).
During pandemic, we did remove permanently some expenses.
Follow-up: DMED guidance?
Christine: recap of what was already said.
Christine: recap of what was already said.
doctornick
Well-Known Member
The number of people who did 3 year deals for D+ is a very small percentage. I think it was on D23 members who were eligible right? Think about how much Disney+ subs increased in the first year compared to what it was at launch - everyone with the 3 year deal would have been at launch. I think it was only ~10 million subs at launch.
From Barkely's: About guidance on streamers... churn? sub growth? Can you make it more profitable? (as if Disney hates profits /smh)
Bob: Yeah, we're working on making it profitable. History is when we raise cost, we aren't hit by significant sub losses.
Bob: Yeah, we're working on making it profitable. History is when we raise cost, we aren't hit by significant sub losses.
From Stephen, Wells Fargo: ESPN stuff moving from linear to streamer as cord cutting is happening? Why is CapEx is so much more?
Bob: ESPN is a premier brand. But... linear is declining. So, we're moving to digital. There's synergy with it being part of Disney/Bundle. We're using linear and streaming both to full capacity.
Christine: Some of this upcoming year's CapEx is slippage from the previous years' unspent. Some is consumer facing, some is structural.
Bob: ESPN is a premier brand. But... linear is declining. So, we're moving to digital. There's synergy with it being part of Disney/Bundle. We're using linear and streaming both to full capacity.
Christine: Some of this upcoming year's CapEx is slippage from the previous years' unspent. Some is consumer facing, some is structural.
Sirwalterraleigh
Premium Member
…because everyone is being overcharged for everything.
We have to read between the lines. Wall Street is demanding price gouging…those that don’t do it enough are penalized.
Uh oh.
All day - however - it’s being given some mystical term…as if it’s a “force of nature”
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From Micheal: Sequential fiscal decline from foreign stuff?
Sports Rights?... other competitors making things tough?
Christine: ARPU foreign exchange is half of the decline. Also, lower Pay per View at ESPN.
Bob: We think we have a strong position, strong deal. Be disciplined and don't over pay. Chose the right events.
Sports Rights?... other competitors making things tough?
Christine: ARPU foreign exchange is half of the decline. Also, lower Pay per View at ESPN.
Bob: We think we have a strong position, strong deal. Be disciplined and don't over pay. Chose the right events.
Sirwalterraleigh
Premium Member
So gamble you won’t be dumped for overpricing? Sound strategy
So Espn is dying…nothing breaking there.
CastAStone
5th gate? Just build a new resort Bob.
A hostile takeover of a company trading at 57 times earnings? That would be something.
Dranth
Well-Known Member
Yep, it is gross how much every last shred of any public company need to be optimized to squeeze the customer dry. Gone are the days of making "enough" money and having a well run, reasonably profitable company. Now it's all growth, growth and more growth or "The Street" wets their pants and goes running to the next big thing.
Sirwalterraleigh
Premium Member
I laugh at how Robert Reich spends all day on Twitter pointing out that global price gouging is the main problem of the day
Because:
1: he’s 101% correct
2: his legacy and decisions lead to this day in many ways
If it's 3 million at that deep discount, the price increase for that group is from about $3.92/month to $6.67 (if they lock in November 13 for a year before the price hike). That's an increase of $2.75 per month (or about 70%), or $8.250,000 in total per month, or $100,000,000 per year. Not bad. Clearly not enough to make up the deficit on its own.
But if you factor in an average 10% increase (net of those who leave) for the other 43.4 million domestic subscribers, of about .65 per month per subscriber, you get an increase in revenue of $28,000,000 per month or $338,000,000 per year. So that's about $438,000,000 in increased revenue from just the domestic subscriber base.
Perhaps attrition will be larger than my 10% guess, but the numbers are fairly easy to play with.