Disney’s Q1 FY23 Earnings Results Webcast - Wednesday, Feb 8, 2023

[Sirwalterraleigh]

I really don’t think Peltz has a chance. And I think he knows that. Disney’s response was very strong. Doesn’t mean they didn’t make mistakes. I think the Chapek contract was bonkers levels of idiotic. But Peltz mainly focused on the Fox acquisition because he claimed it ruined Disney’s balance sheet and “took away the dividend.” But that simply wasn’t true. Disney’s balance sheet was perfectly fine (and still isn’t bad by any stretch of the imagination) after the Fox acquisition. It was COVID that significantly increased their debt, not Fox.

The Peltz camp never responded to Disney’s response. Not a word. They know they’re not going anywhere.

A chance at what?

What do you think he’s after? The bullet points…or maybe some other things?

I think Peltz is a yutz…
But a very successful corporate raiding yutz. He has some big named notches on his bedpost.

He could be senile…but I doubt he launched this Disney thing because he’s bored or doesn’t know what he’s doing.

None of iger’s responses since he came back have been “strong”…
And todays report is blame and bad numbers. They don’t paint the right picture if you look at them.

He did claim avatar…a movie Disney had nothing to do with. That was smart at least.

And remember why Iger “returned”…you think Wall Street is buying what he says Happened?

Only if they’re really stupid billionaires.

 

[CastAStone]

And todays report is blame and bad numbers

I feel like I’m taking crazy pills. Did we read the same report?

 

[Disney Analyst]

$0.15???

Where did the growth come from? What are you seeing in that I’m missing?

And as far as Iger goes…he already has an end date…
Peltz is likely to ensure it holds. No cute extension this time.

Respectfully, I think a few here are missing what’s already happened.

The market was closed during the call from what I saw, but the price in after hours was rising throughout the call; and is currently up 6.06.

 

[brb1006]

Good. I haven't seen Strange World or Lightyear but I feel like the last true, traditional villains with personality were Ercole and Screenslaver.

Ercole doesn't count as a traditional villain, while Screenslaver was a twist villain (plus Pixar doesn't count). I strongly believe Dr. Facilier was the last true Disney Villain that was actually taken seriously.

Strange World doesn't have a villain and relied more on the "Generational Trauma" approach that both DIsney and Pixar has been doing for a while now. Also I hated how they handled Zurg in Lightyear.

 

[CastAStone]

Was Robert Callaghan not a villain? He murdered the main character’s brother to steal his invention.

Dawn Bellweather was a domestic terrorist.

Mother Gothel repeatedly attempted to murder people to get her way.

I agree the traditional villain has been less common but it’s not been non-existent either.

 

[MisterPenguin]

GRAAAH!!! That stupid old Iger hack needs to go! They need to sell Fox in order to make up for the losses!

Iger is lying I believe, trying to hide the truth.

No and no.

 

[Sirwalterraleigh]

I feel like I’m taking crazy pills. Did we read the same report?

You must have..because it’s not great.

A few of y’all REALLY gotta get over the Iger thing…the dream is over.

You’ll all have this found memories in castaway cay together from the 2016 PML cruise

But let me ask a different way: what numbers do you like?

 

[Sirwalterraleigh]

No and no.

Cause he’d go to jail, right?

…I don’t think he’s lying…now glossing and diverting? Yeah…every call has that

 

[SplashJacket]

Well it just wasn't the same without constant talk of "robust content pipelines", "strategic pillars," "Genie+", and "Yield Management."

I kid

I didn't like everything that was said, but listening to Iger is infinitely better than Chapek.

Curious to hear what specifically you didn't like, besides the obvious IP infusion and such.

 

[Stripes]

A chance at what?

What do you think he’s after? The bullet points…or maybe some other things?

I think Peltz is a yutz…
But a very successful corporate raiding yutz. He has some big named notches on his bedpost.

He could be senile…but I doubt he launched this Disney thing because he’s bored or doesn’t know what he’s doing.

None of iger’s responses since he came back have been “strong”…
And todays report is blame and bad numbers. They don’t paint the right picture if you look at them.

He did claim avatar…a movie Disney had nothing to do with. That was smart at least.

And remember why Iger “returned”…you think Wall Street is buying what he says Happened?

Only if they’re really stupid billionaires.

I think Wall Street has a lot of confidence in Iger. I think Peltz‘s arguments for why he deserves to be on the board more than Michael Froman are weak. And I don’t think Peltz is going to get many votes at all. Peltz has never faced Zenia Mucha before LOL!

You must have..because it’s not great.

A few of y’all REALLY gotta get over the Iger thing…the dream is over.

You’ll all have this found memories in caraway cay together from the 2016 PML cruise

But let me ask a different way: what numbers do you like?

The whole industry is facing significant macroeconomic challenges at the moment. The parks are extremely strong. Linear TV is in decline (obviously) and everybody is struggling in streaming right now. The numbers aren’t great but that was always the expectation.

Obviously Chapek was not a good CEO but the poor quarterly numbers the company is experiencing right now are nobody’s fault, certainly not Chapek’s. In fact, Disney’s own guidance to investors since 2019 was that this would be a time of peak operating losses, so it’s hardly surprising.

I feel like the mindset that these numbers are intolerable is promoting a view that short-term quarterly profits should come at the expense of long-term growth. I know based on your posting history that you are not of that view.

 

[MisterPenguin]

Here's the Powerpoint summary:

https://thewaltdisneycompany.com/app/uploads/2023/02/Q1_FY23_Earnings_Presentation.pdf

 

[MisterPenguin]

And a detailed spreadsheet of Streamer figures for the past 3 years...

https://thewaltdisneycompany.com/app/uploads/2023/02/Supplemental-Information-for-Direct-to-Consumer-02-08-23.xlsx

 

[MisterPenguin]

And a detailed spreadsheet of Streamer figures for the past 3 years...

https://thewaltdisneycompany.com/app/uploads/2023/02/Supplemental-Information-for-Direct-to-Consumer-02-08-23.xlsx

And this is what got Chapek in trouble. Especially being nonchalant about it...

 

[Elijah Abrams]

Bob defends the Fox purchase.

He's defending the acquisition for now, but it may likely change in the future...

(Near future if lucky; Only the 20th Century, Searchlight, and 20th TV assets could be sold off)

 

[Lilofan]

It's possible that they're all layoffs, but Bob chose his words carefully and by the way he phrases it, it's not NECESSARILY all layoffs.

In my previous company , salaried were given packages to leave. If not enough takers , then layoffs began the following week and a number of my peers emptied out their offices and were walked out the door by security.

 

[Tha Realest]

There’s a separate thread on the topic but yes Park CapEx is being reduced to $6B instead of $6.7B. Still a lot of money though.

Yes but That overall number includes all foreign parks and cruise ships as well. I read it to mean a $700M reduction specifically to the US parks

 

[Br0ckford]

Creatives?

Toy Story, zootopia and Frozen sequels....are there still any creatives?

 

[Sirwalterraleigh]

I think Wall Street has a lot of confidence in Iger. I think Peltz‘s arguments for why he deserves to be on the board more than Michael Froman are weak. And I don’t think Peltz is going to get many votes at all. Peltz has never faced Zenia Mucha before LOL!

Well he just wants it the same. Same old Bob and the same old not sharing his toys. It’s very unlikely that the proxy fight is a blind flyer…It would be a huge story in if it’s self if they get 11 votes withheld. There’s more of a strategy here than the Iger camp is letting on…all the things from yesterday that came out are desperation moves when packaged together.

The whole industry is facing significant macroeconomic challenges at the moment. The parks are extremely strong. Linear TV is in decline (obviously) and everybody is struggling in streaming right now. The numbers aren’t great but that was always the expectation.

The reality is Bob has no answers for this other than “hey…trust me!!”

Obviously Chapek was not a good CEO but the poor quarterly numbers the company is experiencing right now are nobody’s fault, certainly not Chapek’s. In fact, Disney’s own guidance to investors since 2019 was that this would be a time of peak operating losses, so it’s hardly surprising.

So are they posting huge profits every quarter or not? Because there’s only one option when you jump into shark infested waters.
Does anyone actually buy this chapek nonsense now?

I feel like the mindset that these numbers are intolerable is promoting a view that short-term quarterly profits should come at the expense of long-term growth. I know based on your posting history that you are not of that view.

And that is 100% based on the decisions of Robert A. Iger

He took them to a place that will eventually put them in the crosshairs. It’s not why Disney is the brand/strength that it maintained for a long time.

It will come to a head before Toy Story 13 comes out.
It’s truly sad…actually.

 

[Sirwalterraleigh]

Toy Story, zootopia and Frozen sequels....are there still any creatives?

Re…..diculous

At least 3 gigantic leads were buried. This was the last/most embarrassing one.

 

[Sirwalterraleigh]

Yes but That overall number includes all foreign parks and cruise ships as well. I read it to mean a $700M reduction specifically to the US parks

Can’t wait to see the vlogs from the first day of tron…
…might want to hold off rushing over there if “new” is a feeling you like. Gonna be a long haul after.