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

[Sirwalterraleigh]

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

Here’s what no one should like:

1. Revenues up in parks ONLY because of line fees - something that is becoming universally detested by diehards and regular casuals. So what would it be if they didn’t have paid fastpsss? That’s not “growth” at all and it’s not sustainable
2. More bad sequels that dilute what they peddle.
3. Layoffs across the board. You might get a temp Wall Street bump but it’s not a sign of company strength/growth.
4. Any reduction in capex based on Disneys ledger can only be viewed as a red flag. Amusement assets stagnate/decay. That’s the deal with them if you don’t think one step ahead.
5. The D+ subscriber numbers are worrisome. So how you gonna make trillions? Charge more every month for it. That should work.

 

[Tha Realest]

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.

I hadn’t thought of the WDW-WDI-YouTube ecosystem that’s popped up. Lack of activity = lower views = lower income.

 

[GhostHost1000]

Ran across this today…had to share haha

 

[CastAStone]

what numbers do you like?

+8% revenue
+5% OI
Everything from Parks

Also the non-numbers:
Plans to license studio content to external streamers
The plan to make D+ work financially

Iger has a tough line to walk (as did each CEO since Miller) where he needs to keep the magic up on parks and studios and invest in high quality entertainment, but also stave off private equity lunatics who want to strip the company of everything that makes it different and make it into CBS/Viacom. One call is nothing in the grand scheme of things - and we both know that Iger probably has next to nothing to do with this quarter’s actual results - but those numbers are trending in the right direction.

 

[HauntedPirate]

Re…..diculous

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

Iger’s “de-risk” mindset, front and center. Such a creative CEO…

 

[HauntedPirate]

+8% revenue
+5% OI
Everything from Parks

Also the non-numbers:
Plans to license studio content to external streamers
The plan to make D+ work financially

Iger has a tough line to walk (as did each CEO since Miller) where he needs to keep the magic up on parks and studios and invest in high quality entertainment, but also stave off private equity lunatics who want to strip the company of everything that makes it different and make it into CBS/Viacom. One call is nothing in the grand scheme of things - and we both know that Iger probably has next to nothing to do with this quarter’s actual results - but those numbers are trending in the right direction.

The problem with the parks is the only growth is in prices. They can try to keep squeezing more out of that vein, but eventually the line is going to clot.

 

[Tha Realest]

The problem with the parks is the only growth is in prices. They can try to keep squeezing more out of that vein, but eventually the line is going to clot.

Yep. I believe they admit attendance has flatlined. Of course they say it’s due to Covid but boast about how strong attendance is. Almost all the increased revenue is from new streams (Genie+, ILL), increased ticket prices (variable tickets, less APs), or cuts (more efficient staffing due to reservations, less eating/entertainment options, mothballed WDI, DME).

 

[GimpYancIent]

Yep. I believe they admit attendance has flatlined. Of course they say it’s due to Covid but boast about how strong attendance is. Almost all the increased revenue is from new streams (Genie+, ILL), increased ticket prices (variable tickets, less APs), or cuts (more efficient staffing due to reservations, less eating/entertainment options, mothballed WDI, DME).

Yes. Every move drives monetary resources (I mean guests / customers) away.

 

[Sirwalterraleigh]

Iger’s “de-risk” mindset, front and center. Such a creative CEO…

Won’t put out the fire in San Francisco though…still

 

[CaptainAmerica]

The problem with the parks is the only growth is in prices. They can try to keep squeezing more out of that vein, but eventually the line is going to clot.

That... is not correct.

"Operating income growth at our domestic parks and experiences was due to higher volumes and increased guest spending, partially offset by cost inflation, higher operations support costs and increased costs for new guest offerings. Higher volumes were attributable to increases in passenger cruise days, attendance and occupied room nights. Guest spending growth was due to an increase in average per capita ticket revenue driven by Genie+ and Lightning Lane, which were introduced in the prior-year quarter."

Variance explanations are listed in decreasing order of magnitude, meaning the fact that "volumes" are listed before "increased guest spending" means that values increased by a greater percentage than prices.

 

[Sirwalterraleigh]

The problem with the parks is the only growth is in prices. They can try to keep squeezing more out of that vein, but eventually the line is going to clot.

Yep. I believe they admit attendance has flatlined. Of course they say it’s due to Covid but boast about how strong attendance is. Almost all the increased revenue is from new streams (Genie+, ILL), increased ticket prices (variable tickets, less APs), or cuts (more efficient staffing due to reservations, less eating/entertainment options, mothballed WDI, DME).

They didn’t even try to maneuver/hide it…

What little increase they saw - and it isn’t much - is due to grumpy faced people buying/booking time slots on their phone.

That is NOT growth…or brand strength either…or new potential revenue streams. It doesn’t strengthen the bonds or ties for the consumers.

Did they talk about raw attendance? If so…I missed it

 

[Sirwalterraleigh]

+8% revenue
+5% OI
Everything from Parks

Also the non-numbers:
Plans to license studio content to external streamers
The plan to make D+ work financially

Iger has a tough line to walk (as did each CEO since Miller) where he needs to keep the magic up on parks and studios and invest in high quality entertainment, but also stave off private equity lunatics who want to strip the company of everything that makes it different and make it into CBS/Viacom. One call is nothing in the grand scheme of things - and we both know that Iger probably has next to nothing to do with this quarter’s actual results - but those numbers are trending in the right direction.

Where did the revenue come from?

If it was from Attendance increases or merch sales…it ain’t good.


That it? That’s why Bob should get another 5 year contract a couple more shills on the board?

Excessive consumption of koolaid can cause serious health risks

 

[GimpYancIent]

That... is not correct.

"Operating income growth at our domestic parks and experiences was due to higher volumes and increased guest spending, partially offset by cost inflation, higher operations support costs and increased costs for new guest offerings. Higher volumes were attributable to increases in passenger cruise days, attendance and occupied room nights. Guest spending growth was due to an increase in average per capita ticket revenue driven by Genie+ and Lightning Lane, which were introduced in the prior-year quarter."

Variance explanations are listed in decreasing order of magnitude, meaning the fact that "volumes" are listed before "increased guest spending" means that values increased by a greater percentage than prices.

Volume nothing. Increased guest spending yes, hell, keep increasing prices and fees of course there will be more guest spending. Does not mean more guests, just more spending (not because the guests want to spend more either).

 

[CaptainAmerica]

Does not mean more guests

That's exactly what it means.

 

[CaptainAmerica]

Bob live on CNBC.

He's wearing a jacket, not his Uncle Bob sweater, so you know he's serious.

 

[CaptainAmerica]

Bob: "My preference is to stay here for two years."

Lol he's going to be there way longer than two years.

 

[CaptainAmerica]

This is a bona fide interview with real questions. Kudos to David Faber. Really challenging Bob on Disney+ strategy, pricing, subscribers, content spend.

 

[DCBaker]

Bob on CNBC - We got intoxicated by our own subscriber growth.

 

[CaptainAmerica]

Really hammering the idea that they're going to cut down on General Entertainment content spending. It's going to further fuel speculation of a Hulu sale.

 

[CaptainAmerica]

Oh **** he's going to sell Hulu.

EDIT, BECAUSE THIS IS BEING TAKEN OUT OF CONTEXT: This was me speculating based on Bob saying "everything is on the table" when it comes to Hulu. He did not say, explicitly, that they're selling Hulu.