Disney’s Q1 FY24 Earnings Results Webcast

D

DCBaker

Premium Member
Original Poster
With first quarter results to be announced later today, Julia Boorstin is set to interview Bob Iger on CNBC at 4:05pm ET.
 
Sirwalterraleigh

Sirwalterraleigh

Premium Member
Indy_UK said:
Personally I don’t think much will come from this. He’s never pressed hard on questions and will probably announce this Sports partnership with Fox and Warner as a smoke screen to everything else.
Click to expand...
I’m interested to see where they move shells to on the numbers

They SHOULD be kinda flat-ish?
But the drop of this sports thing yesterday makes me wonder

The park numbers are bad…at least the forecasts are. Terrible - in fact. Let’s see how it plays
 
Drew the Disney Dude

Drew the Disney Dude

Well-Known Member
In the Parks
Yes
Scared Kermit The Frog GIF
 
D

DCBaker

Premium Member
Original Poster
Financial docs have been released if you wish to read through them before the earnings call.


Financial Results for the Quarter:
  • Revenues for the quarter were comparable to the prior-year quarter at $23.5 billion.
  • Diluted earnings per share (EPS) for the quarter increased to $1.04 from $0.70 in the prior-year quarter.
  • Excluding certain items(1), diluted EPS for the quarter increased to $1.22 from $0.99 in the prior-year quarter.
Key Points:
  • Our first quarter earnings results reflect the progress we’ve made in our strategic transformation, as we continue to build from a position of strength.
  • We are achieving significant cost reductions across our businesses, as evidenced by the realization of over $500 million in selling, general and administrative and other operating expense savings across the enterprise in the first quarter.
  • We are on track to meet or exceed our $7.5 billion annualized savings target by the end of fiscal 2024, while we continue to look for further efficiency opportunities.
  • Based on the strength of first quarter results as well as our expectations for the balance of the year, we expect full year fiscal 2024 earnings per share excluding certain items(1) to increase by at least 20% versus 2023, to approximately $4.60.
  • Further, we continue to expect free cash flow(1) generation in fiscal 2024 to total roughly $8 billion.
  • We continue to expect to reach profitability at our combined streaming businesses in the fourth quarter of fiscal 2024, and are making tremendous progress in this area, with first quarter Entertainment DTC operating losses improving by nearly $300 million versus the prior quarter. We believe this business will ultimately be a key earnings growth driver for the Company.
  • Hulu subscribers increased by 1.2 million from the prior quarter. Disney+ Core subscribers decreased sequentially by 1.3 million, in line with prior guidance and reflecting a substantial price increase in the quarter as well as the end of the global summer promotion. Disney+ Core ARPU increased sequentially by $0.14 versus the fourth quarter.
  • We expect Disney+ Core subscriber net additions of between 5.5 and 6 million and ongoing positive momentum in ARPU in the second quarter.
  • ESPN’s domestic business grew both revenue and operating income year over year in the first quarter, and we continue to build ESPN into the world’s preeminent digital sports platform.
  • At Experiences, we generated all-time records in revenue, operating income, and operating margin in the first quarter, and we recently celebrated the well-received openings of World of Frozen at Hong Kong Disneyland Resort and Zootopia at Shanghai Disney Resort.
  • In February 2024, the Board of Directors approved a new share repurchase program effective February 7, 2024; we plan to target $3 billion in repurchases in fiscal 2024.
  • The Board also declared on February 7, 2024 a cash dividend of $0.45 per share - an increase of 50% versus the last dividend paid in January - payable July 25, 2024 to shareholders of record at the close of business on July 8, 2024.
Domestic Parks and Experiences

The decrease in operating income at our domestic parks and experiences reflected lower results at our domestic parks and resorts, largely offset by higher results at Disney Cruise Line.
  • At our domestic parks and resorts, lower results in the current quarter compared to the prior- year quarter were due to:
    • A decrease at Walt Disney World Resort reflecting a modest decrease in revenues and higher costs. These impacts were due to:
      • Lower volumes due to decreases in attendance and occupied room nights, both of which reflected the comparison to the 50th anniversary celebration in the prior-year quarter
      • Higher costs due to inflation, partially offset by cost saving initiatives and lower depreciation
      • Increased guest spending due to higher average ticket prices, partially offset by lower average daily room rates
    • Results at Disneyland Resort were comparable to the prior-year quarter as revenue growth was largely offset by an increase in costs. These impacts were attributable to:
      • Increased guest spending primarily due to higher average ticket prices
      • Attendance growth
      • Higher costs driven by inflation
  • Growth at Disney Cruise Line was due to increases in average ticket prices and passenger cruise days, partially offset by higher costs
International Parks and Experiences

Higher international parks and experiences’ operating results were due to:
  • Growth at Shanghai Disney Resort due to:
    • Higher volumes attributable to an increase in attendance. The park was open for all of the current quarter compared to 58 days in the prior-year quarter as a result of COVID-19 related closures.
    • Guest spending growth due to an increase in average ticket prices
  • Higher operating income at Hong Kong Disneyland Resort attributable to:
    • Guest spending growth primarily due to an increase in average ticket prices
    • Higher volumes resulting from increases in attendance, which benefited from the park being open for more days in the current quarter, and occupied room nights
    • Increased costs driven by inflation and new guest offerings
  • Results at Disneyland Paris were comparable to the prior-year quarter due to:
    • Higher costs primarily attributable to increased operations support costs and inflation
    • Lower volumes primarily due to a decrease in attendance. The prior-year quarter included the 30th anniversary celebration.
    • The comparison to a loss in the prior-year quarter on the disposal of our ownership interest in Villages Nature
Screenshot 2024-02-07 at 4.09.38 PM.png
 
HauntedPirate

HauntedPirate

Park nostalgist
Premium Member
🤬 🤬 🤬

In February 2024, the Board of Directors approved a new share repurchase program effective
February 7, 2024; we plan to target $3 billion in repurchases in fiscal 2024.
 

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