Disney’s Q2 FY24 Earnings Results Webcast

[BrianLo]

Thought Wall Street loved positive streaming news. Why’s the stock down 10%?

Next quarter is negative

 

[peng]

Thought Wall Street loved positive streaming news. Why’s the stock down 10%?

They were open about how they thought all sectors (save theatrical) will be down (parks, streaming, merch, etc) next quarter. The investors calling in also seemed a bit impatient about parks investment and not happy with the upcoming slate, Bob's comments about said slate also boiled down to "we are going to milk the same few franchises forever to try to make 2019 happen again."

 

[doctornick]

I am definitely disappointed in the results today as I thought they would be rosier (especially related to overall streaming). The drop next quarter makes sense - and I can understand how that affects investors - but with the early timeslot today I would have expected more overwhelming positive numbers. I wonder whether the last month or so failed to meet the expectations the company had when they scheduled the earlier time.

So, the company did meet the target of "Disney+ profitability by the end of 2024" which was their goal at initial launch. That's a positive. But figuring out how to balance everything with ESPN - linear vs streaming vs bundled with D+ vs bundled with other providers, etc - will be a fascinating thing to see. And unlike with D+ or Hulu, there's really not a clear roadmap for how to execute it and be successful.

Edit: No one else has made an independent sports streaming offering that is profitable, have they? It's either been very niche/focused services on one sport/league or incorporated into general streaming.

 

[BrianLo]

I am definitely disappointed in the results today as I thought they would be rosier (especially related to overall streaming). The drop next quarter makes sense - and I can understand how that affects investors - but with the early timeslot today I would have expected more overwhelming positive numbers. I wonder whether the last month or so failed to meet the expectations the company had when they scheduled the earlier time.

So, the company did meet the target of "Disney+ profitability by the end of 2024" which was their goal at initial launch. That's a positive. But figuring out how to balance everything with ESPN - linear vs streaming vs bundled with D+ vs bundled with other providers, etc will be a fascinating thing to see. And unless with D+ or Hulu, there's really not a clear roadmap for how to execute it and be successful.

Ditto, the forward guidance on streaming was pretty weak.

Though an important distinction that is being misreported: D+ wasn’t yet profitable. DTC was (Hulu + D+ + the linear component of Hulu). Which I think is why they cause so much language confusion when they talk about D+ itself being profitable by Q4. Despite the segment clearly having always been on track to do so earlier.

It’s time for them to start providing better medium term guidance on DTC, however. The price hike was weirdly ineffective domestically at impacting ARPU. ARPU is actually extremely meagre compared to Netflix.

 

[lentesta]

I would myself like a question of how it is possible to turbocharge activations across the synergy machine.

That's where the flywheel comes in.

 

[Sirwalterraleigh]

The biggest challenge facing Disney and everyone else is getting that red bar down in a declining environment for linear and theatrical. Not clear how anyone can do that without ruining said industries.

The biggest deal is they’ve outpriced a significant chunk of their park clientele.

In a “good” economy

That’s a disaster.

Bobs gonna start talking about retirement again

Price hikes and cost cutting. The cornerstones of any healthy business segment.

But there’s unlimited runway for that, right?

 

[doctornick]

Though an important distinction that is being misreported: D+ wasn’t yet profitable. DTC was (Hulu + D+ + the linear component of Hulu). Which I think is why they cause so much language confusion when they talk about D+ itself being profitable by Q4. Despite the segment clearly having always been on track to do so earlier.

Hmmm, I could have sworn I read that both Hulu and D+ individually were profitable (and ESPN+ was a loss) but I agree that I can only see the combined Hulu/D+ profit. Where do you see the Hulu vs D+ breakdown for each service?

 

[Trauma]

I'm still not sure how they declare themselves #1:

View attachment 783795

They mean alphabetically.

Never underestimate the Disney spin.

 

[Advisable Joseph]

View attachment 783759

The March 7 movie may be animated:

Untitled Disney

www.boxofficemojo.com

Look at Summary Details for the date.

This comes along with a questionable but plausible rumor that Tiana might become a theatrical movie. (Search for Tiana)

 

[Sirwalterraleigh]

Thought Wall Street loved positive streaming news. Why’s the stock down 10%?

Because of unprecedented demand in the parks

This is message being sent to Iger by the investment groups:

“We saved you…now money…NOW”

 

[MisterPenguin]

The March 7 movie may be animated:

Untitled Disney

www.boxofficemojo.com

Look at Summary Details for the date.

This comes along with a questionable but plausible rumor that Tiana might become a theatrical movie. (Search for Tiana)

Wiki pages list that as an unannounced Pixar film.

It could be a placeholder from films that moved off that date, but they're just holding on to it just in case.

 

[Sirwalterraleigh]

This is the worrying thing for me. If I'm reading this correctly, the domestic Experiences increases come down to "inflation" and "we charged more for what we already have." Is that right?

I meant to respond earlier. That's exactly what I got out of the comments. Most revenue growth in the US parks came on the back of higher ticket prices. As has been stated innumerable times in these forums - That is not a sustainable strategy.

This is exactly what it means…and he had to admit bookings don’t look good

It’s like bobs kobyashi maru

 

[Advisable Joseph]

Wiki pages list that as an unannounced Pixar film.

The movie I'm talking about is March 2025. I think BoxOfficeMojo and IMDb have only had pages for that movie relatively recently. Of course, odd things can happen with pages for unannounced movies.

I think you are referring to a 2026 movie mentioned on Wikipedia?

 

[Joel]

I'd like to know what source of the footnote is where they claim ABC is the "#1 broadcast entertainment network".

Regardless of whether it's true or not, that's like bragging about being the #1 poster on WDWMAGIC.

 

[MisterPenguin]

The movie I'm talking about is March 2025. I think BoxOfficeMojo and IMDb have only had pages for that movie relatively recently. Of course, odd things can happen with pages for unannounced movies.

I think you are referring to a 2026 movie mentioned on Wikipedia?

Oops, I guess I am. Sorry for the confusion.

So... Wiki, then, doesn't even have an open Mar 7 2025 open date for any Disney animated movie.

Huh.

 

[Sirwalterraleigh]

Regardless of whether it's true or not, that's like bragging about being the #1 poster on WDWMAGIC.

“First of all…I’d like to thank GOD…my agent, my publicist…my entire team…
My aunt rosemary

…and that time that a seagull took a dump on me at Typhoon Lagoon in ‘91 that made me the poster I am today”

 

[CastAStone]

Regardless of whether it's true or not, that's like bragging about being the #1 poster on WDWMAGIC.

The #1 poster on WDWMagic is a bot that hasn’t posted in nearly 4 years.

Until fairly recently, #2 was a user who was banned before Charlie Sheen went crazy.

Either way, not much to brag on!

 

[Disstevefan1]

All it took was buying a profitable streaming service and integrating into an unprofitable one. Also slashing expenses by not producing anything!


Bob is Genius!

I presume the smart folks on Wall St. know D+ being profitable for a quarter know its fake, right?

 

[Laketravis]

The biggest deal is they’ve outpriced a significant chunk of their park clientele.

In a “good” economy

That’s a disaster.

Bobs gonna start talking about retirement again

But there’s unlimited runway for that, right?

Here now. Light crowds in Epcot. Resorts seem half empty. Same with all of the table serves I've looked at. No lines for concessions.

Yet wait times are ridiculous for such a light crowd level. What Disney has mastered is convincing people they need to pay to be in a line the moves faster than the one they are in without realizing they created the line they paid extra to avoid.

Nor am I seeing anyone walking around with Mickey pretzels and turkey legs. Why price a 25 cent pretzel at $8.25 and sell 200 a day when you could price it at $3 and sell 2000 a day?

Something has to give.

 

[Sirwalterraleigh]

Here now. Light crowds in Epcot. Resorts seem half empty. Same with all of the table serves I've looked at. No lines for concessions.

Yet wait times are ridiculous for such a light crowd level. What Disney has mastered is convincing people they need to pay to be in a line the moves faster than the one they are in without realizing they created the line they paid extra to avoid.

Nor am I seeing anyone walking around with Mickey pretzels and turkey legs. Why price a 25 cent pretzel at $8.25 and sell 200 a day when you could price it at $3 and sell 2000 a day?

Something has to give.

…where you finding a pretzel for only $8.25?