Disney’s Q3 FY24 Earnings Results Webcast

[CaptainAmerica]

I wonder how much the person who gets to run things through the Corporate Buzzword-a-nator to produce things like “demand moderation” gets paid.

I'm sorry this is such a stupid complaint.

"Demand moderation" is a perfectly meaningful and coherent term. It's not corporate gobbledygook.

 

[Disstevefan1]

Just heard "per capita spending is slightly up in the domestic parks"

 

[Lilofan]

Q&A only, no announcements

New format this time, only Q&A on the call, no opening comments.

This is way strange. And Wall Street approved this ?

 

[Tha Realest]

"At our Experiences segment, we expect that the demand moderation we saw in our domestic businesses in Q3 could impact the next few quarters."

Lol, demand moderation. Hilariously silly phrase. So can we now all agree that Disney itself is admitting that attendance is down and it's not just anecdotal data?

What do the laws of supply and demand suggest they do here? And how does their operating income (prices) factor in?

Increasing supply will cause the equilibrium price to fall. The current equilibrium price, while not optimal from a demand standpoint, is what’s been holding the line revenue wise.

Factor in that “higher guest spending” is likely due to their revenue streams that take advantage of their low capacity offerings, there is a disincentive to increase supply at the parks (parks parks, not DCL parks).

 

[MisterPenguin]

Q: what's up with parks and cruise ships? And sports?

A: Parks' revenue was up 3%. Things are flat, but still profitable.

Sports are OK.

 

[MisterPenguin]

This is way strange. And Wall Street approved this ?

Yes. It is the decree of Mr. Wall Street.

 

[doctornick]

But it was called very soft last year, which means it was even softer this year. Keep in mind they are also comparing to last year when they were accelerating the deprecation of the Star Cruiser, so that could be another $100-$300 million (not sure how all that works, way above my knowledge).

Absolutely. I'm actually just a bit surprised at how much the increased charging for things is actually keeping profits fairly decent despite lower occupancy of resorts and lower attendance in the parks. I mean, trends and projections are far from ideal so potentially choppy waters ahead - but having over $2B profit for a quarter in a segment at least allows for a good bit of wiggle room for the impending drops for the segment.

I know Wall St isn't happen when companies make "only" a certain amount of money but being profitable seems more important for the long term health than posting a loss in a given quarter.

 

[MisterPenguin]

Bob: Our product price increases have not produced significant churn, and thus created increased revenue. We're also increasing the attractiveness of the products in content and features.

 

[lentesta]

Third time in two calls Iger has mentioned "recommendation engines" for D+.

 

[wdwmagic]

Third time in two calls Iger has mentioned "recommendation engines" for D+.

It is the new "turbocharging"

 

[Tha Realest]

Third time in two calls Iger has mentioned "recommendation engines" for D+.

Coupling the synergy machine with the recommendation engines is like when the Keymaster meets the Gatekeeper.

You summon Gozer.

 

[MisterPenguin]

Q: where do you spend your money investment; what's up with free cash?

Bob: <generic answer to this generic question>

CFO: still on to having $8B

 

[CaptainAmerica]

Third time in two calls Iger has mentioned "recommendation engines" for D+.

They badly need it.

When Disney+ launched ad-free, they didn't care if anyone actually WATCHED because they got the subscription fee either way. Now that they're ad-supported, they need people to actually consume advertising. Netflix' secret sauce is knowing what you'll like next and sticking that content right in front of your face as soon as you finish something.

 

[MisterPenguin]

Q: how to get DTC up to double digit margins; parks... what's up with pre-sailing costs?

CFO: bundling's been helping, ending password sharing; new pricing

Cruise ships: start-up cost is doubling, but there is positive return

 

[doctornick]

Third time in two calls Iger has mentioned "recommendation engines" for D+.

I will say that Disney does lag behind Netflix for this. That is one thing Netflix does very well is making suggestions for something you may not other have heard of or know about that they carry. Which makes the service feel more robust. I feel like with D+, you just keep seeing recommendations for the same things that are mostly well known and not more obscure content on the service.

Also, I really think D+ needs to have some sort of ratings system for things you have watched (to give more accurate recommendations). A "I liked this and want to see more of the same" vs "I didn't like this and don't care to see things related" vs "this was terrible, please remove any reference to it from my profile". So they can know what you like and don't like based on feedback not just what you decided to click on.

 

[MisterPenguin]

Q: what's up with 'strategic partners'; managing costs

Bob: JV is great and ongoing.

Cost cutting is still being looked at.

 

[HauntedPirate]

So "no significant churn" in D+ means only 200k additional subscribers, mostly overseas? And content is "more attractive"?

 

[Ayla]

On a 6 hour drive across France today, so an earnings call will kill some time nicely.

Just driving past Cognac. Anyone want some?

I'll meet you in Colmar next week.

 

[MisterPenguin]

Parks: what about the softening? Will attendance continue to go down. What's up with per cap.;

CFO: we see current trends continuing.

 

[ABQ]

Can someone explain how the Olympics and all the tourism it supposedly brings to a city, ie Paris, causes a negative attendance situation at the Paris theme park?