Disney's FY20 Q3 Earnings (8/4/20)

[Creathir]

What do you think would be a fair price? Also considering they can only sell one viewing per household vs one ticket per household member at the theater...

$15 seems more reasonable IMHO.
If this was being sold on iTunes, $30 seems appropriate. But it’s not. It’s 100% Disney profit. No middleman. And I pay to use the delivery mechanism, which uses MY bandwidth to do so.

$29 is absurd.

 

[doctornick]

The only thing that concerns me is that Disney+ has 57.5 million subscribers rather than 59 million as predicted by Wall Street.

Subscriber growth beginning to slow.

Outside of Hamilton, there's been nothing to really drive growth (beyond launching in new countries). Disney+ would really gain subscribers - especially in this stuck at home COVID world - if they had some exciting new programming on the service.

 

[MisterPenguin]

Q: Do you have enough production ready to ramp up? Where's my dividend!!!?

Bob: We like what we got and we gots the stuff!! New content helps D+, and deeper catalogue keeps 'em.

Christine: Management recommended for first half of fiscal year, no dividend. And we need that money for the biz. Now for the second half of the year, we still need to decide and if the biz still needs it. And if we put in the biz, the biz does better and your stock does better.

 

[Brer Oswald]

Parody

 

[MisterPenguin]

Q: on Star will you use the US hybrid? And what about sports that won't go on because of COVID?

Bob: Star is a temporary next step to D+'s world domination. And all will work on the same infrastructure.

No comment about college sports since that's out of our hands. But we're confident we'll reach goals.

 

[Sirwalterraleigh]

Yep...pass

Huge mcu fan but I’m not really into this.

Edit: I fell for it...but it’s still likely

 

[Slpy3270]

Nice bait, mate.

 

[JUFL2019]

Not a real twitter account, it’s a parody

 

[DCBaker]

 

[Rteetz]

Not a real twitter account, it’s a parody

Stupid verified account retweeted that. Stupid Twitter lol.

 

[Mac Tonight]

Paying to rent new releases on top of monthly subscription fees? Talk about that Disney Magic!

 

[Slpy3270]

That no one is asking about Media Networks indicates they're fine with how the division is going at the moment and that there are no plans to divest it anytime soon.

And why would they? All of Disney's TV production studios, including Disney TV Animation, are under them.

 

[Slpy3270]

View attachment 489012

Don't know if those are individual investors or activist hedge funds.

 

[MisterPenguin]

Q: the $23 billion that sits in loose cash, why?

Christine: Yes, it is conservative. We raised it with good rates and with no knowledge on how long we'll need it. So, we got it when we could as an insurance policy. We've been better at cost mitigation than originally thought.

We furloughed a lot of people and we're bringing them back, which will bump up labor costs.

And if things go well, we'll use it to pay current debt when it comes due.

 

[Beacon Joe]

View attachment 489012

Well, that's 180 degrees from what I expected yesterday, and a perfect example of why I'm not a stock picker!

 

[CaptainAmerica]

They lost 5 billion this quarter. One year of reserve cash at this rate.

Disney did not lose 5 billion this quarter.

 

[Slpy3270]

Q: the $23 billion that sits in loose cash, why?

Christine: Yes, it is conservative. We raised it with good rates and with no knowledge on how long we'll need it. So, we got it when we could as an insurance policy. We've been better at cost mitigation than originally thought.

We furloughed a lot of people and we're bringing them back, which will bump up labor costs.

And if things go well, we'll use it to pay current debt when it comes due.

Technically they're already doing that, since current debt is down from Q3 last year.

 

[Slpy3270]

Disney did not lose 5 billion this quarter.

I think he's referring to potential money.

 

[DisneyOutsider]

$15 seems more reasonable IMHO.
If this was being sold on iTunes, $30 seems appropriate. But it’s not. It’s 100% Disney profit. No middleman. And I pay to use the delivery mechanism, which uses MY bandwidth to do so.

$29 is absurd.

Considering that there is no theater viewing and this is an exclusive release, I think $15 would be a pretty significant bargain.

I don't think Disney cut out out the middle man with the intentions of passing on the savings to their dear customers

 

[bartholomr4]

I really need some education here. According to Marketwatch, "Walt Disney Co. reported a quarterly loss of nearly $5 billion Tuesday". "The loss was largely due to a $4.95 billion charge Disney took" "After adjusting for that charge and other factors, Disney reported net income of 8 cents a share, compared with $1.34 a share a year ago."

So Disney actually lost money for the quarter??? Sounds like accounting tricks making it seem better.

Then, you get the following statement: "Disney’s earnings were helped by an accounting maneuver in the TV business that boosted operating income beyond expectations. Disney said that it moved costs related to its ownership of rights to sports programming to future quarters because U.S. professional sports were not played in the quarter. That boosted operating income in the media-networks segment to more than $3 billion, 48% higher than last year and nearly double analysts’ average expectation."

So even more accounting scams???? I guess this is why they pay CFOs tons of money.

The $5 Billion dollar charge was for international operations (writing the value of the international channels down to their value). It would have happened with our without Covid-19. Also, if there are no baseball games on ESPN, then they don't have to pay MLB for the rights. But ESPN is still on and playing alot of re-runs which we are watching. Not sure there is some nefarious scam going on here.