Disney’s Quarter 3 Earnings Call

rteetz

DIS Veteran
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Feb 20, 2013
https://www.laughingplace.com/w/art...log-the-walt-disney-company-q3-2018-earnings/

In the earnings, Bob Iger notes, "We’re pleased with our results in the quarter, including a double-digit increase in earnings per share, and excited about the opportunities ahead for continued growth. Having earned the overwhelming support of shareholders, we are more enthusiastic about the 21st Century Fox acquisition than ever, and confident in our ability to fully leverage these assets along with our own incredible brands, franchises and businesses to drive significant value across the entire company."

BAMTech saw an operating loss, partially due to the costs of launching ESPN+ in April

Parks and Resorts revenues for the quarter increased 6% to $5.2 billion and segment operating income increased 15% to $1.3 billion.

Higher operating income at Parks and Resorts was up thanks to increased guest spending, including increases in average ticket prices, food, beverage and merchandise spending and average daily hotel room rates. However labor and other cost inflations partially offset this income.

Studio revenue was up 20% to $2.9 billion, due in part to the success of Infinity War and Incredibles 2 (compared to Guardians of the Galaxy Vol. 2 and Cars 3 last year). Additionally, the continued popularity of Black Panther into Q3 boosted revenue while Solo... was also released.

Consumer Products & Interactive Media revenues decreased 8% to $1.0 billion. They note lower licensing revenues from Spider-Man and Cars products were partially offset by an increase in Avengers products.

Iger says that, in addition to IP, the company is gaining talent with the Fox deal

Iger also mentions Fox Searchlight, saying he wants to give the studio what it needs to do what it does best.

Last year's Q3 Park results included two weeks of the Easter holiday while this year included only one. They estimated this amounted to a $47 million or 4% YOY difference

Q3 results at Disneyand Paris were comparable to the prior year

Infinity War has grossed more than $2 billion globally, making it Marvel's highest grossing film yet. Similarly, Incredibles 2 has brought in more than $1 billion worldwide
 
In regards to the streaming service, Iger says they're going to "walk before we can run" when it comes to content output and they don't have plans to compete with volume of content Netflix has. He adds that the price of the service will reflect that.
 


In regards to the streaming service, Iger says they're going to "walk before we can run" when it comes to content output and they don't have plans to compete with volume of content Netflix has. He adds that the price of the service will reflect that.

I really hope they never follow Netflix's model of make as much of whatever as we can and hope some is good. Quality over quantity Bob.
 


I am very curious about the streaming service. I said I wouldn't do it since I already have Amazon Prime and Netflix. But if its only a couple of bucks a month at first...I'd try it.
 
Naturally, Iger notes the revenue yield oppurtunities from Toy Story Land and the Star Wars: Galaxy's Edge expansions
 
Iger says ESPN+ subscriber rates are exceeding expectations but won't release any details on the numbers.

Iger says ESPN+ will continue to look for rights opportunities and may move some contracts from ESPN to ESPN+ in the future

Iger notes that, starting with the 2019 slate, Disney is unencumbered by previous deals. He also declines to offer details on when rights to 2018 and earlier films will revert to Disney
 
Iger hints that films like the Force Awakens won't immediately be available on the service but of course the Star Wars series will be

Iger says the process of selling the regional sports networks (as required by the Justice Department) has begun

Disney would need to consent for Fox to increase its bid for Sky, but Iger says he cannot comment any further. Fox did submit a formal offer for Sky at ‎£14 a share, but Comcast has previously announced £14.75 a share offer.
 
This is only tangentially related, but DH tried the ESPN+ service. He thought the content was really great but the functionality of the app was terrible and incredibly frustrating. He gave it a good two months, but he threw in the towel and canceled until they can get their stuff together. As a shareholder, my biggest concern is Disney’s IT capabilities. It’s great to have a brand and all this content, but if the usability and functionality of the app is crap, it’s detrimental to the brand...
 
Antman and Wasp will be last Marvel film on Netflix. Captain Marvel will be on Disney streaming servive

When the Disney streaming service launches in 2019, will the Disney/Marvel movies that are currently on Netflix stay or will they be taken off?
 

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