Disney Fiscal 2017 and 4th quarter Earnings report

[rteetz]

Today Disney announced their 2017 and 4th Quarter fiscal earnings.

https://www.cnbc.com/2017/11/09/disney-earnings-q4-2017.html

http://www.reuters.com/article/us-w...street-as-cable-business-weighs-idUSKBN1D933B

Revenue from Disney’s cable business, which includes ESPN and Disney Channel, fell marginally to $3.95 billion in the fourth quarter, while analysts on average were expecting a rise to $4.06 billion, according to Thomson Reuters I/B/E/S.

ESPN, Disney’s cash-cow, has been trying to combat subscriber declines by joining smaller bundles of cable channels and developing a streaming service it will sell directly to consumers.

Disney’s movie business generated revenue of $1.4 billion in the quarter, down about 21 percent and missing analysts average estimate of $1.61 billion.

Disney’s total revenue fell to $12.78 billion in the quarter ended Sept. 30 from $13.14 billion a year earlier.


Net income attributable to the company declined to $1.75 billion from $1.77 billion. Excluding items, it earned $1.07 per share.

Analysts on average had expected a profit of $1.13 per share and revenue to rise to $13.23 billion.

Disney’s full-year adjusted profit was $5.70 per share. Chief Executive Bob Iger had warned in September that earnings would be roughly in line with the year-ago’ $5.72.

 

[rteetz]

Quote from Bob Iger

“No other entertainment company is better equipped to navigate the ever-evolving media landscape, thanks to our unparalleled collection of brands and franchises and our ability to leverage IP across our entire company. We look forward to launching our first direct-to-consumer streaming service in the new year, and we will continue to invest for the future and take the smart risks required to deliver shareholder value.”

 

[rteetz]

Freeform experienced a hit last quarter with lower viewership and ad revenue.

Parks revenue increased 6%

Disneyland Paris saw success with their 25th anniversary celebration.

Studio results hit with cancellation of Gigantic.

Disney invested $200 million more into domestic parks this year than last.

ESPN Streaming will be called ESPN Plus.

ESPN will reportedly lay off 100 people.

Disney's Streaming service will include a Star Wars live-action series, a Marvel series, a High School Musical series, and a Pixar Monsters Inc. spinoff series.

Rian Johnson will create a 4th Star Wars Trilogy.

 

[rteetz]

 

[rteetz]

Disney is increasing their parks spending by $1 billion (about 50%).

Iger said they have no need to add to their film slate (regards to Fox rumors).

Star Wars 4th trilogy will be separate from the Skywalker story.

 

[TheMaxRebo]

Quote from Bob Iger

“No other entertainment company is better equipped to navigate the ever-evolving media landscape, thanks to our unparalleled collection of brands and franchises and our ability to leverage IP across our entire company. We look forward to launching our first direct-to-consumer streaming service in the new year, and we will continue to invest for the future and take the smart risks required to deliver shareholder value.”

translated:

♪ ♫ ♫ ♪ ♪
I love IPs
You love IPs
I love IPs
Who could ask for anything more?!?!?!
♪ ♫ ♫ ♪ ♪

 

[rteetz]

translated:

♪ ♫ ♫ ♪ ♪
I love IPs
You love IPs
I love IPs
Who could ask for anything more?!?!?!
♪ ♫ ♫ ♪ ♪

But Bob apparently doesn't believe they need more IPs at the moment.

 

[rteetz]

Most of the $1 billion additional spent on the domestic parks will be on Star Wars: Galaxy's Edge.

 

[rteetz]

Iger points out there are several opportunities for expansion at their international parks.

 

[rteetz]

The Disney Streaming service will include other brands than Disney.

It will not have R rated content.

 

[rteetz]

Disney CFO said Cars 3 underperformed in their eyes.

Disney is going to make a big deal out of Mickey's 90th birthday.

The Disney Streaming service will coast substantially less than Netflix.

 

[rteetz]

Disney Parks and Resorts revenues for the 4th quarter increased 6% to $4.7 Billion, segment operating income increased from 7% to $746 million. Operating income growth was due to an increase at the international operations partially offset by domestic parks due to Hurricane Irma. International operations grew due to Shanghai and Paris. Paris had increased in attendance, guest spending, and occupied room nights. Shanghai growth was from from attendance growth and lower marketing costs. Domestic operation losses from WDW were partially offset by DLR, DCL, and DVC sales. Low results at WDW were caused by higher costs, and fewer occupied rooms with the major impact being Irma. Growth at DLR was due to increase in guest spending, and attendance.

 

[rteetz]

Disney stock is up in after hours trading. Netflix is down.

 

[Lee Matthews]

Disney CFO said Cars 3 underperformed in their eyes.

Disney is going to make a big deal out of Mickey's 90th birthday.

The Disney Streaming service will coast substantially less than Netflix.

Substantially less than Netflix is interesting. A Star Wars live action tv series exclusive to the service has sold it to me already

 

[Capang]

Disney CFO said Cars 3 underperformed in their eyes.

Disney is going to make a big deal out of Mickey's 90th birthday.

The Disney Streaming service will coast substantially less than Netflix.

What was it with Cars 3? Everyone that I know that saw it loved it. Was it too far removed from the first two or did people sour on it after Cars 2?

What kind of big deal for Mickey? Movies? Cartoons? Parks? Any ideas?

Netflix isn’t all that much. How low will this cost and will the tech be better than, say, their apps? Because their apps leave a lot to be desired.

 

[rteetz]

What was it with Cars 3? Everyone that I know that saw it loved it. Was it too far removed from the first two or did people sour on it after Cars 2?

What kind of big deal for Mickey? Movies? Cartoons? Parks? Any ideas?

Netflix isn’t all that much. How low will this cost and will the tech be better than, say, their apps? Because their apps leave a lot to be desired.

Cars 3 was better connected to the first one I felt. I liked 3 a lot better than 2. I think people were bitter after 2 they didn't bother with 3.

All the above? I'd expect maybe a TV special, celebration in the parks, stuff on Disney channel.

 

[OnSpaceshipEarth]

Nice to see improvement at DLP...that's been a money hole since it opened.

 

[Q-man]

Freeform experienced a hit last quarter with lower viewership and ad revenue.

Parks revenue increased 6%

Disneyland Paris saw success with their 25th anniversary celebration.

Studio results hit with cancellation of Gigantic.

Disney invested $200 million more into domestic parks this year than last.

ESPN Streaming will be called ESPN Plus.

ESPN will reportedly lay off 100 people.

Disney's Streaming service will include a Star Wars live-action series, a Marvel series, a High School Musical series, and a Pixar Monsters Inc. spinoff series.

Rian Johnson will create a 4th Star Wars Trilogy.

That's impossible. I've read on this very board that the .5% drop in attendance at WDW is the harbinger of doom for Disney parks. /sarcasm

 

[jlundeen]

So will the Mickey Mouse celebration be 2018? since Steamboat Willie debuted in November of 1928, that would be my guess. That's not that far away if they want to do something big. I wonder why we haven't heard anything about it yet.

 

[rteetz]

So will the Mickey Mouse celebration be 2018? since Steamboat Willie debuted in November of 1928, that would be my guess. That's not that far away if they want to do something big. I wonder why we haven't heard anything about it yet.

Correct.