DIS Shareholders and Stock Info ONLY

[TsWade2]

Yes, Disney does need to adjust strategy. Streaming cannot be a never-ending financial albatross. They need a sense towards profitability. Also, Dividend needs to come back, debt needs to come down, and the parks can’t be a financial bailout for every other area of the business declining YOY. This stock performance is not acceptable, because their financial results aren’t successful. Additionally, Disney+ overall has been, as a consumer, disappointing. If you don’t have young kids, you’re only going to rewatch the Lion King so many times. The original content has varied from the extra-inspired to the mundane. And, they have a big Hulu acquisition coming up in a couple years. I almost wish they would expand their legacy offerings on Disney+ (more touchstone films, etc.) rather than spend that money on original content. It is also unclear what is family friendly in Disney’s mind, and what isn’t. (Hulu vs. Disney+)

I couldn’t agree more. If Bob Chapek is so smart, he needs to change strategies like bring in more old shows on DisneyPlus like House of Mouse, Weekenders, and etc. And maybe end the reservation systems. But like I said, I’m not a business person, so what do I know? But again, Disney needs to act fast and do better next year.

 

[RamblingMad]

I couldn’t agree more. If Bob Chapek is so smart, he needs to change strategies like bring in more old shows on DisneyPlus like House of Mouse, Weekenders, and etc. And maybe end the reservation systems. But like I said, I’m not a business person, so what do I know? But again, Disney needs to act fast and do better next year.

This is in spite of people complaining about them raising prices way too fast. My expectation is that they have vacancies because the parks have gotten prohibitively expensive. They're going to be forced to discount and bring down their estimates for next year. This should hurt the stock even more.

 

[TsWade2]

This is in spite of people complaining about them raising prices way too fast. My expectation is that they have vacancies because the parks have gotten prohibitively expensive. They're going to be forced to discount and bring down their estimates for next year. This should hurt the stock even more.

Oh. never mind what I said that. I just hope Disney survives.

 

[Cfabar1]

Disney will survive. It is one of the most storied, legendary companies in the world. Additionally, it continues to have potential to deliver results. Even Jim Cramer and others on CNBC recognize that this is a company with serious value, and a change of leadership has the potential to easily unlock it even more.

 

[Carol_]

I finally bought in this week again at just under $100

 

[RivShore]

Sid Bass lost his DIS stake because of a margin call ("Margin call, gentlemen!!... Turn those machines back on!!"). Once that happened, Eisner's fate was sealed. I agree that for the first 10 years, he and Frank Wells worked miracles.

https://www.nytimes.com/2001/09/21/...ed-of-money-forced-to-sell-6.4-of-disney.html
Bass Family, in Need of Money, Forced to Sell 6.4% of Disney
By Gretchen Morgenson and Riva D. Atlas
Sept. 21, 2001

Hey @wobbott, I may have missed it in your study stream of news but did you post the text of this Barron's article? I can't see the whole thing, do you have access to it?

Disney Has a Disney World Problem, Too​

https://www.barrons.com/articles/disney-earnings-stock-parks-51668007816?siteid=yhoof2

 

[wabbott]

Hey @wobbott, I may have missed it in your study stream of news but did you post the text of this Barron's article? I can't see the whole thing, do you have access to it?

Disney Has a Disney World Problem, Too​

https://www.barrons.com/articles/disney-earnings-stock-parks-51668007816?siteid=yhoof2

Didn't post it, and its behind a paywall for me. I would like to see what their take is.

 

[Obi-J Kenobi]

Disney will survive. It is one of the most storied, legendary companies in the world. Additionally, it continues to have potential to deliver results. Even Jim Cramer and others on CNBC recognize that this is a company with serious value, and a change of leadership has the potential to easily unlock it even more.

I happened to catch the video of Jim Cramer crying on air and getting choked up about Meta's collapse. He apologized to viewers because he kept pushing Meta for months as the stock price kept dropping. At least his apology is the smallest form of justice for those who listened to him and bought Meta stock.

 

[BostonEd]

Disney will survive. It is one of the most storied, legendary companies in the world. Additionally, it continues to have potential to deliver results.

https://twitter.com/x/status/1588115310124539904

Check out this thread on Twitter. It has to do with Elon Musk, but could easily be applied to TWDC.

 

[wabbott]

https://twitter.com/x/status/1588115310124539904

Check out this thread on Twitter. It has to do with Elon Musk, but could easily be applied to TWDC.

Bottom line, without customers, you do not have a business. So you better pay attention to them.

John Bull

@garius


So what's the lesson for businesses here? - Watch for grumbling and LISTEN to it. - Don't assume that because people have swallowed a price or service change that'll swallow another one. - Treat user trust as a finite asset. Because it is.


5:26 AM · Nov 3, 2022·Typefully

 

[wabbott]

I did this calc for last quarter's earnings, and this is for the latest quarter and year

THE WALT DISNEY COMPANY REPORTS FOURTH QUARTER and FULL YEAR EARNINGS FOR FISCAL 2022
https://thewaltdisneycompany.com/app/uploads/2022/11/q4-fy22-earnings.pdf


Disney Media and Entertainment Distribution Division
For quarter ended 9/30/22: Revenues: $12.725 billion - Operating profit: $.083 billion (0.67% return)
For year ended 9/30/22: Revenues: $55.040 billion - Operating profit: $4.216 billion (7.66% return)


Parks, Experiences and Products Division
For quarter ended 9/30/22: Revenues: $7.425 billion - Operating profit: $1.514 billion (20.39% return
For year ended 9/30/22: Revenues: $28.705 billion - Operating profit: $7.905 billion (27.54% return)

 

[CruellaDuVille]

I happened to catch the video of Jim Cramer crying on air and getting choked up about Meta's collapse. He apologized to viewers because he kept pushing Meta for months as the stock price kept dropping. At least his apology is the smallest form of justice for those who listened to him and bought Meta stock.

Well, even Jim Cramer called Bob Chapek "Bob Paycheck" today. It's no longer an inside joke. I've lost a crapload of money on DIS waiting for it to recover, with no dividends while I wait. The execs get huge raises. I feel stupid and used and for the first time in 30 years I'm really angry about what's happened to DIS. Where's the board? No one is happy. Chapek has managed to alianate Disney's most loyal fans and guests. Time for him to go.

 

[buzlite]

Chapek is using Disney like a 90s boy bad. He’s missing the fact that public perception isn’t a gradual thing. It’s explosive. Once it falls it will be crashing. This with high interest rates and a coming recession will really hit Disney hard. 2021 and 2023 will be very different. I’m sure Disney will survive but I predict hard times.
Companies are acting as if people just somehow grew okay spending more on luxury experiences. Not realizing the effect of cheap money, soaring crypto prices and stock market rallies. Once this wealth is washed away or at least pulled down, people will tighten their pockets. Just look at Teslas orders.

 

[Cfabar1]

I would still rather be Disney than any other entertainment company right now… The rest are even bigger messes. That will help Disney…

That said, Chapek is in big trouble….

 

[wabbott]

All y'all were supposed to tell me to buy on that dip the other day!!!

https://finance.yahoo.com/quote/DIS?p=DIS

94.92+4.46 (+4.93%)
As of 12:32PM EST. Market open.

 

[RivShore]

All y'all were supposed to tell me to buy on that dip the other day!!!

https://finance.yahoo.com/quote/DIS?p=DIS

94.92+4.46 (+4.93%)
As of 12:32PM EST. Market open.

Don't look at me, I added a few shares at 99 thinking a decent to very good earnings report was coming...

 

[wabbott]

Maybe this is it.

https://comicbook.com/marvel/news/b...orever-box-office-hits-58-8-million-globally/

Black Panther: Wakanda Forever Box Office Hits $58.8 Million Globally

By Jamie Jirak - November 11, 2022 01:37 pm EST

 

[RivShore]

This is getting ugly...

Disney plans targeted hiring freeze and job cuts, according to a memo from CEO Bob Chapek

https://www.cnbc.com/2022/11/11/disney-plans-hiring-freeze-job-cuts-memo-says.html

 

[Cfabar1]

That letter looks terrible….However, I support bringing structure towards profitability, etc. The last quarter was a disaster.

I’d also point out, the parks appear to be pretty fully staffed at this point. Even the ticket booths are starting to open again. A few shops and restaurants remain closed, but they seem to be mostly back in business.

I just hope Chapek realizes he won’t be able to cut his way into prosperity entirely. And the letter reads of desperation to me - as an outsider - particularly the section about work related travel and conference attendance. It sounds very serious, but I am skeptical it will meaningfully contribute to a reduction in the bottom line.

And cuts need to happen where customers won’t notice them - Disney is a premium company, and that requires premium touches and premium customer service. Not long wait times, friendly agents etc.

I am glad that he is emphasizing (and placing his name) on getting Disney+ to profitability in 2024. That and reducing debt levels seem to be task numbers 1 and 2.

 

[wabbott]

Here's the LA Times' take.

https://www.latimes.com/entertainme...ng-freeze-cost-cuts-to-make-disney-profitable

Disney’s Bob Chapek orders hiring freeze, cost cuts to make Disney+ profitable

By Ryan Faughnder - Staff Writer
Nov. 11, 2022 Updated 3:53 PM PT

Bob Chapek wants Disney+ to be profitable by fiscal 2024, but meeting that goal is going to cause some pain at Walt Disney Co.

The Disney chief executive on Friday confirmed what he’d signaled in his fourth-quarter earnings call earlier this week: Cost cuts are coming to the Mouse House, in the latest example of a broader retrenchment in Hollywood as the industry tries to figure out how to make money from streaming.

In a memo to Disney executives reviewed by The Times, Chapek said he has established a “cost structure taskforce,” composed of Chief Financial Officer Christine McCarthy and general counsel Horacio Gutierrez. The company, Chapek said, has started a “rigorous review” of its spending on content and marketing, is instituting a hiring freeze and anticipates layoffs. The Burbank-based entertainment giant is also looking to limit travel to essential business trips only, with attendance at conferences needing approval from management.

“We will look at every avenue of operations and labor to find savings, and we do anticipate some staff reductions as part of this review,” Chapek said in the email. “I am fully aware this will be a difficult process for many of you and your teams. We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time.”

Chapek did not indicate how many jobs would be eliminated or when the cuts would occur. A Disney representative did not immediately respond to a request for comment.
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“These efforts will help us to both achieve the important goal of reaching profitability for Disney+ in fiscal 2024 and make us a more efficient and nimble company overall,” Chapek said in the memo about cost-cutting. “This work is occurring against a backdrop of economic uncertainty that all companies and our industry are contending with.”

This comes after Disney reported results for its fourth fiscal quarter, in which Disney+ added 12.1 million subscribers. That was more than analysts expected.

However, the gains have come at a steep cost. The firm’s streaming operations — which also include Hulu and ESPN+ — lost nearly $1.5 billion during the quarter and more than $4 billion during the full year, Disney said Tuesday.

The company also reported earnings and revenue that fell short of analysts’ expectations, sending the stock tumbling the next day. Disney executives said the fourth quarter marked the “peak” of streaming losses. But executives also forecast profit growth that was slower than analysts had predicted.

“The company has to prove that their pivot to [direct-to-consumer] will be worth the price that is currently being paid,” media analyst Michael Nathanson wrote in a note to clients this week.

Disney+ now has more than 164 million subscribers. Including Hulu and ESPN+, Disney’s streaming operation has surpassed 235 million subscribers. Rival Netflix has 223 million subscribers, while Warner Bros. Discovery has a combined 95 million between HBO Max and Discovery+, which are expected to be consolidated.

Disney is far from alone in its pursuit of cost-saving. Netflix, which operates the world’s largest streaming service, has cut hundreds of jobs and sought to slow the growth of its spending on movies and TV shows while also adding a cheaper tier supported by advertising. Warner Bros. Discovery’s David Zaslav is seeking $3.5 billion in savings from the April merger of Discovery and entertainment assets formerly held by AT&T, resulting in heavy cuts at HBO, Warner Bros. Television, Turner networks and CNN.

Traditional entertainment companies are facing increasing pressure from Wall Street to show a path to profitability for their streaming efforts. In the early ramp-up of the streaming wars, investors rewarded companies for subscriber growth, almost regardless of costs. Not anymore.

Chapek on Tuesday said he still expected Disney+ to become profitable by the end of fiscal 2024, barring a major economic downturn.

He framed the substantial losses as a necessary price for keeping Disney relevant for the long term as consumers turn away from traditional television. To make that pivot, Disney and others have also sacrificed traditional businesses that have been profitable but are either declining fast or stagnating. TV viewership is falling, cord cutting is accelerating and it’s unclear whether the box office will return in full for anything other than the biggest blockbusters.

Disney is taking additional measures to make its streaming segment profitable, raising prices for its ad-free Disney+ service while adding commercials for people who want to keep paying the current rate. Ad-free Disney+ is going up to $11 a month, a $3 increase. Ad-based Disney+ will cost $8 a month when it launches Dec. 8.

The downbeat news for Disney employees comes at the same time as its blockbuster “Black Panther: Wakanda Forever” hits theaters. The sequel is expected to open with $170 million to $200 million in ticket sales from the U.S. and Canada, making it one of the biggest movies of the year.

Here’s the full memo from Chapek:

Disney Leaders-
As we begin fiscal 2023, I want to communicate with you directly about the cost management efforts Christine McCarthy and I referenced on this week’s earnings call. These efforts will help us to both achieve the important goal of reaching profitability for Disney+ in fiscal 2024 and make us a more efficient and nimble company overall. This work is occurring against a backdrop of economic uncertainty that all companies and our industry are contending with.


While certain macroeconomic factors are out of our control, meeting these goals requires all of us to continue doing our part to manage the things we can control—most notably, our costs. You all will have critical roles to play in this effort, and as senior leaders, I know you will get it done.
To be clear, I am confident in our ability to reach the targets we have set, and in this management team to get us there.
To help guide us on this journey, I have established a cost structure taskforce of executive officers: our CFO, Christine McCarthy and General Counsel, Horacio Gutierrez. Along with me, this team will make the critical big picture decisions necessary to achieve our objectives.


We are not starting this work from scratch and have already set several next steps—which I wanted you to hear about directly from me.
First, we have undertaken a rigorous review of the company’s content and marketing spending working with our content leaders and their teams. While we will not sacrifice quality or the strength of our unrivaled synergy machine, we must ensure our investments are both efficient and come with tangible benefits to both audiences and the company.
Second, we are limiting headcount additions through a targeted hiring freeze. Hiring for the small subset of the most critical, business-driving positions will continue, but all other roles are on hold. Your segment leaders and HR teams have more specific details on how this will apply to your teams.


Third, we are reviewing our SG&A costs and have determined that there is room for improved efficiency—as well as an opportunity to transform the organization to be more nimble. The taskforce will drive this work in partnership with segment teams to achieve both savings and organizational enhancements. As we work through this evaluation process, we will look at every avenue of operations and labor to find savings, and we do anticipate some staff reductions as part of this review. In the immediate term, business travel should now be limited to essential trips only. In-person work sessions or offsites requiring travel will need advance approval and review from a member of your executive team (i.e., direct report of the segment chairman or corporate executive officer). As much as possible, these meetings should be conducted virtually. Attendance at conferences and other external events will also be restricted and require approvals from a member of your executive team.
Our transformation is designed to ensure we thrive not just today, but well into the future—and you will hear more from our taskforce in the weeks and months ahead.
I am fully aware this will be a difficult process for many of you and your teams. We are going to have to make tough and uncomfortable decisions. But that is just what leadership requires, and I thank you in advance for stepping up during this important time. Our company has weathered many challenges during our 100-year history, and I have no doubt we will achieve our goals and create a more nimble company better suited to the environment of tomorrow.


Thank you again for your leadership.
-Bob