DIS Shareholders and Stock Info ONLY

[Jrb1979]

The question had nothing to do with streaming

Wow so snappy.

 

[wabbott]

So when exactly did they need to figure out how to be profitable, while maintaining profitability? Profitability that they’ve maintained in those sectors for a long while now even with a declining revenue stream.

Two years ago.

 

[HokieRaven5]

Two years ago.

So the decade plus of profitability from the media networks prior to 2 years ago is irrelevant and only the last 2 years matter?

 

[Jrb1979]

So the decade plus of profitability from the media networks prior to 2 years ago is irrelevant and only the last 2 years matter?

With linear networks heading that way it does. Cable is dying a slow death

 

[HokieRaven5]

With linear networks heading that way it does. Cable is dying a slow death

It is, and they’ve adapted to maintain 30% profit margins for those networks during its death.

They are losing revenue but they’ve never lost profitability

this reporting quarter the networks operated at 44% margin

 

[wabbott]

It is, and they’ve adapted to maintain 30% profit margins for those networks during its death.

They are losing revenue but they’ve never lost profitability

this reporting quarter the networks operated at 44% margin

Well, whenever they do become unprofitable, it's just a matter of squeezing more money from parks guests.

 

[clarker99]

Well, whenever they do become unprofitable, it's just a matter of squeezing more money from parks guests.

Just keep moving those goal posts.

 

[clarker99]

Once again for the people in the back who ignore the numbers:

In the last 4 quarters Disney has made over $13.7B in PROFIT. They are not poor or in trouble or whatever such that you hear from whatever news source. This is the best 4 quarter total since Q2FY20.

The best 4 Quarters in a row Disney ever had was just over $16B back in Q2FY16. They basically held around $15B right up till the pandemic.

They are back to pre-Covid totals with revenue significantly higher.

 

[Jrb1979]

Once again for the people in the back who ignore the numbers:

In the last 4 quarters Disney has made over $13.7B in PROFIT. They are not poor or in trouble or whatever such that you hear from whatever news source. This is the best 4 quarter total since Q2FY20.

The best 4 Quarters in a row Disney ever had was just over $16B back in Q2FY16. They basically held around $15B right up till the pandemic.

They are back to pre-Covid totals with revenue significantly higher.

That's great for shareholders.

As someone who really only cares about the parks in terms of Disney, seeing them not invest in the parks as much as they should. I'm talking a new attraction at minimum every 2 years. These numbers don't excite me. Yay record profits, but where is the reinvestment into the parks. Forgot they can't, they need it pay for Hulu and stock buybacks.

 

[clarker99]

That's great for shareholders.

As someone who really only cares about the parks in terms of Disney, seeing them not invest in the parks as much as they should. I'm talking a new attraction at minimum every 2 years. These numbers don't excite me. Yay record profits, but where is the reinvestment into the parks. Forgot they can't, they need it pay for Hulu and stock buybacks.

**checks the name of the thread**
Yup, I am in the right place.

 

[Jrb1979]

**checks the name of the thread**
Yup, I am in the right place.

As a shareholder you are cool with buybacks they are doing?

 

[bryaalre]

As a shareholder you are cool with buybacks they are doing?

yes

 

[clarker99]

As a shareholder you are cool with buybacks they are doing?

yes

Ha. Higher stock price (potentially) or theme park investment are not mutually exclusive things. It is isn’t one or the other and Disney hasn’t positioned it this way either.

Next…

 

[RivShore]

As a shareholder you are cool with buybacks they are doing?

From a short term stock price perspective, i like them, I really like them!

But I have real questions for Bob and company - with $40B of debt on the books, why is a buyback better than paying down debt? There may be good reasons for it, like very favorable interest rates on that debt, but I did not see it addressed on the call or the earnings release.

Also why is it better than using it to accelerate capital investment? They already raised the dividend, so why not take that $3B and invest in the business to drive more profits quicker?

I've always thought buybacks should only come into play when debt is low and capx investments would not generate target profits. This appears to go against that on both counts.

 

[Jrb1979]

https://twitter.com/x/status/1755678108978446663

 

[clarker99]

https://twitter.com/x/status/1755678108978446663

Somebody shorted the wrong stock, check out my medium for more!

 

[greeneyedchick]

Yes, but they are separate services.

unless you're getting them both for free with your verizon cell phone

 

[Disney Bobby]

unless you're getting them both for free with your verizon cell phone

Free is a funny word.

 

[bryaalre]

From a short term stock price perspective, i like them, I really like them!

But I have real questions for Bob and company - with $40B of debt on the books, why is a buyback better than paying down debt? There may be good reasons for it, like very favorable interest rates on that debt, but I did not see it addressed on the call or the earnings release.

Also why is it better than using it to accelerate capital investment? They already raised the dividend, so why not take that $3B and invest in the business to drive more profits quicker?

I've always thought buybacks should only come into play when debt is low and capx investments would not generate target profits. This appears to go against that on both counts.

I like the buyback as it signifies they feel the stock is low and the ROI on the buyback is more favorable for shareholders than paying down debt among other things.

It is not a big buyback but I think diversifying where their free cash goes is a good thing. They have announced more investments in the park (we all would like the investments to happen sooner but at least they have stated something), they will pay off some debt with the free cash, return some in dividends and now some in a buyback. So long as they strike a good balance, the buyback should be seen as good (or a split between good and desperate hoping wall street likes the move).

 

[clarker99]

unless you're getting them both for free with your verizon cell phone

Nope. Dis+ and Hulu are separate services.