Disney releases 4th quarter earnings report

[rteetz]

https://ditm-twdc-us.storage.googleapis.com/q4-fy16-earnings.pdf

 

[rteetz]

http://www.laughingplace.com/w/featured/2016/11/10/disney-fiscal-2016-earnings-live-blog/

 

[rteetz]

Disney missed earnings estimates.

$13.14 billion, estimates were $13.52 billion

Sixth consecutive year of record earnings.

Media networks decreased 3% in last quarter due to declining subscription base.

Attendance down at DLP, HKDL, WDW, DL. Guest spending was up at WDW and they reduced costs (no surprise).

DL attendance was down due to end of diamond celebration and was offset by higher prices.

Consumer products and interactive media down 5%.

Disney spent $2.2 billion on parks domestically in 2016 up from $1.5 in 2015.

 

[rteetz]

Earnings call has begun.

Bob Iger opens with Star Wars The Force Awakens and Shanghai as highlights of 2016.

Disney released 4 films that made over $1 billion in worldwide box office.

 

[rteetz]

Disney had 4 million guests at Shanghai Disneyland in their first 4 months. Will not provide full year expectations.

 

[rteetz]

Disney has closedbdeals with Hulu and AT&T to provide ESPN to over the top consumers.

Disney will use BAMTech to launch a new ESPN service in 2017.

 

[rteetz]

Disney expects to return to a more robust growth in 2018.

ESPN says a big decrease in daily fantasy advertising like draftkings or fanduel are under pressure. Some ad dollars were diverted to the Olympics instead of ESPN this year.

 

[mikepizzo]

Thank you for breaking out key points.

 

[rteetz]

Disney says Hurricane Matthew cost Walt Disney World $40 million

Disney expects cable costs to go up in 2017 due to in-part the new NBA deal

Disney expects Shanghai Disneyland to be close to break even in 2017.

Disney warns that the Studio's performance in 2017 will face tough commparrison due to the performance of The Force Awakens in Fiscal 2016.

 

[rteetz]

50% of Shanghai Disney attendence is from outside the Shanghai area.

Bob Iger believes the new bundles such as Hulu, DirecTV Now, will bring more "millenials" into the multi-channel ecosystem due to their good user experience.

 

[rteetz]

Disney had 11 franchises that generated at least $1 billion in retail sales.

Iger thinks it will be smart to build more hotels at both Disneyland and Walt Disney World.

 

[rteetz]

On finding Bob's sucessor, he says that they the board discusses it at every meeting and they believe they will find the right person in a timely basis.

Disney is working on redoing DisneyStore.com using better technology.

 

[rteetz]

Disney says the ongoing investment in BAMTech related services is very modest as Disney has already bought the rights to use on the service.

Bob Iger says that a sculpture of President Trump has already been crafted to be added to The Hall of Presidents

Bob Iger says it is too early to speculate what the changes in Washington will mean to Disney and business in general. He does want Washington to close loopholes and lower the corporate tax rate to make America competitive.

 

[PuppyJonathan]

Disney expects Shanghai Disneyland to be close to break even in 2017.

That's actually pretty amazing considering how much it cost

 

[rteetz]

Bob says Disney has no position on the discussion of "Net Neutrality"

Bob says there is an inevitibility to bringing a Disney branded direct-to-consumer product to the United States, but they are still learning from DisneyLife in the UK.

thats the end of the call

 

[TwoMisfits]

So, in the parks, Disney jacked up prices to try to get more revenue, but then lost too many people, so they cut costs there, too...so as everyone said, "pay more, get less" was the order of the day at corporate...boy, they are losing people already - this is playing with fire...

 

[karen1987]

Interesting points, thanks for the post, rteetz.

 

[Realfrank]

Walt Disney Q4 2016 Earnings Infographic: https://alphastreet.com/b90eb0fd