The Walt Disney Company (NYSE:DIS) recently held its Q3 2024 earnings call, revealing some impressive figures and shedding light on future plans. The entertainment giant exceeded expectations, reporting an EPS of $1.39 against the anticipated $1.20. The call, led by Alexia Quadrani, Vice President of Investor Relations, featured significant insights from key executives including CEO Bob Iger and CFO Hugh Johnston.
The session was structured as a Q&A, providing analysts an opportunity to dive deep into Disney’s performance across various sectors. Jessica Reif Ehrlich from Bank of America kicked off with questions about global demand for Disney’s theme parks and the implications of the new NBA contract. COO Johnston emphasized the strength of Disney’s IP in attracting visitors, despite a slight moderation in park demand. He provided a detailed view of Disney’s projected financials, mentioning the launch of three new cruise ships over the next 18 months, which are expected to contribute positively in the coming quarters.
On the streaming front, Ben Swinburne from Morgan Stanley questioned the outlook for Disney+. Iger reassured that the platform sees robust growth fueled by the continuous success of both television content and major motion pictures. He highlighted upcoming major releases like “Moana 2” and “Mufasa,” which are expected to enhance subscription growth and pricing power. Meanwhile, the company remains optimistic about reducing churn through strategic price adjustments and the introduction of additional content like ESPN and news programming.
Regarding Disney’s future expenditures, particularly after securing long-term sports rights like the NBA, COO Johnston discussed the balance of investing in sports, scripted TV, and movies. Both Johnston and Iger expressed confidence in the continuous investment across various content streams, reinforcing the company’s commitment to driving growth and engaging audiences.
Lastly, when questioned about the advertising climate, Johnston noted that Disney is experiencing a robust ad market with 8% growth in advertising revenue for the quarter. This success is attributed to the company’s strong portfolio of live sports and popular streaming content. The company’s strategic bundling and advanced advertising technology continue to attract a diverse range of advertisers, ensuring sustained revenue growth.
It’s clear that Disney is leveraging its rich portfolio of IP, technological advancements, and strategic investments to navigate the evolving entertainment landscape. The team’s insights during the earnings call have paved a positive outlook for the company’s future, reinforcing its position as a leader in the industry.
Source: Insider Monkey Transcripts
