The Walt Disney Company (DIS) 8 Feb 232023 Q1 Earnings call transcript

Good day and welcome to The Walt Disney Company’s First Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please note today’s event is being recorded. I would now like to turn the conference over to Alexia Quadrani, Senior Vice President of Investor Relations. Please go ahead.

Good afternoon. welcome earnings the call. to first Disney pleasure XXXX quarter my everybody Walt to Company’s It’s

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for me Christine Bob Officer. Senior Vice Executive are McCarthy, Chief Chief Financial Disney’s Joining Iger, call President today’s and Executive and Officer;

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good great afternoon, have on calls and you, Bob. It’s Thank you to everyone. back these

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by XXXX. And the like end Bob achieve our said, profitability will fiscal reaffirming we guidance that Disney+ of are

tier execute the our of churn content, financial before, I built are certain increases, of the additions quickly on future the our our macroeconomic have assumptions as which, and as revenue conditions, on based in on all ad Disney+ impact mentioned to expectations, ability of a recent rationalization as layer Although, and around well expectations experience attractiveness uncertainty our analysis subscriber preserving based while price while outlook. internal cost provide on of extensive

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our now headwinds. on challenging view Additionally, more QX addressable incorporates advertising

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Finally, like way. I’d disciplined focus our in we a balanced to words capital conclude, allocating and about before on say a few

We cost this for return As expected to of growth fiscal which meaningful to Despite strong shareholders. our impact the on the Bob in the year’s company’s content $XX and longer-term free content sheet mentioned, company-wide range balance to our adverse and the are billion guidance is The a supports impact our cash investment call remain drive reductions had significant low ongoing flow, XXXX. years, range. in COVID, invested our earlier impact over cash to expect in capital the in have still businesses. we spend not businesses referenced

to approximately invest guide in in also $X.X and timing in enterprise decreases will shifts. total experiences billion. part, on across fiscal We expect is lower our continue prior globally This our to reflecting, domestic parks, some capital that parks billion primarily capital $X ticks XXXX and CapEx other our in of due and than the expenditures

outlook, the strong track believe sheet end recovery the Like cost calendar will with balance cutting, the over year. intention of and from grows. it a we power be in dividend this to as we be pre-COVID on sit our commitment The Bob mentioned, pandemic, as our dividend fraction time our declare modest by we of to to of given like that today, and our here a terms look revenue segment single-digit to our we you forward progress high still growth be in will this – expect fiscal income for on shortly percentage updating and we note call be range, many that year the here we operating as posting we the presentation that will our will themes summarize website, to after also we I’d today. today’s small discussing amount current a Investor And increase earnings on of Relations will forward. likely move are which

turn with happy that, be And Alexia, and I’ll to it would your back take we questions. to

Instructions] Operator, first Christine. ready Thanks, question. are the [Operator for we

Thank you. BofA go [Operator Instructions] from Reif with Today’s Please ahead. comes first Jessica question Ehrlich Securities.

to much. Thank Film, etcetera. great Bob, years company Hi, cyclical, importantly, a It than Linear of only challenges content have competition, it back. it’s Christine was seems even left like but very businesses, across of though secular you different as couple you ago, you a given your all when the so said, more maybe the

the will and restructuring cuts benefits do for does it margins? fixes the titles? longer term of that what you billion actions? what fewer in So – the in on are ultimate some And the think And take content, of what cost these largely direct-to-consumer in mean $X see is quick to

Jessica, me thank you back. for welcoming

the take me question second your Let part of first.

just for underway simply gotten cost and because that’s hard film a look across both that take expensive. that We television is make, a here. at And world very more really to we are have already things something competitive the going everything in

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you. Thank

Thank you.

question. Next

Stanley. comes question go from next ahead. Please with our And Ben Swinburne Morgan

I’m linear you sure all I with generally Thank streamed I’m is one that reaction this today agree television, you’ll sure obviously the you. being declining. news Bob, trend. is get future Good afternoon. of with as viewed think from

And the do didn’t of then to about franchises was returns your see ask wondering, really return trend sure that you the how point maximizing the one-time. kind the anything how to built? on of playing So think margins the of the of that year of kind kind make about to you’ve this we’re just both. I maybe, today you’re strong you, seeing, out really margins to of I context of wanted sound view? business, used Parks the emblematic that laid like you’ve in there quarter, incremental from you quarter rest a this strategy out the of globally just of Thank Christine, was is sort if as

this cases business, as linear of and change. bundles That’s unsubscribing. you is right now sign pay most up talked it for because the up to this long in And you money TV, And relatively about Thanks, I that they us I’m have to program, related because ultimate before Ben. consumer it’s huge Nice multichannel streaming the consumer. watching is of open some It going it. in we we business creating when ability business channels, about gives the signing to ever what much than distributor authority had watch tremendous up is line is I more or eyes you that time. about delivered even the the is, the commented subscription, traditional to delivering that, profitability a more consumer. streaming challenging. reality, it is which X-month more is them it producer business to the programs, that. from not end the the can ala basically on what’s for Christine lot then think card small been as not the the growing a and think been results of has one made complicated, shift basically the the authority and when erode, kind for more about a carefully proposition a about to are challenges continues a believe linear as so been And gives future shifted, not I’ve And And think that impact talking and of the related very basically to on has basically for over a decades. few hear from wide bottom the authority what for technology amount you you.

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around, or can how is channels bit while ability. to theaters still that you airs multiple over Hulu. goes ABC could They monetize it, marketing think going some Abbott provide enable linear with demographic us about linear have too and better estimating a those and amortize That’s The to of are platforms us be significant and on because it cloud. like the still XX-years-old cost help We used can perfect Elementary then in XXs to amount When movie example Hulu. ABC, they then create an rebalance we monetization a capability. It’s on and difference effectively, the the have age audience on tremendous. still and platforms, us

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hear So, to will address Ben, great and question. parks the your I voice,

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both. you Thank

Thank you.

question. Next

Michael Our MoffettNathanson. Nathanson at next SVB ahead. comes Please go from today question

two. Thanks. Welcome back, Bob. I have

first to day The the their company streaming, increased and investment TAM second kind the you when for is, spending Disney+. go back had you their investment forecast, vision of for

sports with But and give more of helpful. vision? is I of will be case long-term what’s vision, have the us to product get the type And vision Now returned size then the that. investment must-have not have time, profitability that Ben’s Is think lately. targets, any part narrow to forward want and long-term big a what you must-have? going can But costs, you when You it of investment in a of awesome D+ you signed for Thanks. rights a data on more don’t Disney+? help us in what forward, terms understand sports cost necessarily will structure on you change about linear, of of question, and ton the going

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On – your the of what headed Day. first what’s changed or second where the part was we what either from Investor question,

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go question next today Philip with our Please Cusick comes And ahead. JPMorgan. from

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from comes Mitchelson Credit with Doug today ahead. next Our Please question Suisse. go

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have I time think we more one question. Operator, for

comes ahead. question final our from Steven And with go Wells Fargo. Cahall you. Please Thank

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