Q3 2024 Walt Disney Co Earnings Call Transcript
Key Points
- The Walt Disney Co (DIS) reported 2% revenue growth in Q3, driven by strong IP in their parks and reluctance of people to cancel vacations.
- The company has secured long-term sports rights, including the NBA finals for 12 years, which is expected to drive significant value.
- Disney+ is broadening its content offering, including Hulu, news, sports, and international NBA rights, which is expected to support subscriber growth and pricing power.
- The company is optimistic about the future of its streaming business, with plans to add new features and improve technology, including a password-sharing initiative and stronger recommendation engines.
- The Walt Disney Co (DIS) has a strong lineup of upcoming movies, including Moana, Mufasa, Captain America, Snow White, and Avatar, which are expected to drive global streaming value and box office success.
- The company expects a mid-single-digit decline in operating income for fiscal Q4 and similar results for the next few quarters due to expenses attached to new cruise ships.
- There is a slight moderation in demand for theme parks, with attendance flat in Q3 and expected flattish revenue in Q4.
- The lower-income consumer is feeling stress, and high-income consumers are traveling internationally more, impacting domestic park attendance.
- The company is facing challenges in Disneyland Paris due to the Olympics, which has affected bookings.
- ARPU for domestic Disney+ slipped in the quarter due to subscriber mix shift, including bundling and the shift to the ad-supported tier.
Good day, and welcome to The Walt Disney Company third-quarter 2024 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, Vice President, Investor Relations. Please go ahead.
Good morning. It's my pleasure to welcome everybody to The Walt Disney third-quarter 2024 earnings call. Our press release, Form 10-Q, and management's prepared remarks were issued earlier this morning and are available on our website at www.disney.com/investors.
Today's call is being webcast, and a replay and transcript, as well as the third-quarter earnings presentation, will all be made available on our website after the call. As we previously announced, today's call will follow a new format consisting only of a question-and-answer session.
Joining me this morning are Bob Iger, Disney's Chief
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