Walt Disney Company Q3 Earnings Report

[anthony2k7]

Ouch so they even missed on Disney+??

 

[CastAStone]

Theme Parks lost $1.9 Billion. Media made $3.1 Billion in profit. Studio (Movies) made $668M; D2C (Disney+) lost $706M.

 

[rteetz]

https://twitter.com/x/status/1290742148585984002

 

[hertamaniac]

Link for webcast now live.

 

[CastAStone]

https://twitter.com/x/status/1290742148585984002

For clarity, that doesn't mean that theme parks lost $3.5 Billion, it means that they made $3.5 Billion less than they would have (lost 1.9bn) vs making a profit of 1.6bn

 

[rteetz]

https://twitter.com/x/status/1290742579542327300

 

[hertamaniac]

PDF of release

https://thewaltdisneycompany.com/app/uploads/2020/08/q3-fy20-earnings.pdf

 

[CastAStone]

Media Networks profit was up 48% mainly on the deferral of sports rights payments to future quarters.

 

[rteetz]

https://twitter.com/x/status/1290742801592811520

 

[rteetz]

PDF of release

https://thewaltdisneycompany.com/app/uploads/2020/08/q3-fy20-earnings.pdf

Linked to first post.

 

[rteetz]

Magic Happens music playing on the call and that poor parade has barely been seen by people.

 

[rteetz]

https://twitter.com/x/status/1290743771844444160

 

[CastAStone]

The company actually turned a profit from an operations perspective. They booked a $5 BILLION DOLLAR impairment charge, related to "international channels business", which is the reason they show a $4 billion dollar loss for the quarter.

 

[Vern60]

Did I read that right? They made 6 cents a share vs expected loss of 0.63? I dunno, that's kind of impressive all things considered. Where did that revenue come from?

 

[CastAStone]

Disney has *23 Billion Dollars* in cash. For all the doomsday "Disney is on the brink of bankruptcy" naysayers. They started the quarter with $14 billion.

 

[CastAStone]

Did I read that right? They made 6 cents a share vs expected loss of 0.63? I dunno, that's kind of impressive all things considered. Where did that revenue come from?

If I'm reading the earnings release right, the $8 a month you pay for ESPN, mostly. According to the release ESPN made money hand over fist in the quarter as they didn't have to spend anything to cover live events nor did they have to pay the NBA etc for games that didn't get played.

 

[Brianstl]

The Walt Disney Company today reported earnings for its third fiscal quarter ended June 27, 2020. Diluted earnings per share (EPS) from continuing operations for the quarter was a loss of $2.61 compared to income of $0.79 in the prior-year quarter

 

[gottalovepluto]

Did I read that right? They made 6 cents a share vs expected loss of 0.63? I dunno, that's kind of impressive all things considered. Where did that revenue come from?

#DisneyMath

 

[craigkerstiens]

Did I read that right? They made 6 cents a share vs expected loss of 0.63? I dunno, that's kind of impressive all things considered. Where did that revenue come from?

Correct, the details of profit harder to get at but we can see how the revenue split was:

• Media Networks: $6.56 billion, down 2%
• Parks, Experiences and Products: $983 million, down 85%
• Studio Entertainment: $1.74 billion, down 55%
• Direct-to-Consumer and International: $3.97 billion, up 2%

Presumably they were able to eek out a profit by dramatically cutting the costs of parks being closed. And that media networks weren't as hit as expected could be a big help as well.

 

[hertamaniac]

$18B borrowed can inflate a capital/cash reserve.