Lightning Lane and Genie+ keep guests away from the parks, which impacts its revenue, whilst the cost of Marvel’s worldbuilding batters its bottom line. That’s before you even get to other headwinds facing the Mouse such as the effect that cord-cutting is having on its ESPN continuous delivery maturity model division. Since Iger returned as CEO, Disneyland has increased the number of the cheapest tickets that it sells and has allowed guests to park hop earlier. Free downloads of ride photos are now offered to all ticketed guests whilst they now come with Genie+ at Disney World.
- We project that merchandise, food, and beverage revenue will see similar growth, as will resorts revenue.
- The Walt Disney Company DIS is set to release its fiscal third-quarter earnings report on August 9, 2023, after the close of trading.
- Disney Genie is a complimentary service which provides personalized itineraries and planning for a Disney resort visit.
- That’s why Iger noted the company’s businesses that “will drive the greatest growth and value creation over the next 5 years … are inextricably linked to our brands and franchises.”
- Iger set to work quickly, cutting costs and reorganizing departments to put the focus back on creativity.
As a result, he says a feature length animated sequel will get a theatrical release in November, “This was originally developed as a series, but we were impressed with what we saw and we knew it deserved a theatrical release.” The Eras Tour (Taylor’s Version) concert film will head to Disney+, in an exclusive streaming debut, on March 15. The film will include the song “cardigan” and four additional acoustic songs that Iger says “were not in the theatrical or digital purchase release of the film.” The daily chart for Disney shows the long-term downtrend of 58.5% from the high of $203.02 set on March 8, 2021 to the low of $84.07 set on December 28, 2022. The simple answer to that question is that Lightning Lane and Genie+ still remain despite being the most hated changes of them all.
Walt Disney Management
The studio didn’t even cut corners on voice work with Britain’s Paul Bettany playing an artificial intelligence program. This wouldn’t be such a problem if Disney+ had been a profit center but it has been loss-making since it launched in 2019. In Disney’s latest quarterly results, streaming losses hit $512 million and the platform isn’t expected to be in the black until 2024. Addressing this challenge is one of the reasons that Disney asked Iger to cut short his retirement and return to the helm of the company in November last year.
Nvidia passes Alphabet to become No. 3 company by market value
The most recent semi-annual cash dividend of $0.88 per share was payable Jan. 16, 2020. The company has not declared or paid a dividend https://g-markets.net/ with respect to FY 2021 operations. Disney initially opted not to join the many other large companies opposing the measure.
Then there’s the lack of profitability at its Disney+ streaming service and the decline of its traditional linear television business. Still, “the timing and path forward still remain pretty ambiguous” for Disney’s streaming profitability targets, Nathanson added. For fiscal 2025, the analyst has projected Disney’s direct-to-consumer streaming division will have a margin of 6% ($1.7 billion) on an earnings-before-interest-and-taxes basis on $26.5 billion of revenue. MoffettNathanson maintained its “buy” rating on Disney shares and increase its price target to $120/share (up $5).
However, in so doing, it has forgotten that a lot of the hype around the original Star Wars trilogy was fueled by fans having to wait years for the next instalment. The same was true with the original Marvel movies but there are now so many that even devoted fans struggle to keep up with them all. The more movies there are, the more Marvel needs to mine its more fantastical storylines to come up with new plots and the less believable they become. What’s more, Marvel is still persisting with its inter-connected storylines despite lukewarm receptions to several key instalments, chief of which is Quantumania as it introduced the villain for the Marvel’s upcoming team-up movies.
In the company’s fiscal third quarter, ended July 1, this division brought in $8.3 billion in revenue compared to $7.4 billion in 2022, a 13% increase. Given the short-term headwinds Disney faces, it’s understandably hard to see the long-term picture. The company’s linear TV business, such as its ABC network, is under pressure financially in the face of streaming services, and newer entertainment rivals such as Netflix. As CEO Bob Iger noted, the “trends being fueled by cord cutting are unmistakable.” We expect that fiscal 2023 admissions revenue will remain ahead of fiscal 2019, despite consumer worries about the economy and inflation.
The 50 Greatest Romantic Movies of All Time
The company also announced a dividend of 45 cents a share, payable in July, which is 50% higher than its January payout. For example, in the most recent earnings report, Disney’s direct-to-consumer business saw its operating loss narrow to $659 million from more than $800 million year over year. The Disney Parks, Experiences, and Products segment includes a network of theme parks, resorts, and cruises under the Walt Disney World and Disneyland banners. Parks include the flagship Walt Disney World in Florida, Disneyland Paris, and Hong Kong Disneyland Resort. Guests can also enjoy themed vacations under the National Geographic banner and others.
Although guests hate this new model, the Street loved the incremental payments that come with it and this is another reason why Disney’s stock soared. However, this actually set Disney up for a fall just as it did when its stock surged on its decision to place its chips on streaming. Before the pandemic, guests could ‘hop’ from one Disney World park to another as many times as they wanted each day.
So the restructuring has disenchanted investors whilst fans are still furious. Then comes the fact that Lightning Lane booking window opens at 7am and sells out fast so guests have to be up at the crack of dawn just to secure their place on their favorite rides. This preponderance of productions shows that Marvel has moved into the third stage of the process which is iterating its format to wring as much money out of it as possible.
Insiders that own company stock include Amy Chang, Brent Woodford, Christine M Mccarthy, Mary Jayne Parker, Robert A Chapek, Robert A Iger, Sonia L Coleman, Susan E Arnold and Zenia B Mucha. The company is scheduled to release its next quarterly earnings announcement on Wednesday, May 8th 2024. Disney and Iger have been under pressure from activist investor Nelson Peltz to improve results. Peltz’s investment firm told CNBC in a statement Wednesday, “We saw this movie last year, and we didn’t like the ending.” Ostensibly, Disney introduced the system to control crowds during the pandemic but it also reflected a policy shift to fewer guests paying more rather than more guests paying less.
The Epic Games partnership could prove fruitful but is likely to be a “slow burn,” he said in a note. Disney’s stock got an early boost Thursday morning following the company’s announcement in an earnings call late Wednesday that it will invest $1.5 billion in a partnership with Epic Games, makers of Fortnite. Annual pass holders are typically locals who visit the parks frequently to hang out. They ride fewer attractions and buy less in the restaurants and shops than typical vacation guests because they live locally. In short, they take up capacity that might otherwise be used by bigger-spending out-of-state visitors so Disney put a cap on them by ceasing the sale of annual passes. Daily housekeeping was dropped at Disney World’s on-site hotels whilst the previously-free wristbands that serve as combination room keys and park passes were priced at $34.99.
DIS Stock News Headlines
The success of Disney’s studio capabilities, bolstered by the Fox acquisition, drives the firm’s DTC ambitions with Disney+, Hulu, and ESPN+. Disney’s ability to monetize its renowned characters and franchises across various platforms, along with the continuous expansion of its library through new franchises, contributes to its long-term value generation. As of Feb. 2, 2022, there were 1,820,633,408 common shares of Disney stock outstanding. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
The Mouse used the opportunity to refurbish attractions which were difficult to take out of service when the gates were open. It also carried out a root and branch analysis of how to extract even more money out of visitors and started to implement the changes when the gates swung open again. Based on the competitive media markets Disney operates in and its revenue exposure to advertising and parks, which are both dependent on the economy, we give the company a Morningstar Uncertainty Rating of High.
Disney lost customers on streaming platform Disney+, but revenue was higher due to a hike in subscription costs. The company also updated investors on its plan to cut costs by at least $7.5 billion by the end of fiscal 2024, and forecast earnings per share for the year of around $4.60. As recently as the first quarter of this year, attendance at Disney World during peak holiday weeks was still capped at nearly 20% below pre-pandemic levels, which the company said improves the guest experience. Revenue at its Parks, Experiences, and Products division rose 21% to $8.7 billion in the quarter and Disney said that the guest spending growth was due to an increase in average per capita ticket revenue driven by Genie+ and Lightning Lane. It looks like Marvel didn’t see the writing on the wall because as the world began to come out of lockdown, it was commissioning a glut of costly streaming shows, and it is now literally paying the price. Its bloated pipeline puts more pressure on visual effects teams and increases the chance that the end result may not be up to scratch.