Post by oldhalfelf on Aug 9, 2023 22:30:17 GMT -5
Interested MagicOwners may find the transcript of today's Disney Q3 2023 Earnings Call at
www.fool.com/earnings/call-transcripts/2023/08/09/walt-disney-dis-q3-2023-earnings-call-transcript/ .
If you prefer the audio webcast, it is at
thewaltdisneycompany.com/disneys-q3-fy23-earnings-results-webcast/ .
==========
Here are a few transcript gobbets of personal interest, disappointment, or dismay to me:
GAMBLING (dismay for me) --
Mr Iger --- "Yesterday, it was announced that ESPN has entered into an exclusive licensing arrangement with PENN Entertainment to further extend the ESPN brand into the growing sports betting marketplace.
"This licensing deal will offer a compelling new experience for sports fans that will enhance consumer engagement. We're excited to offer this to the many fans who have long been asking for it."
and later
"Well, we've been in discussions with a number of entities over a fairly long period of time. It's something that we've wanted to accomplish, obviously, because we believe there's an opportunity here to significantly grow engagement with ESPN consumers, particularly young consumers. And PENN -- why PENN? Because PENN stepped up in a very aggressive way and made an offer to us that was better than any of the competitive offers by far. And we like the fact that PENN is going to use this as a growth engine for their business." [Emphasis added.]
STRIKES (of interest)
Mr. Iger --- "Nothing is more important to this company than its relationships with the creative community, and that includes actors, writers, animators, directors, and producers. I have deep respect and appreciation for all those who are vital to the extraordinary creative engine that drives this company and our industry. And it is my fervent hope that we quickly find solutions to the issues that have kept us apart these past few months, and I am personally committed to working to achieve this result."
STARCRUISER (disappointment for me)
Mr. Lansberry --- "In addition to the inflationary cost pressures we have discussed on prior calls and some of the near-term headwinds at Walt Disney World that Bob mentioned earlier, results reflect an approximately $100 million accelerated depreciation charge related to the closure of the Galactic Starcruiser."
and later
"We are also seeing continued cost pressures in the fourth quarter, predominantly from labor wage rate growth, coupled with $150 million of remaining accelerated depreciation for the Galactic Starcruiser. However, we still expect all-in Q4 operating margins at DPEP to exceed the prior year due to the ongoing strength of recovery at our international parks and Cruise Line."
POTENTIAL DIVIDENDS (of interest)
Mr. Lansberry --- "I would also like to note that from a balance sheet perspective, we've got a strong single A credit rating that reflects the strength that we see in our balance sheet. We made significant progress recently, deleveraging coming out of the pandemic. We're prioritizing free cash flow as a company.
"And we're being really disciplined and smart about how we go about allocating capital across the company. And last but not least, as I noted in my prepared remarks, we hope to still be in a position -- or we plan to still be in a position at the end of this year to recommend to the board of directors that we put a modest dividend out."
================
So, is a long-term gambling deal intended to attract potential ESPN buyers, or to make long-term money from "young consumers" for America's revered-as-wholesome family entertainment company? Was eliminating the Galactic Starcruiser and accelerating its depreciation a corporate income tax management gambit? Is the modest dividend a hope, or a plan? (Regarding the last, the speaker just called it a "plan" in his earlier, prepared remarks but "hope" snuck into the off-the-cuff response to an analyst's question.)
www.fool.com/earnings/call-transcripts/2023/08/09/walt-disney-dis-q3-2023-earnings-call-transcript/ .
If you prefer the audio webcast, it is at
thewaltdisneycompany.com/disneys-q3-fy23-earnings-results-webcast/ .
==========
Here are a few transcript gobbets of personal interest, disappointment, or dismay to me:
GAMBLING (dismay for me) --
Mr Iger --- "Yesterday, it was announced that ESPN has entered into an exclusive licensing arrangement with PENN Entertainment to further extend the ESPN brand into the growing sports betting marketplace.
"This licensing deal will offer a compelling new experience for sports fans that will enhance consumer engagement. We're excited to offer this to the many fans who have long been asking for it."
and later
"Well, we've been in discussions with a number of entities over a fairly long period of time. It's something that we've wanted to accomplish, obviously, because we believe there's an opportunity here to significantly grow engagement with ESPN consumers, particularly young consumers. And PENN -- why PENN? Because PENN stepped up in a very aggressive way and made an offer to us that was better than any of the competitive offers by far. And we like the fact that PENN is going to use this as a growth engine for their business." [Emphasis added.]
STRIKES (of interest)
Mr. Iger --- "Nothing is more important to this company than its relationships with the creative community, and that includes actors, writers, animators, directors, and producers. I have deep respect and appreciation for all those who are vital to the extraordinary creative engine that drives this company and our industry. And it is my fervent hope that we quickly find solutions to the issues that have kept us apart these past few months, and I am personally committed to working to achieve this result."
STARCRUISER (disappointment for me)
Mr. Lansberry --- "In addition to the inflationary cost pressures we have discussed on prior calls and some of the near-term headwinds at Walt Disney World that Bob mentioned earlier, results reflect an approximately $100 million accelerated depreciation charge related to the closure of the Galactic Starcruiser."
and later
"We are also seeing continued cost pressures in the fourth quarter, predominantly from labor wage rate growth, coupled with $150 million of remaining accelerated depreciation for the Galactic Starcruiser. However, we still expect all-in Q4 operating margins at DPEP to exceed the prior year due to the ongoing strength of recovery at our international parks and Cruise Line."
POTENTIAL DIVIDENDS (of interest)
Mr. Lansberry --- "I would also like to note that from a balance sheet perspective, we've got a strong single A credit rating that reflects the strength that we see in our balance sheet. We made significant progress recently, deleveraging coming out of the pandemic. We're prioritizing free cash flow as a company.
"And we're being really disciplined and smart about how we go about allocating capital across the company. And last but not least, as I noted in my prepared remarks, we hope to still be in a position -- or we plan to still be in a position at the end of this year to recommend to the board of directors that we put a modest dividend out."
================
So, is a long-term gambling deal intended to attract potential ESPN buyers, or to make long-term money from "young consumers" for America's revered-as-wholesome family entertainment company? Was eliminating the Galactic Starcruiser and accelerating its depreciation a corporate income tax management gambit? Is the modest dividend a hope, or a plan? (Regarding the last, the speaker just called it a "plan" in his earlier, prepared remarks but "hope" snuck into the off-the-cuff response to an analyst's question.)
