Disney Q2 Earnings Review

Disney just finished up their coverage of their second quarter earnings and announced a few updates as well, including one that shocked disney fans.

Laughingplace.com, one of the sites i write for, did a live blog coverage for it and here's what we learned.

• Disney Stock missed expectations, making $1.36 per share vs the expected $1.40 per share.
• Revenues were 12.97 Billion compared to the expected 13.19 billion.
• International Parks suffered this quarter.
• Cable network revenue decreased by 2%, Parks and Resorts income increase by 10%.
• Foreign currency impacted the Parks and resorts and consumer products since the dollar was strong.
• first time in 5 years that Disney missed earnings expectations.
• Domestic parks break records continuously while Shanghai Disney pre opening expenses and hong kong disneyland's lower attendance offset part of the strong domestic performance,\.
• Disney almost doubled the amount invested in domestic parks compared to last year
• Consumer products and Interactive media was down 8% due to foreign revenues and low performer disney store and disney infinity sales.
• SHOCKING NEWS: DISNEY INFINITY IS ENDING FOR GOOD
• Revenue is up at Disney parks but attendance is flat. Increased results were due to high guest spending. Disneyland saw little growth due to offset by walt disney world.
• Operating income at studios up 27% due to Zootopia and Star Wars: the force awakens
• Zootopia #1 grossing film of all time in china and 2nd worldwide behind frozen.
• Occupancy at Disney resort hotels down 1% but spending up 5%.
• Disney cruise line did well this half of the year.
• ESPN ad revenue was down 13% YOY
• Lack of growth in toys to life market with high development costs created challenging business model.
• Leap day also affected Disney earnings
• Disney Infinity ending, they wish to focus on license console only games; will result in 300 layoffs.
• Disney passed $3 billion in global box office, faster than any other studio.
• Jungle Book is the highest grossing film in india
• Disney holds 5 out of 6 of the highest grossing weekends on record.
• Iger specified that they will make a turn with Shanghai Disney's grand opening and specifically called out POTC as a park highlight.

Q&A Section

Q: Could Iger's contract be extended with Tom Staggs stepping down?
A: There are 2 years left on his contract which leaves plenty of time to find his replacement. he has no planes to extend his contract again.

• Disney can't comment on subscription numbers to Sling or Sony Vue but Iger says after services were added to ESPN they saw increased subscriptions.
• Iger says company wishes to expand Hong Kong and Tokyo Disney.
• He pointed out that not all franchises will lead to consumer products like Zootopia and The force awakens.

Q: Shanghai and how the park will further promote disney films in china?
A: Iger says there is no push back for shanghai so far. ZOOTOPIA CHARACTERS WILL COME TO CHINA SOONER THAN ANTICIPATED. 

• Iger is pleased with performance of DisneyLife in UK. Says there is more to be had in Subscription and Affiliate revenue than Ad revenue.

Q: Sling and if Disney will join multi stream product?
A: They are still in discussions regarding this.

Q: What disney has learned about the game console business opposed to licensing?
A: Iger says part of the issue with Infinity was having to hold inventory of the figures. 

Q: ABC and what he hopes to see from it?
A: He likes for ABC to think outside of the box. He feels good about the prospects this year for ABC.

Overall Takeaway from the Conference:

1. Studios is firing off all cylinders and doing very well
2. Company is highly optimistic about Shanghai Disney
3. Disney Infinity is Done.