Walt Disney Company (the) · NYSE:DIS
Walt Disney Company (the) — Q1 2024 Earnings Presentation
28 slides from Walt Disney Company (the)'s earnings presentation, Feb 7, 2024
Slide 1: Earnings Presentation
SENTATION J
Slide 2: Forward-Looking Statements
Forward-Looking Statements Certain statements and information in this presentation may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding earnings expectations and expected drivers; future cost reductions
Slide 3: Disney's New Era of Building is Well Under Way
Disney’s New Era of Building is Well Under Way * ESPN’s domestic sports business continues to grow year over year Future of * We have plans to forma JV with Fox and Warner Brothers Discovery to launch a streaming sports service!) ESPN * The official launch of a stand-alone ESPN service is planned fo
Slide 4: Confident in the Value of Sports and the Power of ESPN
Confident in the Value of Sports and the Power of ESPN, the #1 Sports Media Brand For Every Generation ESPN increased its overall audience in calendar year 2023 across platforms * Linear ratings increased for the third consecutive year, finishing up +2% in P2+ and up +3% in P18-49 | > * ESPN+ finish
Slide 5: Continuing to Build ESPN into the Preeminent Digital Sports Brand
Continuing to Build ESPN into the Preeminent Digital Sports Brand, Allowing us to Reach Fans in Compelling New Ways New Planned JV F : : Stand-Alone Potential Strategic with Fox and Warner : ¥ (1) ESPN Service Partners Brothers Discovery’ * JV to build an innovative new platform to * We plan to make
Slide 6: Focused on Building Streaming into a Profitable Growth Business
Focused on Building Streaming into a Profitable Growth Business We expect ongoing subscriber growth over the longer term to be driven by: Technology advances The impact of making that are intended to Hulu content available improve our content on Disney+ for bundle promotion and subscribers and disco
Slide 7: Our Best-in-Class Storytelling Continues to Achieve Critical Success
Our Best-in-Class Storytelling Continues to Achieve Critical Success +0 . + Ue Took home 37 Primetime Emmy Awards, more than any other company + + * Our programming swept the comedy categories, with The Bear + + winning more awards than any other show — including Best Comedy — and a historic Lead Ac
Slide 8: We Have a Robust Slate of New Theatrical Releases
We Have a Robust Slate of New Theatrical Releases as We Continue Revitalizing Our Creativity oe SOKO CAPTAIN AMERICA ™ ee Frozen 3 First Toy Story movie since 2019 DEADP@GL ALIEN — © ROMULUS elo Gn se Zoolopin MUE A S A New Star Wars movie that brings the AVATAR Mandalorian and Grogu to the big plea
Slide 9: Our Industry Leading Experiences Business Continues to Bring IP to Life
Our Industry Leading Experiences Business Continues to Bring Our World-Renowned IP to Life Across Our Theme Parks Vas Bb A ailics DRE tion ie iii eR Journey of Water, Inspired by Moana World of Frozen Zootopia Disneyland Hotel Pixar Place Hotel November 20, 2023 December 20, 2023 October 16, 2023 Ja
Slide 10: New Opportunities for Consumers to Engage with Our Characters and Franchises
We're Creating New Opportunities for Consumers to Engage with Our Characters and Franchises Disney is a Leading Games Licensor Working Planning to Create an All-New Games and with Best-in-Class Developers and Publishers Entertainment Universe with Epic Games * Disney’s games business continues to de
Slide 11: Increasing our July Dividend Payment by 50%
Increasing our July Dividend Payment by 50% and Targeting $3 Billion of Share Repurchases in Fiscal 2024 We see ample opportunity to increase shareholder returns as our earnings and free cash flow continue to grow 5 OB gute @! On a total company basis, we are We are still on track to generate The Bo
Slide 12: Business Results
BUSINESS RESULTS ©Disney First Fiscal Quarter Ended December 31
Slide 13: Q1 Results for Fiscal 2024
Q]1 Results for Fiscal 2024 (In Billions, Except Per Share Amounts) 23.5 23.5 22320 $ $3.9 $1.22 $1.04 $0.99 $3.0 $2.9 $0.70 $1.8 Q1'23 Q1'24 Q1'23 Qu'24 Q1'23 Qu'24 Q1'23 Q1'24 Q1'23 Q1'24 Revenues Income Before Total Segment Diluted EPS Diluted EPS Income Taxes Operating Income” Excluding Certain
Slide 14: Q1 Entertainment Results
Q]1 Entertainment Results {In Billions) Linear Networks * Operating income decreased vs. the prior year due to lower advertising and affiliate Linear Networks $5.5 revenues, partially offset by lower programming and production costs Revenues * Lower domestic advertising revenue was driven primarily
Slide 15: Entertainment DTC Quarterly Results
Entertainment DTC Quarterly Results (In Billions) at23 er Os23 On ot 28 * Q1’24 Entertainment DTC operating loss improved by about $850 million vs. the prior year and by nearly $300 million vs. Q4’23 * Revenue increased sequentially by over 10%, benefitting from higher subscription and advertising r
Slide 16: Q1 Disney+ Core Subscribers & ARPU
Q1 Disney+ Core Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USD) —~ o. «(1 . Q1’24 vs. “Dene + Domestic! Subscribers arzalas23 46.6 46.5 46.1 (0.5) (0.4) Q1'23 Q4'23 Q1'24 ‘a . . “Penep+ International?) Subscribers 57.7 66.1 65.2 47.5 (0
Slide 17: Q1 Hulu Subscribers & ARPU
Q1 Hulu Subscribers & ARPU (Paid Subscribers in Millions and Average Monthly Revenue per Paid Subscriber (ARPU) in USD) h ] . Q1'24 vs. UIU Subscribers Gee GEE Total Hulu 48.0 48.5 49.7 +17 +12 LiveTV + SVOD +0.1 +0.0 SVOD Only +16 +12 au'23 Q4'23 au'24 SVOD Only ARPU $12.46 $12.41 $12.29 ($0.17) +$
Slide 18: Q1 Sports Results
Q1 Sports Results {In Billions) Revenues ESPN Domestic $4.0 $4.1 ESPN International Star Q1'23 Q1'24 Operating Income (Loss) () ESPN Domestic $0.3 ESPN International Star ($0.1) ($0.1) ($0.3) Q1'23 Q1'24 income also includes Equity in the Income of Investees of $3 million in Q1’23 and $13 million in
Slide 19: Q1 Experiences Results
Q]1 Experiences Results (In Billions) Revenues Domestic Parks & Experiences Domestic Parks & $6.3 * A modest decrease in operating income vs. the prior year reflected lower $6.1 k Experiences results at our domestic parks and resorts, largely offset by higher results at Int’l Parks & Disney Cruise L
Slide 20: Appendix
APPENDIX First Fiscal Quarter Ended December 30, 2023
Slide 21: Select Upcoming Theatrical Releases
Select Upcoming Theatrical Releases (Reflects publicly announced planned releases as of February 7, 2024; list is not exhaustive; subject to change) April 5, 2024 The First Omen 20th Century May 10, 2024 Kingdom of the Planet of the Apes 20th Century May 31, 2024 Young Woman and the Sea Disney June
Slide 22: Select Upcoming Disney+ and Hulu Releases
TS cs cc Select Upcoming Disney+ and Hulu Releases (Reflects publicly announced planned domestic releases as of February 7, 2024; list is not exhaustive; subject fo change) Early 2024 X-Men ‘97 Marvel Disney+ Scripted Series February 7 The Marvels Marvel Disney+ Feature Film February 9 Suncoast Sear
Slide 23: Fiscal 2024 — Selected Sports Timing Comparisons
Fiscal 2024 — Selected Sports Timing Comparisons (As of February 7, 2024; items are not exhaustive; subject to change) Ql Q2 No Big 10 renewal in FY24 (held rights in Q1’23) Q3 a4 ICC T20 in FY24 vs. in Q1'23 New SEC deal begins Net shift of 1 College Football Playoff game, including 2 semi-final ga
Slide 24: Upcoming Parks and Experiences Openings & Events
Upcoming Parks and Experiences Openings & Events (Reflects publicly announced planned openings and events as of February 7, 2024; list is not exhaustive) June 6, 2024 Fantasy Springs Tokyo Disney Resort June 2024 Disney Lookout Cay at Lighthouse Point Disney Cruise Line July 1, 2024 Disney Vacation
Slide 25: DTC Product Descriptions and Key Definitions
DTC Product Descriptions and Key Definitions Product offerings In the U.S., Disney+, ESPN+ and Hulu SVOD Only are each offered as a standalone service or together as part of various multi-product offerings. Hulu Live TV + SVOD includes Disney+ and ESPN+. Disney+ is available in more than 150 countri
Slide 26: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation includes diluted EPS excluding certain items and total segment operating income, both of which are important financial measures for the Company, but are not financial measures defined by GAAP. These measures should be reviewed in conjunction with the mos
Slide 27: Reconciliation of Diluted EPS Excluding Certain Items for Q1
Reconciliation of Diluted EPS Excluding Certain Items for Q1 (In Millions except EPS) The following table reconciles reported diluted EPS to diluted EPS excluding certain items for the first quarter: (S in millions except EPS) Quarter Ended December 30, 2023 As reported Exclude: Amortization of TFCF
Slide 28: Reconciliation of Total Segment Operating Income for Q1
Reconciliation of Total Segment Operating Income for Q1 (In Millions) The following table reconciles income before income taxes to total segment operating income ($ in millions): Quarter Ended Dec. 30, 2023 Dec. 31, 2022 Change Income before income taxes $2,871 $1,773 62% Add (subtract): Corporate a
Walt Disney Company (The) — Q1 2024 Earnings Presentation on 6ix