DIS Walt Disney Co (The)

Lowell Singer The Walt Disney Co.
Robert A. Iger The Walt Disney Co.
Christine M. McCarthy The Walt Disney Co.
Benjamin Daniel Swinburne Morgan Stanley & Co. LLC
Jessica Jean Reif Cohen Bank of America Merrill Lynch
Michael B. Nathanson MoffettNathanson LLC
Alexia S. Quadrani JPMorgan Securities LLC
Marci L. Ryvicker Wells Fargo Securities LLC
Todd Michael Juenger Sanford C. Bernstein & Co. LLC
Steven Cahall RBC Capital Markets LLC
Kannan Venkateshwar Barclays Capital, Inc.
Call transcript
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Hello, and welcome to the Second Quarter 2018 Walt Disney Company Earnings Conference Call. My name is Michelle, and I will be your operator for today's conference. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Please note that today's conference is being recorded. the to turn now would call Mr. over I of Singer, Senior Relations. President Vice Lowell Investor begin. may you Sir,

Lowell Singer

Good to and earnings afternoon, welcome call. quarter Company's XXXX second The Walt Disney

available XX Our website. is call on a webcast of ago issued transcript release copy being website about a webcast press and was also is our the on and Today's will our at available minutes and be

President today's then, McCarthy, by and for me Vice Chief Chief Senior call Christine to Officer; and Christine. we'll Iger, Bob Chairman Joining Officer. happy are Disney's Executive followed Executive your will of and Financial off, questions. take be Bob lead course, And

that, started. and So me over it we'll let to get Bob, with turn

Robert A. Iger

in businesses. in and QX, and Resorts Thanks, Parks especially very and Lowell, afternoon, results everyone. our Studio good We're our pleased with

parks drive to leveraging extraordinary content. and through excellence our operational continue Our by effectively growth

for Story opens Orlando Edge calendar that Shanghai to the in strong Land Parks XXXX, Land month. I excitement. with lot I'm expansion reaction. happy As expansion. Toy new bodes new an We're by enthusiasm a reviews in back more And Disney Galaxy's future report and both the underway Story first our world. example, will from met generated Disneyland, our Star the also Wars: thrilled Disneyland with in end the of and park land next open Resorts opening and was well by Toy World our just major in and and got the to the around there's addition

IP domestic bar Panther global industry taking Black instantly from with importance recent creativity. the time, has by biggest an that Story, With the billion branded Frozen next becoming all dozen during terms over as slate tremendous franchise commercial pre-sales express speaks War of Story innovative from most XX office volumes in even and is of office all box a it success, as my drives doing. phenomenon, office the enough it's inclusion. movie largest a results, and superlatives Cinematic The of is Star are Poppins MCU opening. the Black now crossed groundbreaking XX one this combined masterpiece office, proven movie are and statement to the of and X the rest Wars X, Marvel incredible $X.X of huge is record-breaking our a openings Mary as We're both in box that big value to-date, to ages of of its and too. loud starting than It Memorial before to A is Aladdin, $XXX generating up of in movie many strong of IX. than million myths. with ahead, great the audiences Judging Panther average Chinese the Star about lucrative Returns, X, of is opened age-old adequately Marvel, box Ralph of impressive, phenomenal all slate acclaim film. office six opportunity the come of opening an just to domestic become records on by well levels. clear has ticket Infinity in to Solo: $XX organization. team that With Incredibles and Marvel office Studio, We'll performance another and with $X.X in success the our and a Panther of raise top continue unbridled the released, Black Wars: to-date broke Lion more pipeline Studio which $X of our last follow and across There Breaks Turning weekend XX months, inspiring makes which visit, time, so history. of per office box It's Wasp, very eager the The see anticipation that Avengers story-telling, follow interest released new Infinity at the perspectives, and box Day proud power this Captain just more movie work any our and risk with movies in I many people film the recent Dumbo, will The Marvel's office years. Internet, War, releasing is Avengers: with Ant-Man ever significant ahead examples. about worldwide including: We box of box our success. Episode of The a the studio hard latest X, strong entire delivered from The incredible creating than them King, to of studio China. box billion buzz down faster Toy all the billion opened this and of creative movies Universe, lot of This cultural X, breaking far billion to saw

We're we featuring late-XXXX. service gives a over focused proposition value Looking at family-oriented this of a launch sense quality brands. a of in service collection foremost unique our from our film quantity, what's collection direct-to-consumer in real television Disney creating when on consumers, truly you for and store branded products

more this the than deeper being slate movies, potential of The beloved recent the series content an appealing. more platform its details into we're that and for original and Our platform, mix Marvel the content are rich will we new we a months, includes classics, and find entertainment developed. more very by by being currently excited the in drive exceptional content And ever possibilities delve creating value. robust we're other We'll to that of Disney, consumers coming the Pixar, experience confident of releases new created including exclusively strategy Lucasfilm. share

a which will a including content month slate live by the ESPN+. add to exclusively ESPN+ front, enthusiastic. announced very been ago. content On service, just new have has fans about reviews The created of response for original the mix, encouraged strong UFC morning rich we're and the sports And and events our the been this of we launched to the reaction deal sports

said way before, collection the of our brands to the with respected As of great strong will relationships puts we've media. that it incomparable direct over to a define recognized future consumers the and building comes in us lead world the position when

reorganization and recent reflects rapidly changing capitalize on by defined effectively consumer our expectations. to landscape, evolving technology Our a transformative determination increasingly

their and global It including parks, future management and high-quality global choice, for extraordinary of and more our merging businesses content that to this closer experiences the and serve effective We structure promote combining engines and inside characters and bring world distribution people creating our with alignment sports the are Our and operations, life framework We're also expansion, to value most, by and Networks platforms, distribution. strategy growth, Studio content, convenience Resorts into with robust entire home, of Media resources and operations creating maximizing the before. content at technology company, products even ever consumers products and maximize believe than deliver direct-to-consumer international long-term for beyond. and brings a for that technology entertainment the we're to strategy shareholder want direct-to-consumer around combining stories in value. Parks consumer create our use far our personalization our together, and innovative consumers worldwide, the more our new positions to

process as the strategic to I Christine? process, noted results, further same say it And information priorities. any questions. in engage very structure the those If your deal, share deal, reason, over regulatory I'm can't call create Fox would acquiring about of so this ongoing within serve turn you part once Christine the the details in going strongly global of to in QX we approved. fit a in we'll recall, or We're deep the when take strategy to our happy that deal believe the to discuss we we're growth of is then except of be easily confident announced to still we're in we our the and our speculation dynamic for the new marketplace. assets the value that assets to more

Christine M. McCarthy

Thanks, everyone. good Bob, afternoon, and

to pleased of quarter financial outstanding another performance. are report We

quarter items share per the earnings Excluding comparability, to for XX% fiscal up $X.XX. affecting were second certain

the Entertainment by percentage Our room by second percentage the Easter I'll operating spending XX% period, another hotels driven international results and beverage was costs. and and into At week income the this Parks reflect new spending. QX in results X% domestic and quarter Studio Resorts, results of quarter offset the one million income. timing Line's reflect admissions, and with our The segments. domestic year. benefit the primarily a which was partially XX%, X% quarter operating holiday higher about offset holiday quarter about We Magic, to and Per in segment X XX-day after operating the resorts that This our reflects stellar Attendance revenues up domestic reduced dry-dock the and and at and fell Resorts parks occupancy due increased entirely whereas period up income items. XX% the these from of strength the domestic a our of in by points was resorts. account revenue and attendance, of the point Easter Parks to our benefit at $XX XX%. up parks higher estimate adverse note third up even guest setting drove and on the operating to delivered spending of impact was parks up $XX capita Per Cruise food was and growth last holiday. about benefit taking merchandise of records quarter benefit impact net income two at higher and spending at Disney was of Higher the our was partially Easter timing by X of income Disney operating million. two-week

are attendance. weeks and compared and of the continued So pacing two quarter celebration drive resort's the which Easter anniversary rates Resort. attendance, at pacing at nights in the X%. At income increases Disneyland the and occupancy. spending, growth impact Paris reflecting to compared and far up Disneyland and prior At third holiday reservations reduced operating to decrease in resort the Resort was in resorts, prior room guest our Kong hotel unfavorable to operating was period ongoing Booked At higher in to conversions week Disneyland refurbishments are of weather year. increases down parks year. to Hong early room Resort to Kong attendance, Paris, Disneyland due Shanghai and in resulted XXth lower a in Disney Growth occupied Hong due this drove due last international year, income inventory only quarter, quarter, X% compared room domestic to one

saw XXX we nice compared given to to Toy However, March continue Total points last QX segment operating year. positive trend expect basis in the starting this was a Land. launch recovery income recent of and Story up margin

phenomenal another had QX million, carry-over in the We our had TV/SVOD in quarter. Rogue new second Studio and results setting given expected theatrical performance Moana due was Operating up theatrical challenge, and home businesses and income the in a distribution. and of the Our last face increases year. $XXX XX% was growth One comparability operating performance and second income Beauty quarter entertainment of during Beast a to quarter the to record. Growth to

our we pleased in surpassed worldwide our and drove the performance discussed, Bob as However, Panther, which meaningful of more theatrical results. a Black expectations with be increase couldn't

increases third the is than full-year about XXXX operating We its results also impact have impact Media in operating expected Networks, were $XXX primarily income revenue. investments in quarter $XX ESPN+. Equity in to expenses to million prior million from continued by year. and at of quarter. income Hulu, revenues. was income operating programming income Playoff partially primarily of in games the quarter year lower to the The semifinal and, reflected Freeform an with BAMTech's season, now marketing, associated previous Football cable. in ESPN. platform offset losses bowl than our driven losses equity due and I'll a higher programming. investment at lower results the on higher in League at games expect Media ESPN, last higher lower contractual advertising due and driven by quarter acquisition Baseball of as partially in due to to in the was of three and the aired the the the worse the This Turning Hulu second programming cable including in fiscal and bowl A+E. offset in investment MBA were to growth decline was advertising New but increase losses income remind of last of our by The at and equity lesser in during start results that is for the and Major offset College our other sports ESPN extent, lower subscription affiliate At ESPN+. the technology BAMTech controlling reflects investees, due the stake to rate at programming Like income our Cable are estimates, investment BAMTech timing spend a year. to both higher decreased Year's adverse BAMTech's more the year, second during Networks' due now note of a million for college quarter. increased cost The by of $XXX results operating that loss reported income ongoing of six and part higher quarter last compared to you I'll second

impact mix the in semifinal two last Ad higher bowl Playoff first second semifinal year, revenue quarter the due the Football whereas growth the from at ad games positive bowl quarter which X% rates, the estimate shift this the included points aired games revenue was of percentage on year. of of of to the year had semifinal games up into QX games. in QX benefited semifinal this However, quarter. two X in the in games the College about timing We the ESPN a

year offset from program How to of from prior as Lower higher X% quarter, revenue were affiliate year. marketing cash revenue, higher due and The income by are expenses. a primarily decrease So last lower sales income offset to was programming and sales sales, compared revenue comparable higher partially rates. sales by in far QX ESPN's pacing in this growth program in network advertising results Broadcasting advertising network is was decrease ad impressions, at quarter pricing Away upfront in the to Media down above X% fewer year a Network's by with to growth broadcasting. the up to X-point Total both levels. decrease driven due revenue ABC due to by Murder revenue partially last of running scatter and points Get rates, about due growth at this in X to a was year. was Network cable to decline higher QX Higher affiliate offset compared Quarter-to-date, primetime in XX% affiliate subscribers. reflect

the & I'll quarter to And, in on growth consecutive decelerations that affiliate we've subscriber than of comparable finally, the more Consumer note still seen as the Products Interactive of impact declines While subscriber in the was and revenue Media rate modest impact. rounds quarter X income our higher net points, is by lower this exchange unfavorable third declines. foreign store in results were business an offset lower sales licensing retail

and turn your XX.X XX.X During for million Lowell with year-to-date, shares for to billion. shares more billion. we'd be $X.X approximately million repurchased to second $X.X repurchased I'll we've And that, now we take And questions. happy call quarter, than over the

Lowell Singer

question. first for we're Operator, ready the Thanks, Christine.


Thank you, sir.

begin question from the first comes now queue Swinburne the Morgan will We Stanley. in question-and-answer from Ben The session

open. is line Your

Benjamin Daniel Swinburne

XX% have over Parks and one a that your the pretty have pricing digital hotels? you You Thank on the business, or occupancy, business last ahead questions, parks clip. you whether few you. recent at to drive Christine capacity two the healthy mentioned, years, leverage. income results, of ability power at think look for operating sort mentioned, about been on it's When growing I operating double-digit one the talk additional the at Can strategy. Bob, the runway I the

highs. levels When four about over okay, to economy assuming out the if don't they're digital accustomed think next I the margins drivers I of continued know you the is can thought gotten we've you're think – the you just on years front, at And to? but at I this, stab. talk can you answer I I'd are the all-time look three a growth take

You digital ahead announced the last of announcement. pivot your Fox year

to global you your So its how time? assets maybe associated as look essential are out about you could or and not Fox over digital strategy talk

Robert A. Iger

Ben. Sure. Thanks,

from line. obviously we growth, ample about that On question, One, the come It mean, expansion. I'm bottom for talking the expansion. I there's from expense, first multiple will room will think One directions. come

all in hotels including cruise about Shanghai, to know, Lands, Star in two in Paris As of building and parks, the just the is like Tokyo, and Toy around out Florida, the you opened could are multiple Story the on. open one the our ships, Wars we that world, lands new Lands places go I

a is, the the that at is our this creates So IP, popular which Two, of expansion, IP demand part our that's use of we growth. is parks. the more of of one. And, believe course, in lot more our

in pricing. is opportunity Another

As of in believe also us attractions make technology et scale, from And great gives that as certainly delivering running out to terms in leverage not pricing using at better book but is we that experience. like exists. very, experiences and that cetera, we them efficient things expansion, build continued we these going under we circumstances. business that better that experiences scope simply do believe we're margin very to comes while a promise And opportunity the last has advance, been

overall, parks, future out particularly get the build of feel, about being that. of best example as the we probably great of the this to we So business, way newer Shanghai the some by

we the – suggested, the – two Fox product well products of as second the you product announced, new digital and ESPN+ the in On the question, acquisition. advance Disney

are is acquisition. as one be upon acquisition. of capable that taking part of we'll of some of assets dependent buying that Both advantage neither So the

networks. by anchored assets sports part Wars, that from be and to at some there's some Disney, all other going buying is largely And that But be we're and for not dependent proposition. Marvel, the Fox the Fox. so direct-to-consumer opportunities family Star on Disney front, Pixar the great properties On Disney think then Nat regional we of Geo sports front, to of the the the on

we owning course, I'd in property. Searchlight original example, intention some will were both properties. it's two end from of up Hulu, programming Hulu were year is another, come it Fox original other intellectual the using but we dependent neither and Disney Think new And programming. we of much But say, stands FX talking about is again, these this to our one assets talking continue with is as Hulu, fuel upon, that Of XX% not of benefit Fox the announced to acquisition of the and about to more Fox. a And we when acquisition. ago, from

Benjamin Daniel Swinburne

helpful. That's you. Thank

Lowell Singer

next Operator, question, please. Ben. Thanks,


The you, in from comes queue Reif from of next the Jessica question Thank sir. Bank America.

Your open. line is

Jessica Jean Reif Cohen

Two in it's know that you. ESPN+, about Thank would apply then, into up? to talk original do how any On given talk You've far you I questions. learnings more? the content your you've the Disney you the changes Can the had the you we're to-date. actually going Do how consumer process regarding will technology? sales DTC? market's days, overall the next today, you week. announced upfront early can need think environment, views And shaping about change? added you behavior, And of you but think how And so

Robert A. Iger

That's first basically been technology it. you been watched give I car I There to Most the signed has it is case to I statistics that I consumers. and five watched our acquisition quite my is WiFi was live a quality that's to I is get to we'll as me in and the obviously, the intend there live to customize have but a over working, except events library continue is product not with except the assume say so basically We years. the and over invest on, do. so trial considered is start. see Yankee also my products day there to and A that people there, of et better, put teams, far We've quite have good in a our number opportunity favorite we going the get was whether I on continue fantastic. today the the so specific with And starting with my found did improve what UFC reaction opportunity and of it that up, sports. think on product it's other original, both fan the is ESPN+, user while announce interface strong. on XXXX for app that far some We to far. that connection, sports rates some good. to experience But The the I well for so importantly, not game a of in for and sitting good, you the continue we sports conversion linear for part, non-live lot are to and good. buying us give going a – network. don't so cetera, always so moved fuel interest We're products and that that's to serving

a for on of the doing basis. Just Scott that that instance, Pelt SportsCenter equivalent daily Van a is available we've short as will a launched be

a there's So we're lot going to continue of opportunity, invest. to and

to brands. feeling in those wait now as for But producing On now, We're We're good going Disney an of to we're content we about Disney the the content for are the for times, and quantity. both. movie the that opportunity our there. creating feel utilizing to about We're we're amounts Right branded, the Pixar creating ramp of specific essentially That's we're expires, and become content. the few Netflix it. late-XXXX. characters launching original of in is branded And get more content also In and content. good Marvel high-quality for fall original over process right the us looking not franchise get available said of that output quite we're quality deal those that once brands I of about massive a some looking branded. under branded, for looking that Disney that the right closer. we to for front, now it, and Star direction up Wars case, we're headed a we've content we're some original lot And to give

Christine M. McCarthy

with really properties, good are feel ESPN as to-date, couple we the got as television well Idol we'll Disney enter where new ABC ratings about as as where well we shows, the Jessica, good be as And week. good about upfront, really momentum Right American Roseanne. group, of we the we've see other those. we well shows as both as now presenting the we feel next season the with a On that

is things Disney-ABC the ad is that of consolidated through different about year buying we ad a One ago the the Television Group. our selling or

this running So the entity. a upfront single and is up that they're as sales

So our also we upfront sales. think going to help that's

Jessica Jean Reif Cohen

you. Thank

Lowell Singer

Thanks, question, Jessica. please. Operator, next


Thank you, sir. And the next Nathanson question from comes Michael MoffettNathanson. from

line Your open. is

Michael B. Nathanson

I Bob, Thanks. you. have two for

And one what to where bit The division. March And wanted hear in I put were international advertising, a you through Disney park guys content a to by of doing putting you about kind first shifted to done what brand. think there we secondly, in awareness about build the one to is, that? China re-org in trying you gain you've sales, the then, for when in

beacon building the parks move the of kind just as ever overall consider of in products? you strategy, a parts global you Disney's brand other more in OTT to would world a for of As interest

Robert A. Iger

I'll second think in first. part the answer world. may the China, opportunities in also expand there parts to that and opportunity there's We other of be

we because some with that other parks love us we're an would say in We factors engaging we're it markets, all you consider like to soon. to look. of of are have look issues, those Disneyland I'd inevitability the things there's But consider people doesn't But but going at countries, stability, spendable population infrastructure name them it. lives that and typically economic of mean in markets base going build market. that are their the building We're something from which to different other political put take very in to anytime going that in who a constantly to conversations necessarily income, us and

find the of on On organizational asked but way them? And to day come of legacy organized, together looked one one first to the issues, the without only you were day you Fox one a question, fact And integrate how retention, a assets organize And global in clear a we would became not from any global way, have today in was could efficient it managing in Netflix best in of these organized. be and management more that more make the take essentially the decision to includes best acquisition, when we And it. technology. made the how we basically our that. into by ourselves Fox Fox, to name to are been things account have of to transformed businesses typically then reorganize because how customers, content if it led new is modern way It's – technology. their entrants They once the customer seemed a that thought, it platforms sense assets, well if organize to even acquisition, of at now we example. we buy one good company. some ahead the of before on. sense data customer that best distributed the how that considering is that marketplace all billing, means were And And I you

in I'll focused into at is third of looked Parks three there of part three Star, are is or and we And two have part we mostly that then primary the those. ultimately of globe assets that Studio. And we Then what but our exist Fox a and seemed on there one become and that we overlap current did ESPN; Sky to would Consumer include would the that Resorts. The of So all and that platforms, international plug a would acquiring. another physical essentially efficiencies the were and the it one television; big Products exist call then between that assets of basically that the global business across leverage businesses, are sports, are experiences, was Media would that sense technologies distribution acquisition part divisions: as was goods Networks the technology really there where and in across be creating make the that. because part some technologies platform synergies division factor and obvious content in and

make to business. that and seemed I'll And so, are the one in happens, assets it if sense the call platform this international assets acquisition

to there's in but It's a in IP the of around not of more this we're way to with a the way and it. we with with and So internationally. create invest exactly technology, monetizing assets, the our around take continue world. diversify interested only way, of it, experience interface create innovative moving efficiencies the in and dovetails lot make to great how invest an intention in customers terms customers to to company really great an these and which then to in managing it experiences user to it our content effective world, all And is great the just and why people, to efficient company modern products more as

Michael B. Nathanson

Thank Bob. you,

Lowell Singer

you. please. question, Michael, thank next Operator,


question from Alexia from comes Next JPMorgan.

Your line open. is

Alexia S. Quadrani

very Thank Hi. much. you

side, maybe On for can of confidence conclusion on huge success Marvel has can the the I any run. after home this film? opportunity your in incredible content guess the just any continue? been such series is there a Studio Avengers you on general, Or another the next cycle provide, color

Robert A. Iger

characters characters our will we have and there's those be and we the plenty populate there's I'm given it of never Marvel, beyond the have a part that. out fourth stories that the doesn't that more now made the we have at we've guessing conclusion. I right Avengers, Avengers with that We some to lot should ideas. necessarily great universe films us on of Avengers franchise that Marvel a of the be regular we our meet – But just up, some Marvel Ant-Man goal, we XXXX. that Marvel confident haven't But any plotted from that the to lot try new announced announcements have odd The more a call to more with. more Wasp but We of for Captain with of course, team, mine there'll coming conclude we people will that take and decade. fourth and franchise, is don't basis another think you We're road. got into can stories a mean we've of certainly Well, the have popularity and are I'll then installment the won't popularity characters tell, next characters the what will which see then to May was X,XXX Avengers and the that stories Avengers Marvel a significant movies movie. that down well and given lot a hand series The about the

Christine M. McCarthy

Hey. And, comment just Alexia, I'm going a Avengers. to add on

you couple there I about to one think But difference recent point seen if most is and one, it, seen you've short cast. of versus When you've just – of the stellar. in the the dozen is the outstanding of the some Black this that's of nothing size others, I'll think Panther, in a movie movie. the performance Avengers

it. sheer of movie level because involved size cost is going magnitude, be all it and the of scale, the just of not to some cast the be of film scale because this same while and the very return the of may the of the effects, of So other at the special the the films profitable,

Alexia S. Quadrani

have point in of that the maybe do we on how characters jumping size cast, success many you about just when think the the guess so opportunity the CP the you should given movie. talk and I about

Christine M. McCarthy

upcoming to For the this for Consumer well Products four one this Marvel balance Black of the Bob releases perform Products, mentioned, Thor, so property Consumer as along expect this we a is the this from year. the largest of perspective, Panther and, with Ant-Man. was But year do

Alexia S. Quadrani

right. you much. All Thank very

Lowell Singer

please. Thanks, question, Alexia. Operator, next


Marci Thank you. And Wells the question next Ryvicker from Fargo. from comes

line open. Your is

Marci L. Ryvicker

two have I questions. Thanks.

of the strategy around can for in DTC both know marketing Disney ESPN+ first, lot about there's cost about for and I upfront The market concern app. the of your a you ESPN+? the been talk launch

And Shanghai how drive Toy So anything to that? can big is Shanghai remind longer? your Thank Story on you do, secondly, stay marketing relative us attendance have glean then, at for Land the Park people can around what can we either this least or maybe you. and expectations

Robert A. Iger

nature. for strategy modest marketing relatively ESPN+ is The in

dwarfs and We platforms, have competition, a and gave the including Digital is new promote most primarily basically the experience. resorted is and to opportunity digital the to the It existing app websites, the opportunity app. using ESPN what the there. some sports the magazine, marketing time the popular product of out on us channels, ample that ESPN

That digital make to but UFC. a the real continue you as marked size It's dining Story that but some There Orlando. as is opening investment Story we to last It's I'll or of having new ESPN+ are programming built. about of Land, it's But of more not doesn't nature. by a already in we're give to been in to some opportunity it experiences. call And, invest week, made prior Disneyland sports expansion summer So in additional we a the makes got announcement We're until marketplace. Toy marketing the in Toy of dent going the ample what there large, specifics Shanghai increase the product and substantial grow great it have this XXXX, way, costs the it, a that of investment launch, going with to sizable we're to retail Land building modest. come attractions, and beyond in we've the land. park. terms But not scale park,

Marci L. Ryvicker

you. Thank

Lowell Singer

question, Marci. next Thanks, Operator, please.


Todd Next with Juenger from Bernstein. question Sanford comes

open. is Your line

Todd Michael Juenger

that. I wonder And Pacing thinks are. that strong a so on Hi, is, like hours thanks particularly related a seeming contributor and in for the a I number Thank more on one be maybe. X%. as one growth. Makes I you to to minus said lot. the that this be games us. you, One you guess, both positive in for especially to One the what willing the you'd year-over-year SportsCenter decompose just and little always, audience would maybe hoping probably, bit that rough Christine would looks on and for I was terms year. strong NBA content pacing all of with mean, just think downs ESPN. advertising think,

here, that you not dimensionalize would but for positive I'm So the help make and looking contributors, and specifics Bob, negative could maybe faster. this try I'll if awesome? be

content in and over know the share direct-to-consumer, many coming in On going I talked the you times you've to with this that call original us entertainment for mind your you're the have about content the months.

You didn't thoughts, TV Fox, role especially in talk are them What as in much current product, that about on the if library mind content, both the your you at library content, at sharing of Disney the don't contemplated. currently importance or important service? relative service, places your to do And in you And your in it's syndication? traditional where generates it Thanks. think both the entertainment be sense? to and revenue makes when it that okay to be especially exclusive or to is

Christine M. McCarthy

question rounded ESPN. Todd, to mention X%. that pacing was comments take quarter-to-date X%. for down I'll Okay. advertising In That first I did up it my was the

remaining the that quarter. anticipate the and the we well So the with Finals performing in of NBA what about Conference Eastern Final, prospects with advertising where teams the we really being are feel are we good of this balance

Robert A. Iger

for in the this are linear destination the bringing to for and fully, side, content use committed, to product. to the to its success Marvel, be only but Pixar and product the word it other of we Star that to word ourselves is Because successful out use fully channels winning has product any the I the in emphasize current to are being become of operative here. Wars that order long-term, means, Disney, available long-term. the watch market, except making sure On this want not to And marketplace. place Long-term ultimately,

distributed But product this all platforms making and other that by third basis original would committed available product monetized And of movie television will globally an a to many working become So our on with be for that opportunity this for acquisition, exists the app. certainly and with mean app. this Fox library. mind we of our on Century that buying library parties migrating as Geo perfect product this XXst be but the also some we we augment product to are will destination Nat hope for our the more through app, other are that is and to exclusive both what a family-oriented will the comes

Todd Michael Juenger

Very helpful. Thanks.

Robert A. Iger

the question. for thanks Todd,

Lowell Singer

you, Thank Operator, Okay. next please. question, Todd.


question from in Cahall Steven comes next Royal Bank The from of the Canada. queue

Steven Cahall

Yeah. looked have little things now the for one fit of put was with if could And one you if offer Fox. I strong than was rest maybe a portfolio. of for some just Christine. context you wondering wondering Thank you. it you buying cash quarter with To us me. always the different the us view Bob, you that there Sky, the then, of really strategy. And like the you your free you for what for Christine, changed how all into on were of was overall counter that had help reiterate in could Sky I flow. Two Bob, Sky and maybe then strategic a just

guidance, running us cadence this your been any so think give Thanks. buyback like I might what pension helped on lower. have update a year? and We're buyback still in little the probably with just line look has might you might

Robert A. Iger

monetize your any to going – that. we user the of and and to Century is experience ways to we're certainly the quantify we providing Disney I'm service. customer the the and say is Actually, are experience, value – and quality that XX% strategic customer step we've going their is particularly We're the that then in by user-friendly part of should can something got assets, we're of think is what of process believe that that talent not Sky don't that we're the effective and into attractive. to remaining consumers except they to would And impressed we And that's with provide. high-quality there other is appreciate, bring Look, product. XX% not certainly given this the of very buying quality today's Sky, And service our we've question, that can a platform to address we and anyway whole product something We know the shoes the impressed got world they in record not obviously. in update. fit be customer their thing. that the they're going the XXst to I Fox's very, attempting successful buy on provide

Christine M. McCarthy


free very as to what is that XX time. transaction billion would year, buy this time closed. that the change strong. that relates we've right absolutely we But cash it to But flow You're the is by make no this we've got it Fox said

Steven Cahall

Thank you.

Lowell Singer

we'll question. John, thank more you for Operator, take the one question.


Kannan comes in Barclays. queue, The from from next question the sir,

is Your line open.

Kannan Venkateshwar

you. Thank

me. from a couple Just

you much when networks things out remains Thanks. product is done? then, in investments itself like cost of on just now is the just having to and it together look wanted Bob, ESPN+, how especially sense of OTT, perspective, of technology become be you to And that bundle your content that at that an to terms a ESPN+ sports aggregator through like ESPN+ you could in instead is, that the of the First live? much own? systems, when a some figure in the already how And put at from point it provide can comes

Robert A. Iger

Yes, Kannan.

we technology, On that ESPN+. with we provided that technology when BAMTech, the launch us to the question, acquired needed a first

sports cost And that sports as the we then would deal of some acquiring Century XXst the are part as them we that transparent that. here sports call announced And a associated the Fox the were and ESPN+ baked as to announced license we and on marketplace beyond this licensed second of associated that that about and then the already earnings technology are we've Christine today, number the of will create acquisition be opportunities quite there are in when and with perspective. the done. include the well of we cost of we with is a already deal part what that think licensing, including the process a sports commented into so, – goal already that And in her from question, on I our to actually we've

Christine M. McCarthy

Kannan. Yeah,

is technology that of million around we and have Just XXXX impact BAMTech technology some for now November, $XXX we would to Back will numbers total, have this said investment, more. the that it this you of and be their lot platforms. put a is $XX on in told million that about an but

But to estimate quarter. million year that was full investment the a of $XXX among $XXX is technology expenses and be next of So million, will that other lot BAMTech. for the related

Kannan Venkateshwar

All right. Thank you.

Lowell Singer

Kannan. Thanks,

Lowell Singer

of can this Note us a were that found measures to non-GAAP referred joining reconciliation today. website. equivalent measures Relations that Thanks, again, our everyone, GAAP for Investor be call to on on

we We we the update statements them, make statements including assumptions remind of proposed business and and statements under on of to constitute these forward-looking expected this basis statements. the statements completion transactions, the also any performance timing, and the at on certain as time regarding financial views events to do not that our Securities make me and call, future may Let obligation effects and you estimates undertake these the Laws.

to of are number of from statements subject risks a Forward-looking expressed variety factors, a or implied results the in may and results contained light materially including uncertainties, Annual factors of differ actual and in our Report and Form connection filings for concludes with us. joining in Exchange and Thanks in make Exchange we'll filings on and the Securities again our transactions, proposed This XX-K, today's call. Commission Securities with other Bye. Commission. the


for gentlemen, Thank concludes participating. teleconference. and you Thank Ladies today's you. this

You may now disconnect.