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DIS - The Walt Disney Company (NYSE)

Discussion in 'International Markets' started by Value Collector, Jun 18, 2014.

  1. Value Collector

    Value Collector Have courage, and be kind.

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    The Walt Disney company is a global Media, Entertainment and Leisure Company.

    Its holdings are divided in 5 Groups,

    Media Networks - which hold Disney's ABC Television networks and owned TV stations, ESPN sports network and Disney's pay TV channels, ABC studios which produces TV programing such as revenge, couger town, greys anatomy etc for global distribution.

    Parks and Resorts - which owns or licences out Disney Branded Theme parks in California, Florida, Tokyo, Paris, Hong Kong and currently constructing Beijing Disney land. Disney also owns Hotels, resorts and shopping and dining in and around their parks as well as a resort in Hawaii and four cruise ships and a vacation club membership program.

    Walt Disney studios - Which produces Animated and live action films under various names eg. Pixar, Marvel, Lucas film, Walt Disney Motion Pictures, Walt Disney Annimation and touchstone pictures. They also operate a theatrical group that produces stage musicals eg the lion king, mary poppins etc and Disney on ice shows and a music studio.

    Disney Consumer products - Is the worlds biggest licencing businesses which licences Disney's characters for use on a wide range of products including clothing, bedding, toys etc It also includes Disney publishing which is the worlds largest publisher of children's books and 340 stores that sell High quality Disney products.

    Disney Interactive - Creates Interactive Games and Apps for mobile devices,
     
  2. Value Collector

    Value Collector Have courage, and be kind.

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    Re: The Walt Disney Company - DIS (NYSE)

    This Companies assets are cash generating machines and is benefiting from a string of successful movie releases including Frozen, Captain America, Maleficent. Releasing Hit movies not only increases profits in the movie studio business, But the benefits flow through to all the other businesses, especially the consumer products and the theme parks group,

    Disney's assets are cash generating machines, and while they only pay out 25% as dividends the strong cash flow funds large scale share buybacks and future growth.

    Disney earned just under $4 / share last year, and this years hit movies, combined with a $6Billion share buy back earnings / share should be increasing this year.

    Next year will see the opening of a new theme park / resort in Beijing and several more movies including the latest star wars film.

    I am currently holding 700 Disney shares and looking forward to watching this company into the future, I think this stock is a great long term hold.
     
  3. Value Collector

    Value Collector Have courage, and be kind.

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    Re: The Walt Disney Company - DIS (NYSE)

    Correction - where I mentioned Beijing Disneyland, I should have said Shanghai Disneyland. The new theme park is in shanghai not Beijing
     
  4. Value Collector

    Value Collector Have courage, and be kind.

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    Last edited by a moderator: Dec 30, 2016
  5. Value Collector

    Value Collector Have courage, and be kind.

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    Disney reported record full year earnings, their fiscal year finished in the last quarter.

    Revenues for the year increased 8% to a record $48.8 billion.
    • Net income for the year increased 22% to a record $7.5 billion.
    • EPS for the year increased 26% to a record $4.26 compared to $3.38 in the prior year.

    All of their business units had a great year.

    The studio Business was boosted by the run away success of "Frozen", which in turn Boosted sales of the consumer products licencing business and also helped boost attendance at Disney's theme parks and resort hotels. The theatrical Business is performing strongly also as this seasons Disney on ice presents "frozen".

    Outside of the success of frozen, Disney has had strong performance from Marvel's "Captain America" and "Gaurdians of the Galaxy" and the Disney movie "Maleficent". There is a pretty strong line up of Movie's in production to be released over the next 3 years including star wars, more marvel films, and animation from both the Pixar and Disney studios, I think strong sales will keep rolling in.

    The also have purchased $6 Billion worth of stock in the last 12 months, which follows their strategy of paying modest dividends and using excess capital to repurchase stock.

     
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  6. Value Collector

    Value Collector Have courage, and be kind.

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    Bloomberg Commentary. Earnings.

     
    Last edited by a moderator: Dec 30, 2016
  7. Value Collector

    Value Collector Have courage, and be kind.

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    Disney has exceeded expectations in it's quarterly report, causing it's share price to leap $7 to an all time high of $101.28

    Revenue was up 9%, and net income was up 19%.

    the result was achieved by increased profits in all the Disney businesses, theme parks saw increased attendance and a higher customer spend, hotel occupancy was up, the Disney cruise ships saw higher passenger sailing days, consumer products division had high sales on the back of frozen merchandise, studios saw higher income from recent releases and home video, and media networks profit was also up.

    earnings per share in the quarter was $1.27, up from $1.03.

     
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  8. Value Collector

    Value Collector Have courage, and be kind.

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    Disney looks set to report a great Half year earnings with the New the latest star wars film smashing records at the box office, and selling star wars merchandise like crazy this Holiday seasons.

     
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  9. johnpendles

    johnpendles

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    The film aspect of Disney is not overly big. That's why despite Star Wars dominating, the stock price hasn't moved much. Likely a lot of the expectations was already built into the price.

    The BIG concern about Disney is the continual loss of ESPN subscribers. People are leaving Cable TV by the millions and this is costing Disney big time.

    They can't rely on cable anymore, that model is dead. The saving grace will be if/when Disney spin off ESPN into its own subscriber service like HBO has done etc
     
  10. Value Collector

    Value Collector Have courage, and be kind.

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    The Star Wars success will definitely add over $1 billion of earnings when you factor in both studio performance and the consumer products division.

    Cable isn't dead, it's declined but it will be around for a long time, but as you eluded to the content will find a way to be monetized, people aren't watching less content they are watching more, the net gain from other growing platforms eg Netflix and even YouTube will offset declines in more traditional media.

    But either way, Disney is super strong, and the success its content is key, and the success of Star Wars is not just going to guarantee 1 good studio year, but a long run of consumer product earnings, and related content.

    Look at what frozen did, Star Wars will be much bigger
     
  11. johnpendles

    johnpendles

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    Disagree. The Star Wars factor makes up about 1% of their revenue. ESPN makes up 30%.

    Star Wars franchise is great for Disney moving forward but until they fix their ESPN problem, its almost inconsequential.

    Cable isn't dead. But that model is dead. Unless Disney figures out a way to turn their ESPN investment around the Star Wars boom won't make much difference.

    I love Disney for a long term hold.
     
  12. Value Collector

    Value Collector Have courage, and be kind.

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    Stars will be responsible for a lot more of the npat than 1% especially if you are factoring in the consumer products division, also I think you are referring to the media and networks division, not just ESPN. By as I said, the real value in this division is the content it produces, cable is just one way of distributing this content, and it's currently a very lucrative one, as this changes slowly overtime, the content will just be monitised in other ways, what every the primary distribution is in the future, disneys content will be there.

    The film pipeline and existing library, the parks and resorts, the consumer products etc are all great businesses, and so is their networks, networks are falling off a cliff, I wouldn't worry about it at all, there will be a transition, but people want Disney products no matter the platform.
     
  13. johnpendles

    johnpendles

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    Completely agree. Which is why i love Disney for a long term hold. Once they figure out the best distribution model for them, they'll do amazing things. As you said, the important thing is they have the content. Now is a great time to get in imo.
     
  14. Value Collector

    Value Collector Have courage, and be kind.

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    I am currently sitting in my hotel at the Disneyland resort over looking the park, having a Rum and resting my legs, both theme parks are full, the restruants, bars and shops are full, as I just checked box office mojo and the stars wars -force awakens has just become the highest grossing Disney movie of all time and it's only just begun its cinema run, to put that in perspective "frozen" is number 7 on the list.

    merchandise sales, etc are strong, content delivery is strong, shanghai disney is only a few months away, cash is flowing in and buy backs are soaking up stock, longterm this is a great hold for sure, I am very happy with my investment, lol :xyxthumbs
     
  15. peter2

    peter2

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    Disneys next earnings, due after close Feb 9th will be very interesting. I won't be reading them but I'll be watching how the market reacts to them. If a company that makes billions on a valuable movie franchise can't attract buyers then there's obviously something else that insto investors are worried about that is so bad they aren't buying yet (ESPN cord cutting?).

    The DIS chart must hold the support level ($90). I'm waiting for a higher low (>97 provided $90 holds) before I consider it worth buying.

    DIS0302.PNG
     
  16. Value Collector

    Value Collector Have courage, and be kind.

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    Disney has beaten expectations and released it's highest quarterly earnings in history.

    Star wars helped their studio division earn over $1Billion, consumer products and parks were also firing on all cylinders, and espn subscribers ticked up.

    All up it was a fantastic result, the recent share price weakness has helped the buyback scheme pick up a lot of cheaper stock too.

    [video]http://video.cnbc.com/gallery/?video=3000492780[/video]
     
  17. luutzu

    luutzu

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    Sure? Maybe Euro-Disney isn't doing too well. Would be worth a research trip this Xmas I reckon :D
     
  18. Value Collector

    Value Collector Have courage, and be kind.

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    Disney's film studio business is on fire, just weeks after the latest Star Wars film wound down after bringing in $850M in Profit, they have Released Zootopia which looks set to over take Frozen as the highest grossing animated film, and this is just the start of this years movie slate, with some big marvel films, the latest Alice movie and finding dory(the sequel to Nemo) being released and another star wars film at the end of the year.

    Things are looking pretty good.

    http://www.boxofficemojo.com/movies/?page=main&id=disney2016.htm
     
  19. Value Collector

    Value Collector Have courage, and be kind.

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    The Walt Disney Company has announced today it intents to Purchase a large portion of 21st Century fox's assets for $54 Billion in stock and the assumption of about $10Billion of net debt.

    Disney has committed to repurchased $20 Billion of shares in the next 24 months to reduce the dilution to existing share holders.

    The assets being purchased include Fox's
    Film Studios and TV studios (including library), Direct to consumer channels, multiple content franchises, distribution assets and more sports content.

    This deal gives Disney the content production capability to go ahead with its planned direct to consumer channels, while also giving it a much broader distribution network in Europe and some emerging markets.

    It also returns to Disney some of the marvel characters that were licensed to fox prior to disney buying marvel, the first 3 Star Wars movies with become disney owned, and disney now takes ownership of Avatar which prior to this deal it was leading the theme park rights to.

    https://ditm-twdc-us.storage.googleapis.com/DIS-Transaction-Announcement-12-14-17.pdf

     
  20. Value Collector

    Value Collector Have courage, and be kind.

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    Hahaha, and weirdly this take over deal was predicted by the Simpsons 19 years ago.

     
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