Disney CEO Bob Chapek sends congratulatory memo to Cast Members after sharing financial results for the second quarter

By WDWMAGIC Staff · Thursday May 12, 2022 8:46am ET · "The Walt Disney Company"
Disney CEO Bob Chapek sends congratulatory memo to Cast Members after sharing financial results for the second quarter
Bob Chapek tells cast, "I could not be prouder of the Cast Members and Imagineers at Parks, Experiences and Products"

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Bob Chapek

Bob ChapekBob ChapekBob Iger left, Bob Chapek right.

Following yesterday's Walt Disney Company quarterly earnings report that saw significant achievements in financial performance at the theme parks, Disney CEO Bob Chapek congratulated the cast in a memo.

Disney Parks, Experiences and Products revenues for the quarter increased to $6.7 billion compared to $3.2 billion in the prior-year quarter. Segment operating results increased by $2.2 billion to income of $1.8 billion compared to a loss of $0.4 billion in the prior-year quarter

Bob Chapek
Bob Chapek

Team,

One of the best parts of my job is getting to talk about the incredible work you all do. Today, I had the opportunity to do just that as Christine McCarthy and I shared your achievements and our financial results for the second quarter. While the numbers were fantastic (you can read our press release to learn more about our performance), they don’t tell the full story.

As always, Storytelling Excellence was on full display—and I can’t think of any other company that can match the depth, breadth, and quality of our content. Our Studios earned six Academy Awards at this year’s ceremony broadcast on ABC, including Best Animated Feature for Walt Disney Animation Studios’ Encanto and Best Documentary Feature for Onyx Collective and Searchlight Pictures’ Summer of Soul. Pixar’s Turning Red became the fastest title to reach 200 million hours viewed on Disney+. We brought Marvel action to the service with Moon Knight, and added a new chapter to the Star Wars story with The Book of Boba Fett. And while not in the second quarter, I have to call out the performance of Marvel’s Doctor Strange in the Multiverse of Madness, which opened this weekend to an incredible $450 million at the global box office—that’s the 11th-highest domestic opening weekend of all time!

Our General Entertainment team’s success was wide ranging—from buzzy new series like Pam & Tommy and The Dropout on Hulu, to the long-awaited return of FX’s Atlanta, to landmark achievements like the renewal of Grey’s Anatomy on ABC for a record-breaking 19th season. On the sports side, fans are certainly back and fully engaged with their favorite teams and events. ESPN viewership was up double digits this quarter, with success continuing through the NBA and NHL playoffs. In fact opening weekend of the NBA playoffs was the most viewed since 2014.

I could not be prouder of the Cast Members and Imagineers at Parks, Experiences and Products. Despite continuing COVID-related challenges, they posted phenomenal results as they make magical memories for Guests around the world. A highlight this past quarter was the opening of our most immersive experience yet: Star Wars: Galactic Starcruiser at Walt Disney World. It’s true next generation storytelling that puts fans right in the middle of their own Star Wars adventure. Guests think it’s fantastic, and ratings are in-line with our most-loved experiences. I got the chance to celebrate the return of Disneyland’s nighttime spectaculars with Cast Members just a few weeks ago, and it was truly magical to see the beloved Main Street Electrical Parade “ignite the night” once again.

I want to close by thanking all those who met with me and our leadership team during our listening tour. Your feedback is important, your personal stories are powerful, and your dedication to our company is inspiring. As I said during those sessions, we are committed to using this moment as an opportunity to become an even better company, and soon you will be hearing more about our progress as we find more ways to support our employees and the communities in which we live and work.

Looking ahead, there is a lot to be excited about—fantastic new stories, incredible experiences, and the opportunity to create an even larger, more connected, and magical Disney universe for families and fans around the world.

I am excited to be on this journey with you!

Bob

 

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MisterPenguinMay 12, 2022
↩ replying to HauntedPirate
By the numbers, the stock price should go up. But, there are different segments of investors who aren't biting. One group are investors who only (or mostly) want stocks that pay dividends. And Disney isn't doing that again, yet. If Disney would go back to that, its stocks would definitely go up.

Based on all questions about streaming, it now seems investors are getting worried about the loss-leading strategy for streaming -- even tho Disney's streamers seem to be poised to become number one after Netflix's stumble. "Tell me more about the ad tier!" "Tell me how you're spending money for content!" "Tell me about when you're abandoning linear/cable for good." "Tell me you'll reach your benchmark goals."

I've never seen a more streaming-centric quarterly Q&A session before.
Sir_CliffMay 12, 2022
↩ replying to danlb_2000
Indeed. The message from the response to these results is that Disney should be putting all its resources into getting its streaming strategy right. The only concern investors have about the parks is how Disney plans to keep growing profits, which is exactly the sort of feedback that pushes them to reduce spending and find new ways to squeeze money out of customers. This is why I don't know why parks fans would be clapping their hands at this kind of feedback; it only encourages Disney to use the parks as profit engines to fund other business ventures that are more interesting to investors, such as streaming is right now.
SirwalterraleighMay 12, 2022
↩ replying to HauntedPirate
They missed their targets, can’t blame
Covid anymore, and…what was the other thing?…

Oh, right…wall street and Hollywood WANT bob out.

How deep do we need to go?
kalel8145May 12, 2022
↩ replying to Trauma
He just likes to see his own condescending posts. Must be close some kind of milestone for post count.
SirwalterraleighMay 12, 2022
Streaming has never shown the “major profits” that every parent company has promised and day traders have gone batty speculating on. Maybe that’s the real problem?

Not just Disney…any of them.
SirwalterraleighMay 12, 2022
↩ replying to kalel8145
You’re off on that. Enjoy the packing 👍🏻
kalel8145May 12, 2022
I have actually decided to put him on ignore after he, not in so many words, wanted me to have a bad trip. Then walked it back after I called him on it by saying oh no he hopes I have a great time. 🙄 My forum experience has been better.
SirwalterraleighMay 12, 2022
↩ replying to kalel8145
That wasn’t what i said. But you have every right to. Farewell. Have a GOOD trip (as I said in something speculative about the big picture…which is exactly what it was)
doctornickMay 12, 2022
↩ replying to MisterPenguin
I think it actually makes sense to ask those questions. I’ve been wondering for a while what is exactly I’d the endgame for streaming and what a profitable sustainable streaming service looks like. I know they are still in the build out phase and adding more countries to the service but I would like to understand more what exactly a mature streaming service is supposed to look like because Netflix seems to be there now and everyone freaks out when lose a small percentage of subs.
TraumaMay 12, 2022
↩ replying to kalel8145
Nah Walter is a good guy. He just has a different style of posting that I think actually brings plenty of positives to the forum. He is what you would call a “acquired taste” and I rather enjoy when he pokes fun at me.
JoeCamelMay 12, 2022
↩ replying to doctornick
I hope they are not trying to model Netflix for D+. The cost of feeding the content beast is so high the average person finds it a strain to justify the cost as a stand alone, maybe a bundle of streaming options but I think general consolidation is in the future with D+ positioning for that rather than trying to become a mature service at this time.
They can be the big dog if it all goes well but that is far from certain this early in the development cycle
kalel8145May 12, 2022
↩ replying to Trauma
It's all well and good until you start wishing bad on people just so you can say I told you so.
SirwalterraleighMay 12, 2022
↩ replying to Trauma
Wow…you’re defending me?

Shields down, Scotty? 🤪

I’m sure I came off wrong…my fault.

The context was I saw you say “I’m going in June!” About 30 times on a variety of threads and the PML and that is obviously excitement. No problem there at all.

And it crossed yesterday into the longterm business strategy and how to gain/foster repeat business on the whole.

That’s a tough thing to settle in my mind.

You may be right - it may not matter. My sandpaper coated suggestion was sometimes you need to step back if we’re talking about the business and what the BAD managers are doing.

Opinions vary. It won’t be the last mistake I make.
seascapeMay 12, 2022
Disney streaming profitability is being under estimated. The company as a whole says they will spend 32 billion over the next year on content. That includes for streaming, TV, sports rights and movies. That is 2.67 billion a month. Their monthly revenue based on the numbers they reported are 280,608,000 for domestic Disney+, 274,320,000 for international Disney+ less Disney+Hotstar, 38,076,000 for Disney+Hotstar. That totals 593,004,000 a month from Disney+. Hulu brings in 527,678,000 a month from stand alone Hulu and 363,957,000 from Hulu with live TV. ESPN+ brings in 105,479,000 a month. Combined Disney is bringing in 1,537,118,000 a month from streaming and is still growing at a good pace but it is bringing in 57.64% of the total content costs Disney is spending and given the price increases and subscriber growth, I expect streaming to cover the entire content costs for the company in 2024.
CaptainAmericaMay 12, 2022
↩ replying to doctornick
Netflix was screwed when they lost The Office and Parks and Rec. Profitability doesn't come from expensive new content that people watch once when it's new and then never touch again. Profitability comes from the catalogue that people will stick on in the background while they fold laundry. For Disney, that's the WDAS back catalogue, the Pixar back catalogue, Star Wars, the MCU, and the Simpsons.

WandaVision drives subs, but five years from now when I introduce my daughter to the MCU, we're starting with Iron Man.
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