After a solid first quarter, with diluted EPS of $1.86, we look forward to the transformative year ahead, including the successful completion of our 21st Century Fox acquisition and the launch of our Disney+ streaming service. Building a robust direct-to-consumer business is our top priority, and we continue to invest in exceptional and innovative technology to drive our success in this space.This earnings report is the first under a strategic reorganization plan that took place last March. Previous divisions Parks and Resorts is now Parks, Experiences and Consumer Products. The remaining portion of the Consumer Products & Interactive Media division is now Direct-to-Consumer and International. Media Networks and Studio Entertainment remain. Overall Earnings Diluted earnings per share were down 36% from last year’s 1st quarter, from $2.91 to $1.86. Revenues for the company were flat compared to last last year, decreasing slightly from $15.351 billion to $15.303 billion; operating income decreased from $3.986 billion to $3.655 billion, an 8% drop.
- Parks, Experiences, and Consumer Products: 5% growth in revenues and 10% growth in operating income for the 1st quarter
- Direct-to-Consumer and International: 1% decrease in revenues and 223% decrease in operating income for the 1st quarter
- Media Networks: 7% growth in revenues and 7% growth in operating income for the 1st quarter
- Studio Entertainment: 27% decrease in revenues and 63% decrease in operating income for the 1st quarter
- Iger said the DTC (direct-to-consumer) remains their number one priority.
- When asked about what Disney has learned so far following the launch of ESPN+, Iger commented about the reliability of the BAMTech platform, handling millions of transactions and viewers, and is looking forward to seeing it work for Disney+ late this year.
- After being asked about how much money would be spent this year on marketing for Star Wars: Galaxy's Edge, Iger joked that he would just send out a tweet that it's open. He said of the new lands, "they're large, they're beautiful, and they're extremely innovative."
- Iger was asked about managing the popularity of the parks, and Iger commented that Disney is trying to manage the guest experience, using increased pricing to spread demand. He also said that they are being strategic about pricing.