Q4 2021 Walt Disney Co Earnings Call

November 10, 2021

And now I'd like to introduce your host for today's program Tammy Munsey, Vice President of Investor Relations. Please go ahead.

Good afternoon. It's my pleasure to welcome everyone to the Walt Disney Company fourth quarter 2021 earnings call.

My pleasure to welcome everyone to the Walt Disney Company fourth quarter 2021 earnings call.

Our press release was issued about 25 minutes ago and is available on our website at www.disney.com/investors.

Today's call is also being webcast and we will post a transcript of this call through our website. Joining me remotely today are Bob Chapek, Disney's Chief Executive Officer, and Christine McCarthy, Senior Executive Vice President and Chief Financial Officer.

Joining me remotely today are Bob Chapek, Disney's Chief Executive Officer, and Christine Mccarthy Senior Executive Vice President and Chief Financial Officer.

Following comments from Bob and Christine, we will of course be happy to take some of your questions. So with that, let me turn the call over to Bob to get started.

So with that let me turn the call over to Bob to get started.

Thanks, Tammy and good afternoon, everyone. As we close out the fourth quarter, I am pleased to say that has been a very productive year for the Walt Disney Company, as we've made great strides in reopening our business, while also taking meaningful and innovative steps to position ourselves for continued long term growth.

As we close out the fourth quarter I am pleased to say that has been a very productive year for the Walt Disney company as we've made great strides in reopening our business, while also taking meaningful and innovative steps.

Positioning ourselves for continued long term growth.

Despite the many ongoing challenges of the pandemic, we ended the quarter with an adjusted EPS of 37 cents, compared to a loss of 20 cents last year. Christine will go more in depth on the quarter and the coming year in her remarks.

<unk> to a loss of 20 last year.

Christine will go more in depth on the quarter and the coming year in her remarks.

Last quarter, we talked about our strategic priorities for the future. And as we head into fiscal '22, we remain keenly focused on advancing them to drive our continued growth.

And as we head into fiscal 'twenty, two we remain keenly focused on advancing them to drive our continued growth.

First and foremost telling the world's most original and enduring stories. Second, maximizing the synergy of our unique ecosystem to deepen consumers' connection to our characters and our stories. And lastly, using the power of our far-reaching platforms and new technologies to give consumers the best entertainment experience possible.

Second maximizing the synergy of our unique ecosystem to deepen consumers' connection to our characters and our stories and lastly, using the power of our far reaching platforms and new technologies to give consumers the best entertainment experience possible.

I'll briefly talk about how we are executing against these priorities in three key areas. Direct to consumer, sports and parks experiences and products.

Sports and parks experiences and products.

On the direct to consumer side, we are extremely pleased with the success of our portfolio of streaming services. Disney plus, ESPN plus and Hulu continue to perform incredibly well with 118.1 million, 17.1 million and 43.8 million subscribers, respectively for a total of 179 million subscriptions.

With $118 1 million.

$17 1 million and $43 8 million subscribers, respectively for a total of 179 million subscriptions.

To put this growth in perspective. In the past fiscal year alone, we have grown the total number of subscriptions across our DTC portfolio by 48% and Disney Plus subs in particular by 60%.

In the past fiscal year alone we have grown the total number of subscriptions across our DTC portfolio by 48% and Disney plus subs in particular by 60%.

I want to reiterate that we remain focused on managing our DTC business for the long term, not quarter to quarter. And we're confident we're on the right trajectory to achieve the guidance that we provided at last year's investors day. Reaching between 230, and 260 million paid Disney Plus subscribers globally by the end of the fiscal year, 2024, and with Disney Plus achieving profitability that same year.

<unk> between 230, and 260 million paid Disney plus subscribers globally by the end of fiscal year, 2024, and with Disney plus achieving profitability that same year.

This Friday, we will celebrate the two year anniversary of the launch of Disney plus with our first ever Disney plus day, a global company-wide celebration.

We are enormously proud of all that we've accomplished with the service and just the first two years. It has exceeded our wildest expectations and we are so excited for what's to come.

With this in mind, we have numerous activations planned across the entire company for Disney plus day, including the streaming premiere of Marvel's Shaanxi and the legend of the 10 rings, which has already surpassed $430 million at the global box office.

Other content coming to the service on Disney Plus day includes the highly anticipated Disney plus original movie Home Sweet Home Alone, Epic adventure jungle cruise and hilarious, new short from the Simpsons and the first five episodes of season two of the Fantastic National Geographic series the world According to Jeff Goldblum.

Epic adventure jungle cruise and hilarious, new short from the Simpsons and.

the first five episodes of season two of the Fantastic National Geographic series the world According to Jeff Goldblum.

And there is more great content in the pipeline. On the heels of Disney plus day will premier two amazing new original series Marvel's Hawkeye on November 24, and the latest Star Wars Adventure the book of Boba Fett on December 29.

On the heels of Disney plus day will Premier two amazing New original series Marvel's Hawkeye.

Number 24, and the latest Star Wars Adventure book of Boba Fett.

On December 29.

And of course, we're extremely excited about the Thanksgiving holiday weekend debut of the Beatles get back, Peter Jackson's highly anticipated three-part documentary.

Of the Beatles get back Peter Jackson's highly anticipated three part documentary.

Additionally, Marvel's Eternals has reached more than $161 million at the global box office in less than a week and Disney's <unk> console, which premieres in theaters on November 24th will come to the service after their exclusive theatrical runs.

In total, we are nearly doubling the amount of original content from our marquee brands Disney, Marvel, Pixar Star Wars, and National geographic coming to Disney Plus and FY '22 with the majority of our highly anticipated titles arriving July through September.

This represents the beginning of the surge of new content shared last December at our Investor Conference 2.0.

We recognize that the single most effective way to grow our streaming platforms worldwide is with great content. And we are singularly focused on making new high-quality entertainment, including local and regional content that we believe will resonate with audiences.

Of note, we have 340 plus local original titles in various stages of development and production for our DTC platforms over the next few years.

As you know, we announced at our last Investor Day that we expect our total content expense to be between $8 and $9 billion in fiscal 2024. We will now be increasing that investment further with the primary driver being more local and regional content.

We will now be increasing that investment further with the primary driver being more local and regional content.

We are expanding our global reach by introducing Disney plus in additional markets around the world. The service is now available throughout Japan, and we're thrilled to be launching at this Friday Disney Plus Day in South Korea, and Taiwan and in Hong Kong on November 16th.

The service is now available throughout Japan, and we're thrilled to be launching at this Friday Disney plus day.

In South Korea, and Taiwan and in Hong Kong on November 16th.

In just two short years, we are now in over 60 countries and more than 20 languages and next year, we plan to bring Disney plus to consumers and 50 plus additional countries, including in Central Eastern Europe, the Middle East and South Africa.

Middle East and South Africa.

Our goal is to more than double the number of countries we are currently into over 160 by fiscal year '23.

Turning to sports, we continue to build out ESPN plus with exclusive sports content that makes our DTC offering the perfect complement to the ESPN linear experience.

And with every new sports rights deal, we have considered both linear and DTC. In fact, all seven of the major deals we made in the last year and a half included a screaming component. Among them is our historic 10 year NFL rights agreement, which begins in 2023.

Included are screaming component.

Among them is our historic 10 year NFL rights agreement, which begins in 2023.

We also recently signed a five year deal with the league for Monday Night, wildcard game, which runs through 2025. Another example is our seven-year rights deal with the NHL, 75 of the leaf alive National games are and will be available exclusively on ESPN plus and Hulu. And ESPN plus is the sole home for more than 1000 out of market NHL games. By the way this is another reason that Disney bundle is proving highly appealing to consumers because live sports are a key element and a key differentiator of our Disney ecosystem.

Another example is our seven year rights deal with the NHL, 75% of the leaf alive National games are and will be available exclusively on ESPN plus in Hulu and ESPN plus is the sole home for more than 1000 out of market NHL games by the way.

this is another reason that Disney bundle is proving highly appealing to consumers because live sports are a key element and a key differentiator of our Disney ecosystem.

Our Disney ecosystem.

The 90% of the most-watched telecast last year were sports and they continued to perform extremely well. For example, the NHL opening night games on ESPN last month mark the highest viewed season-opening doubleheader on record with an increase of 54% over the 2019, 2020 season opening them later.

mark the highest viewed season-opening doubleheader on record with an increase of 54% over the 2019, 2020 season opening them later.

And we are particularly pleased with the NHL's direct to consumer performance on ESPN plus and Hulu. Likewise, the hugely popular UFC fresh off a strong card at Madison Square Garden last weekend continues to be a top performer per ESPN plus with six of the top UFC on ESPN plus pay per views coming in the past year.

Likewise, the hugely popular UFC fresh off a strong card at Madison Square Garden last weekend continues to be a top performer per ESPN plus with six of the top UFC on ESPN plus pay per views coming in the past year.

At the same time, we continued to expand our original sports programming with innovative broadcast like the hugely popular Monday night football with Peyton and Eli which airs on ESPN 2 and reached one 9 million viewers by its second week as well as the highly anticipated new shows like Man in the Arena, Tom Brady, the Multipart docu-series about the legendary quarterback premiering on ESPN plus on November 16.

new shows like Man in the Arena, Tom Brady, the Multipart docu-series about the legendary quarterback premiering on ESPN plus on November 16.

Along with a host of fantastic, new social and digital shows and podcasts. We're also moving towards a greater presence in online sports betting and given our reach and scale, we have the potential to partner with third parties in this space in a very meaningful way.

We're also moving towards a greater presence and online sports betting and given our reach and scale, we have the potential to partner with third parties in this space in a very meaningful way.

Suffice to say, we continue to see enormous opportunity in sports and all of this the rights deals are innovative programming and the flexibility achieved through our DTC business with ESPN plus subscribers increased by 66% over the past fiscal year alone.

All of this is a testament to the clear ambition we have from sports. One of the things that set the Walt Disney Company apart is our unique access to an incredible number of consumer touchpoints across our businesses. That of course includes our parks and resorts.

One of the things that sets the Walt Disney Company. Apart is our unique access to an incredible number of consumer touch points across our businesses.

That of course includes our parks and resorts.

Where we've achieved a number of important milestones since our last earnings call, including the first full quarter since the pandemic began with all of our parks around the world open to guests. Be it with some limits on capacity. And the return of our entire Disney cruise line.

Be it with some limits on capacity.

And the return of our entire Disney cruise line.

At the same time, the US government's approval of vaccines for five to 11-year-olds and the reopening of borders but fully vaccinated international travelers are both important steps towards the recovery of our business.

But what is perhaps most exciting is the work that we have done during the time our parks were closed to reengineer and reimagine the guest experience.

We have introduced a number of exciting new offerings that enable guests to create their best Disney days. In late August Disneyland resort launched Magic key, the new annual membership program that is resonating strongly with legacy annual pass holders, while also attracting new pass holders.

In late August Disneyland resort launch Magic key.

The new annual membership program that is resonating strongly with legacy annual pass holders, while also attracting new pass holders.

In fact, about 40% of current sales are to new pass holders. And most magically holders have purchased the top two tiers dream key and believe key, with dream key selling out in just two months.

And most magically holders have purchased the top two tiers dream key and believe key with dream key selling out in just two months.

We're also seeing a great response to the new annual pass holder program at Walt Disney World. A testament to the demand for our in-park experiences and the success of our yield management strategy.

Testament to the demand for our in park experiences and the success of our yield management strategy.

Walt Disney World rolled out its new multi-tiered full-service App Disney Genie, which allows guests to easily and efficiently navigate everything our parks has to offer in order to have the best experience possible. The response to the service in just its first month has been extremely positive.

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The majority of Genie and Genie plus users have said it improves their overall park experience with nearly one-third of park guests upgrading to Genie plus.

Making it possible for them to spend less time waiting in line and more time enjoying attractions, entertainment, dining and retail opportunities. We are very encouraged by what we're seeing and look forward to launching Disney Genie at Disneyland very soon.

We are very encouraged by what we're seeing and look forward to launching Disney Genia Disneyland.

Soon.

Alongside these transformative programs, we continue to invest in our parks and resorts themselves. We introduced a host of new attractions as part of Walt Disney world's 50th-anniversary celebration, which kicked off on October 1st. These include Remy Ratatouille adventure and [Epcot], which has quickly become one of the parks top attractions.

We introduced a host of new attractions as part of Walt Disney world's 50th anniversary celebration, which kicked off on October one.

These include Remy Ratatouille adventure and.

<unk>, which has quickly become one of the parks top attractions.

Our new themed restaurant [inaudible] and two new nighttime spectaculars. And there is lots more in store in the coming months, including the highly anticipated indoor cluster Guardians of the Galaxy, Cosmic rewind and the one of a kind Galactic star cruiser experience.

<unk>, two <unk> and two new nighttime spectacular.

And there is lots more in store in the coming months, including the highly anticipated into our cluster guardians of the galaxy Cosmic rewind and the one of a kind Galactic star cruiser experience.

As part of this immersive Tonight adventure, guests will become heroes of their own Star Wars stories. Reservations went on sale just three weeks ago and the first four months of voyages have virtually sold out for this premium experience.

Guests will become heroes of their own Star War stories.

Reservations went on sale just three weeks ago and the first four months of voyages have virtually sold out for this premium experience.

Disney Cruise line continues to be one of the highest rated guest experiences of any of our offerings.

As I said earlier all four of our ships are now sailing and we continue to see tremendous demand for the incredible experiences we offer at sea. We are thrilled to be launching a new ship the Disney Wish in June of 2022, and we'll welcome her sister ships to the fleet in 2024 and 2025.

We are thrilled to be launching a new ship the Disney wish in June of 2022, and we'll welcome her sister ships to the fleet in 2024 and 2025.

Combined these three vessels will help increase capacity and our footprint and a business that has historically generated a double-digit return on investment driven by a premium-priced well above the industry average.

Before leaving our parks and experiences, I want to mention the continued transformation of our consumer products business. We have almost completed the reduction of our physical footprint.

We have almost completed the reduction of our physical footprint.

Which will enable us to pivot our approach with a focus on our E-Commerce platform shop Disney and on more compelling retail partnerships, such as Disney store target, which will triple its locations by the end of the year.

In short, our parks around the globe now have more to offer guests than ever before with our new offerings, and we're making it even easier for them to have the best time imaginable. Tailored specifically to their individual needs and preferences in a way only Disney can.

Tailored specifically to their individual needs and preferences in a way only Disney can.

Our company is truly unique and that we have a significant presence in the physical world through our parks and resorts as well as media entertainment assets in the digital world.

And it is incredible to see how our use of emerging technology and insights gained through our a numerable consumer touch points is enabling us to transform the way people interact with and experience our stories and products in both worlds.

The Walt Disney Company has a long track record as an early adopter in the use of technology to enhance the entertainment experience.

Steamboat Willie, the first cartoon with synchronised sound. Our groundbreaking development and use of audio animatronics. We're the first to distribute downloaded content on the new Apple ipod back in 2005. Pixar has been a pioneer in computer animation. These are just a few examples.

Groundbreaking development and use of audio animatronics.

We're the first to distribute downloaded content on the new Apple ipod back in 2005 Pixar.

Pixar has been a pioneer in computer animation. These are just a few examples.

Suffice it to say, our efforts to date are merely a prolonged to a time when we'll be able to connect the physical and digital worlds even more closely. Allowing for storytelling without boundaries in our own Disney metaverse.

When we'll be able to connect the physical and digital worlds even more closely.

Allowing for storytelling without boundaries and our own Disney met averse.

And we look forward to creating unparalleled opportunities for consumers to experience everything Disney has to offer across our products and platforms wherever the consumer may be.

As we look ahead to this next frontier given our unique combination of brands, franchises, physical and digital experiences and global reach, we see limitless potential and that makes us as excited as ever about the Walt Disney Company's next 100 years.

With that, I'll turn it over to Christine and she'll talk in greater detail about the quarter and the year ahead.

Thank you, Bob and good afternoon, everyone. Excluding certain items, diluted earnings per share for the fourth fiscal quarter was 37 cents. An increase of 57 cents from the prior-year quarter. For the full fiscal 2021 year diluted EPS, excluding certain items was $2.29, or an increase of 27 cents versus the prior year.

Excluding certain items diluted earnings per share for the fourth fiscal quarter was 37.

An increase of 57 from the prior year quarter.

For the full fiscal 2021 year diluted EPS, excluding certain items was $2 29, or an increase of 27 versus the prior year.

As a reminder, these results take into account that fiscal 2020 was a 53 week year compared to our usual 52 week year in 2021. We estimate that the additional week in 2020 resulted in a benefit to pre-tax income of approximately $200 million.

We estimate that the additional week in 2020 resulted in a benefit to pre tax income of approximately $200 million.

Primarily at the media and entertainment distribution segment, creating an unfavorable comparison for fiscal year '21.

I'll now turn to our results in the quarter by segment, beginning with parks experiences and products, where fourth quarter operating income increased by $1.6 billion year over year.

A profitable fourth quarter at parks and experiences reflects our ongoing recovery from the COVID-19 pandemic. All of our sites are open for the entire quarter, although generally at reduced capacities.

All of our sites are open for the entire quarter, although generally at reduced capacities.

In the prior-year quarter, Shanghai Disney Resort was opened for the entire quarter, Walt Disney World Resort and Disneyland Paris were open for approximately 12 weeks.

Kong Disneyland resort was opened for approximately four weeks and Disneyland resort was closed for the entire quarter.

Attendance trends continued to strengthen at our domestic parks with Walt Disney World Q4 attendance up double-digits versus Q3. And Disneyland attendance continuing to strengthen significantly from its reopening in the third quarter.

Guest spending at our domestic parks also continued its strong trend with per caps in the fourth quarter up nearly 30% versus fiscal 2019. Our forward-looking demand pipeline for domestic gas at Walt Disney World and Disneyland resort remains strong demonstrating our brand strength as well as more normalized consumer behavior.

Our forward looking demand pipeline for domestic gas at Walt Disney World and Disneyland resort remains strong demonstrating our brand strength as well as more normalized consumer behavior.

Additionally, we are looking forward to the return of international attendance at our domestic parks and resorts. However, keep in mind that due to longer vacation planning lead times, we don't expect to see a substantial recovery in international attendance at our domestic parks until towards the end of fiscal 2022.

At our cruise line business, as Bob mentioned earlier, our entire fleet is returned to see with guest ratings are strong as pre-pandemic levels. Despite new health and safety protocols. While we expect social distancing restrictions on our ships to remain in place for at least the first half of fiscal 2022, booked occupancy on our ships for the second half of the year is already ahead of historical ranges at significantly higher pricing. And we are excited for the Disney Wish to set sail in June 2022, with the inaugural season already nearly 90% booked.

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occupancy on our ships for the second half of the year is already ahead of historical ranges at significantly higher pricing. And we are excited for the Disney Wish to set sail in June 2022, with the inaugural season already nearly 90% booked.

At consumer products, year over year operating results declined in the fourth quarter impacted by a tough comparison in our games business due to the prior year performance of two titles, Marvel's Avengers and twisted Wonderland.

Turning to our media and entertainment distribution segment, fourth-quarter operating income decreased by approximately $600 million versus the prior year, driven by lower results at linear networks direct to consumer and content sales licensing and others.

At linear networks, you may recall that we guided to a decline in Q4 operating income versus prior year. Operating results at linear networks did decrease year over year by approximately $200 million. Driven by a decrease in our domestic channels, partially offset by an improvement at our international channels. At our domestic channels, both broadcasting and cable operating income decreased in the fourth quarter versus the prior year.

Operating results at linear networks did decrease year over year by approximately $200 million driven.

Driven by a decrease in our domestic channels, partially offset by an improvement at our international channels. At our domestic channels, both broadcasting and cable operating income decreased in the fourth quarter versus the prior year.

At our domestic channels, both broadcasting and cable operating income decreased in the fourth quarter versus the prior year.

Lower results at broadcasting were driven by lower results at ADC and the owned television stations. At ABC, the decrease was primarily driven by higher marketing and programming and production costs, reflecting a higher number of series versus the prior year due to last year's production delays, as we noted in the guidance we gave last quarter. Partially offset by higher affiliate revenue.

At ABC. The decrease was primarily driven by higher marketing and programming and production costs, reflecting a higher number of series versus the prior year due to last year's production delays as we noted in the guidance we gave last quarter.

Partially offset by higher affiliate revenue.

The decrease at the owned TV stations was due to lower advertising revenue, reflecting comparisons to the 53rd week and stronger political advertising in the prior year.

At cable, the year over year decrease in operating income was primarily driven by three factors. One, lower affiliate revenue primarily driven by the prior year benefit of the 53rd week. Two, an increase in marketing costs for more titles premiering in the current quarter, which we also discussed last quarter.

quarter.

And finally, to a lesser extent lower advertising revenues. These impacts were partially offset by lower programming and production costs with generally reflect COVID-19 related timing impacts from the prior year. <unk> decreased for the NBA and MLB programming versus the prior year, partially offset by increased costs for college football games.

These impacts were partially offset by lower programming and production costs with generally reflect COVID-19 related timing impacts from the prior year.

<unk> decreased for the NBA and MLB programming versus the prior year, partially offset by increased costs for college football games.

Domestic linear networks advertising revenue decreased in Q4 versus the prior year driven by our cable networks and owned television stations, both of which were impacted by the prior year benefit of the 53rd week.

ESPN advertising revenue in the fourth quarter was comparable to the prior year, as higher rates were offset by the prior year benefit of the 53rd week.

First-quarter to date domestic cash advertising revenue at ESPN is currently pacing above the prior year, benefiting from increased ratings for college football and the NFL.

Total domestic affiliate revenue decreased by 6% in the quarter. This was driven by a benefit of 6 points of growth from higher rates, offset by a seven-point decline due to the 53rd-week adjustment and a three-point decline due to a decrease in subscribers. International channel results increased versus the prior year driven by lower programming and production costs, and higher advertising revenue. Partially offset by lower affiliate revenue. At direct to consumer, our fourth-quarter operating results decreased by $256 million year over year, driven by higher losses at Disney plus and ESPN Plus, partially offset by improved results at Hulu. At Disney Plus the higher lows versus the prior-year quarter was driven by higher programming, marketing and technology costs. These higher costs were partially offset by increases in subscription and premier access revenue. Higher subscription revenue reflects subscriber growth and increases in retail prices. And the increases in cost reflect the ongoing expansion of Disney Plus. Higher premier access revenue was driven by Black Widow and Jungle Cruise in Q4, compared to Mulan in the prior-year quarter. As Bob mentioned earlier, we ended the fourth quarter and the fiscal year with over 118 million global paid Disney plus subscribers, reflecting over 2 million net additions from Q3 in line with the subscriber guidance we gave in September.

This was driven by a benefit of six points of growth from higher rates.

Set by a seven point decline due to the 50 <unk> week adjustment and a three point decline due to a decrease in subscribers.

And did the fourth order and the fiscal year with over 118 million global paid Disney plus subscribers, reflecting over 2 million net additions from Q3 in line with the subscriber guidance we gave in September.

Subscribers across our domestic and core international markets, Excluding Disney plus Hot Star, grew by almost 4 million from Q3 to Q4. Disney plus hot stars subs decreased versus the prior quarter, accounting for about 37% of our total Disney plus paid subscriber base as of the end of the fourth quarter.

Disney plus hot stars subs decreased versus the prior quarter.

[noise] counted for about 37% of our total Disney plus paid subscriber base as of the end of the fourth quarter.

Disney Plus's global ARPU in the fourth quarter was $4.12, excluding Disney plus Hot Star It was $6.24 or an increase of about 12 cents versus the third quarter, continuing to benefit from recent price increases. At ESPN plus where we ended the fourth quarter with over 17 million subscribers versus nearly $15 million in Q3. The decrease in operating results year over year was driven by higher marketing and sports programming costs, partially offset by subscription revenue growth.

<unk> E S. P N plus where we ended the fourth quarter with over 17 million subscribers versus nearly $15 million in Q3. The decrease in operating results year over year was driven by higher marketing and sports programming costs, partially offset by subscription revenue growth.

And at Hulu, higher operating results in the fourth quarter versus the prior year were due to subscription revenue growth and higher advertising revenue, partially offset by increases in programming and to a lesser extent marketing costs.

Google ended the fourth quarter with 43.8 million paid subscribers inclusive of the Hulu live digital MVPD service. Hulu lives subscribers increased to 4 million from 3.7 million at the end of the third quarter.

Hulu lives subscribers increased to $4 million from three $7 million at the end of the third quarter.

Moving on to content sales, licensing and other. Results decreased in the fourth quarter versus the prior year to an operating loss of $65 million driven by lower theatrical and television ephod distribution results, both of which we noted as drivers and the guidance we gave during the last earnings call. While theatres have generally reopened, we are still experiencing a prolonged and gradual pace of recovery in this business.

[noise] earnings call.

Well theatres have generally reopened we are still experiencing a prolonged and gradual pace of recovery in this business.

Lower theatrical results were driven by higher operating losses for more titles in relief as well as higher marketing expenses for future releases.

Lower TV and VOD results were due to lower third party content licensing a film content driven by the ongoing impact of COVID, as well as our strategic shift towards the distribution on our DTC services. Partially offset by higher income from sales of episodic content due to lower right off versus the prior year.

Partially offset by higher income from sales of episodic content due to lower right off versus the prior year.

To conclude, as we progressed into fiscal 2022 and beyond there are a number of items I would like to mention.

Our capital expenditures in fiscal 2021 were $3.6 billion or approximately $400 million lower than our fiscal 2020 Capex a $4 billion.

Capex for the year came in lower than the previous guidance we gave primarily due to spending delays across the enterprise. For fiscal '22, we expect Capex to increase by $2.5 billion versus 2021. Driven by the delivery of the Disney Wish as well as other increased spending at Deepak incorporate.

For fiscal 22, we expect capex to increased by $2.5 billion versus 2021.

Given by the delivery of the Disney wish as well as other increased spending at Deepak incorporate.

At Deepak, we expect that per cap spending at our domestic parks in fiscal 2022 will continue to significantly exceed pre-pandemic levels. And we are particularly encouraged by the early response we are seeing to Genie at Walt Disney World.

We also expect that while we continue to pursue strong cost mitigation efforts, certain costs will be elevated and fiscal '22 versus pre-pandemic levels, including, for example, inflationary pressure on wages, costs related to new projects and initiatives such as Star Wars, Galaxies edge, Avengers campus, and the Epcot expansion and a ramp-up of expenses in support of our cruise ship expansion.

edge, Avengers campus, and the Epcot expansion and a ramp-up of expenses in support of our cruise ship expansion.

And as we think about fiscal '22 results at Pmed. There are a few things worth noting. First, we are excited about the ninth theatrical releases we are slated for the first quarter of fiscal '22.

However, we expect that the prolonged recovery we are seeing in the theatrical market paired with the marketing costs associated with each release may adversely impact theatrical operating results in the first quarter by approximately $300 million versus the prior-year quarter, which had only two releases.

At linear networks, we expect that first-quarter operating income will decrease by nearly $500 million versus the prior year. Reflecting factors, including higher contractual sports rights cost for college football and the NFL.

Reflecting factors, including higher contractual sports rights cost for college football and the NFL Jaime.

Timing of cricket expenses at Star India, and an adverse comparison to the prior year's political advertising revenue.

Finally, as it relates to our expectations for Disney plus. Looking at physical '22, we are thrilled about the quality of the content coming in the first three quarters of the year, but we will not yet be at our anticipated steady-state cadence of content releases.

Looking at physical 22, we are thrilled about the quality of the content coming in the first three quarters of the year, but we will not yet be at our anticipated steady state cadence of content releases Ah.

The fourth quarter will likely be more indicative of what our slate could look like once we have 10 pull content flowing steadily from all of our industry-leading creative engines.

Q4 will be the first time in Disney plus history that we plan to release original content throughout the quarter from Disney, Marvel, Star Wars, Pixar and that GO all in one quarter. This includes highly anticipated titles such as Ms Marvel, [Endor] and [Pinnochio.]

<unk> <unk> and Tokyo.

And as Bob mentioned earlier, we are also increasing our local content offerings in Asia, India, Europe, and Latin America in fiscal 2022 with the majority of those titles also releasing in the back part of the year.

As we've discussed before, we don't anticipate that sub growth will necessarily be linear from quarter to quarter. So putting this all together and also taking into consideration the timing of our plant international launches in 2022, we expect Disney plus subscriber net ads in the second half of fiscal 2022 will be meaningfully higher than the first half of the year.

In the second half of fiscal 2022 will be meaningfully higher than the first half of the year.

Additionally, we now expect that Disney plus will reach its peak year of losses in fiscal 2022, instead of in fiscal 2021, as better than expected revenue and lower content expenses due to production delays contributed to lower than expected losses in 2021.

As Bob mentioned, we are increasing our overall longterm content expense for Disney plus.

And we believe we are well-positioned to achieve the subscriber target of $230 million to $260 million by fiscal 2024 that we laid out at last year's Investor Day.

And we also remain confident in our expectation that Disney plus will achieve profitability in fiscal 2024.

And with that, I'll now turn the call back over to Tammy and we would be happy to take your questions.

Thanks, Christine. As we transition to the Q&A, let me note that since we're not physically together this afternoon, I'll do my best to moderate the Q&A by directing your questions to the appropriate executive. And with that Jonathan, we're ready for the first question.

As we transition to the Q&A, let me note that since we're not physically together. This afternoon I'll do my best to moderate the Q&A by directing your questions to the appropriate executive.

And with that Jonathan we're ready for the first question.

Certainly, our first question comes from the line of Ben Swinburne from Morgan Stanley. Your question please.

Thanks. Good afternoon, Bob and Christine. I think there's two areas where expectations have probably been you know out of line with reality this year. That's the way it on the stock, one of them is the Disney plus and that adds the other is probably more recently on parks margins. And you talk a lot about both of those in your prepared remarks, but maybe you could just spend a minute on both topics. On Disney plus, it sounds like we should think about net ads being higher in '23 and '24 than in '22 based on the search that I think you mentioned Bob on the programming sides. I'm wondering if you could help us with that I think that would help set the expectations in the right spot. And then on the parks front, Bob, you've talked a lot about parks margins when you get back to prior peak revenues being out or maybe even higher.

Bob <unk> Christine Yeah, I think there's two areas where expectations I've, probably been you know out of line with reality. This year. That's that's the way it on the stock one of them is the Disney plus and that adds the other is probably.

More recently on parks margins and you talk a lot about both of those in your prepared remarks, but maybe you could just spend a minute.

On both topics on Disney plus it sounds like we should think about net ads being a hiring 23 and 24 then in 22 based on the search that I think you mentioned Bob on the programming sides. I'm wondering if you could help us with that I think that would help set the expectations in the right spot and then on the.

Bob, you've talked a lot about parks margins when you get back to prior peak revenues being out or maybe even higher.

When you get back to prior peak revenues being out or maybe even higher.

And then before but obviously, there's also not a linear ramp on the margin front either. So I'm wondering if you could talk a little bit about how expensive come back into the business over the course of time as it recovers relative to revenue. So we make sure we're thinking about that business the right way in this sort of unusual circumstance coming out of a pandemic. Thank you.

Sure, Ben. Bob, why don't you start off with Disney plus net ads? And parks and file and then Christine maybe you can chime in on the expenses for parks. Okay. Thank you've Ben, on the Disney plus side. As Christine had said, we're really pleased with where we're sitting, but again, it's not going to be a linear right quarter to quarter. I think the recovery that you mentioned in terms of getting the growth rate back up to where it's been historically is really going to come in the third and fourth quarters.

Why don't you start off with Disney plus net ads and and parks and file and then Christine maybe you can chime in on the expenses.

For parks.

Okay. Thank you've been on the Disney plus side.

As Christine had said, we're real pleased with where we're city, but again, it's not going to be a linear right quarter to quarter I think the recovery that you mentioned in terms of getting the growth rate back up to where it's been historically is really going to come in the third in the fall.

The third quarter will be powered not necessarily by the content, but by the number of ads that we have in terms of markets Our number of markets that we're going to add will essentially double to more than 160 by FY '23. And that will propel us in the third quarter. And the fourth quarter will be more of a function of that finally, the dam will break in terms of the content that we announced last December that will be substantial and will lead to a cadence of content throughout the quarter that will look more like what we expect to see from an ongoing standpoint.

Fourth quarter will be more of a function of that finally, the dam will break in terms of the content that we announced last December that will be substantial and will lead to a cadence of content throughout the quarter that will look more like what we expect to see from an ongoing standpoint.

Obviously, we're only a year or two of the Disney plus launch and the hunger for content, for the service is extraordinary and when you have that happened at the same time that you have the pandemic and you have to shut down production, that's not a good combination. And yet we identified the need for the content way back exactly a year ago and have prepared a very strong cadence of content, which will now hit the pipeline in the second half of this year. In terms of the park situation. We are very bullish, we're seeing incredible 30% increases in [park apps]. And I think it was referenced in the earnings letter and so we're not only seeing strong demand, but it's at per caps that are much higher than we've traditionally seen. There was a reference and I'm not sure if everyone appreciates the gravity of this to the Genie plus success, one third of our guests at Walt Disneyworld are buying the Genie plus upgrade at $15 that's per guest, per day.

Of the Disney plus launch and the hunger.

Hunger for content for the service is extraordinary and when you have that that happened at the same time that you have the pandemic and you have to shut down production that that's not a good combination and yet we identified the need for the content way back exactly a year ago and have prepared a very.

cadence of content, which will now hit the pipeline in the second half of this year. In terms of the park situation. We are very bullish, we're seeing incredible 30% increases in [park apps]. And I think it was referenced in the earnings letter and so we're not only seeing strong demand,

but it's at per caps that are much higher than we've traditionally seen. There was a reference and I'm not sure if everyone appreciates the gravity of this to the Genie plus success, one third of our guests at Walt Disneyworld are buying the Genie plus upgrade at $15 that's per guest, per day.

Per day.

And that is a very very material increase for us and per caps, but also in margins.

So we're very bullish about both our Disney plus business. Both in terms reiterant of guidance that has been given today, but additionally in terms of where our parks business is going to go from a demand standpoint once we completely clear the pandemic, but also in terms of what we expect to be long lasting benefits in terms of yields. Christine.

terms of yields. Christine.

Sure. Thanks, Bob and thanks, Ben. I'm glad you asked a question on parks expenses and I know you know this business well, but just for the benefit of some others that may be newer to following Disney. Let's remember that the park's expenses are in three buckets, fixed which is quite substantial, semi-fixed and variable. So variable was where we were really able to make some adjustments during COVID-19, but the other fixed and semi-fixed buckets are ones that we have to carry on regardless of the operating environment that we found ourselves in. So as we come back online we've also done a lot of work on fundamentally changing some of the ways we have done business on both the revenue side and the cost side to optimize margins.

I'm glad you asked a question on parks expenses and I know you know this business well, but just for the benefit of of some others that may be newer to following Disney let's remember that the parks expenses are and three buckets fixed which is quite substantial semi fixed and variable. So variable was where we were really able.

to make some adjustments during COVID-19, but the other fixed and semi-fixed buckets are ones that we have to carry on regardless of the operating environment that we found ourselves in. So as we come back online we've also done a lot of work on fundamentally changing some of the ways

We have done business on both the revenue side and the cost side to optimize margins.

What you see this fourth quarter is an overall margin for the global business for deep help a little under 12% and that's well below our pre COVID-19 levels.

I've said this before and I'll say it again that I believe that we will get not only back too but have hi.

A high probability of exceeding those previous margin.

Margin levels in our parks because of some of the things we've done we're using date based pricing were strategically managing attendance.

We do have some promotional offers that are really meant to balance yield with demand, giving capacity on any given day or week during the year and on the cost efficiency side, we really made some improvements not only to the cost side, but also that improves the guest experience and those are things like the mobile food.

I'm ordering that we have a lot of people who've been to our parks since we reopened really enjoy that does contact list check ins at our hotel lots of people enjoy that as well we are virtual queues for selected attractions and where once again really looking at even physical park improvement.

That allow for better guests movement throughout the parks. So while these margins will remain impacted while we're still operating under capacity constraints again, we believe over the long term that these fundamental changes are gonna you aren't going to result in higher higher margins overall, so thanks for asking that question.

And the other thing I would say, as Bob mentioned Genie. Genie, we have launched in Walt Disneyworld, we have not yet launched it in Disneyland. And I think when we have that exposure to the Disneyland, people who come to visit Disneyland deep response will be as strong if not stronger.

<unk>, we have launched in Walt Disneyworld, we have not yet launched it in Disneyland and I think when we have that that exposure to the Disneyland people, who come to visit Disneyland deep response will be as strong if not stronger.

Thanks, Thank you both.

Next question please.

The next question comes from the line of electric quadratic from J P. Morgan Your question. Please.

Yeah, just two questions. If I may at first I R. K, one Hot Star is obviously lower than car Disney plus I'm curious you can elaborate on the opportunity to narrow that gap over time in desert Evaginate become proper contributor and it made me how much investment it sorted needed and a big picture.

And that property and then just my follow up question really is on them.

The your decision to kind of revert back to close if the asphalt releases at least for now it looks like even though they might be lost.

Initially I can <unk>.

Why do you also may feel that the better model with piracy at any color there. Thank you.

Why don't you start with explicit theatrical releases and then uhm Christine can talk about <unk>.

Okay. As you know we have preached flexibility in terms of making decisions on distribution is weak recover from the pandemic and in the mix of changing consumer behaviors and.

The extent to which we had a number of titles released going too theatrical will eventually go to Disney plus but what we're seeing is some recovery of the theatrical exhibition marketplace, which is a good thing by the way for not only Disney but also for the industry and <unk>.

Cause most of the franchises that we've had is the Walt Disney Company has been built through the theatrical exhibition channel of distribution at the same time, we're watching very very carefully different types of movies to see how the different components of the demographics of that market come back and we're watching very carefully our family films.

As they're released over the next couple of months to make sure that the market will come back to theatrical exhibition as the general Entertainment, let's say the films.

Films that appeal to a younger target audience have come back and so we're sticking with our plan of flexibility.

Because we're.

We're we're still unsure in terms of how old I'm going to react when family comes come back with a theatrical first window I should say that you'll notice that the films that we are putting into the marketplace and theatrical than our family films have a fairly short window at least in terms of any reference point to what history might've been.

And we're doing that so that we can get our films quicker to Disney plus and but at the same time see if the theatrical market can sort of kickback into full gear as we prime the pump with these films, but we're going to do what's best for our shows shareholders ultimately and.

You know, we don't announce our films that far in advance like we used to because we know that we're gonna time of flux and change still and well COVID-19 will be in the rearview mirror.

God willing I think changing consumer behavior or something that's gonna be more permanent and so we're reading that on a weekly basis and make our decisions going forward accordingly.

Thanks, Alexia for your question on a hot Star are pill, just just to make something very clear the Disney plus Hot Star is included in our overall Disney plus guidance that we reiterate to be profitable in 2024. So I just wanted to make sure that everyone understands.

But as it relates to <unk> specific later, there's been a lot of noise and the and the Indian market a lot of which has been around sports. So when you look at the are approved for hot star on the linked quarter basis from Q3 to queue for this year it actually decreased and that was a result.

Of lower per sub advertising revenue because there were fewer IPL matches this year.

In queue for there are only 18 and I believe the number was 29 ish in Q3. So you had a link to quarter production and games, therefore, lower subscriber advertising revenue and when we think about our pool overall theirs.

Several levers here there is a price value relationship over time high quality content and the content in India is it is really two things, it's not only the IPL, but other T sports like cricket beyond cricket. So you have things like the English Premier League and pro <unk>.

And also there's a big general entertainment component. We have all of our Disney plus content over there from all the different labels that we have Disney, Pixar, Marvel, Star Wars, and so on. But they also have over 18000 hours of original local programming that is produced every year. So once again, I think the upside potential is when all things are working, all cylinders are working and we'll be able to take price up as the market allows.

Content over there from all the different.

Labels that we have Disney Pixar Marvel Star Wars, and so on but they also have over 18000 hours of original local programming that is produced every year. So once again I think the upside potential is when all things are working I'll I'll set cylinders are working and we'll be able to take price up as the. Market allows.

Market allows.

Thank you. Thank you I like yeah.

Next question please.

Certainly our next question comes from the line of Michael Maintenance, then from Mafia may fulfill your question. Please.

His having I have to what is I appreciate your or your view that the cut in psych will get better.

What drives have grown up I really want to focus on the U S. What gives you confidence that that's what is the reason for this fall in growth.

Are there any cohorts any demographics that you're underpenetrated and perhaps a widening out of content is an issue versus just <unk> new content. That's one and then two is.

We have covered Disney a long time, but I've never seen this much inflation before I think any of US have in 30 years and I Wonder how you mitigate that inflation at what point did start becoming or meaningful drag on the margin recovery How're you have identified thanks.

Thank you Michael how 'bout, if you talk about that Disney plus some grass and the last name Christina can talk about inflation.

Oh, Michael and the first question was about sort of the kink of the supply chain. If you will of new content coming into the service and its impact on on our net suburb as you can probably suspect in a world of direct to consumer we have a lot of information a lot of data and we.

I have a pretty good idea of what the marginal impact of a particular title might be to our our service and we always say that library titles tend to increase engagement and minimize churn, but new titles, new content, whether there's movies or series add actually add new subs. And that is actually the reason why we're pretty confident that the increase in content flow towards the second half of fiscal '22 will actually lead to the types of results that we're we're anticipating. And so we've got some pretty good data that suggests that that is the case given our history, while we only have two years that two years is represented a number of titles. And you can start to build models as I'm sure you can understand every time that we have a title we have a pretty good idea of what the net impact that that's gonna be, both from our retention and to weigh in addition standpoint. So we're pretty confident that once we get to more of a normal content flow in the second half of the year that some of the vacuum that we've had over the last couple of months will not be the case. Christine, do you want to handle the? Oh and Charlie. There was also a question about cohorts widening. I'll handle that one as well.

<unk> add new subs and that is actually the reason why we're pretty confident that the increase in content flow towards the second half of fiscal twenty-two will actually lead to the types of results that we're we're anticipating and so we've got some pretty good data that suggests that that is the case given our.

History, while we only have two years that two years is represented a number of titles and you can start to build models as I'm sure you.

Can understand every time that we have a title we have a pretty good idea of what the net impact that that's gonna be both from our retention and to weigh in addition standpoint. So we're. Pretty confident that once we get to more of a normal content flow and the second half of the year that some of the vacuum that we've had over the last couple of months will not be the case Christine do you want to handle the Oh and Charlie Yeah. There was also a question about cohorts widening I'll I'll handle that one as well. The.

Pretty confident that once we get to more of a normal content flow and the second half of the year that some of the vacuum that we've had over the last couple of months will not be the case Christine do you want to handle the Oh and Charlie Yeah. There was also a question about cohorts widening I'll I'll handle that one as well. The.

The.

It is true that Disney plus is a four quadrate service. And as such, we need content that's going to be broad in order to appeal to each of those demographics. If there's an opportunity that we're working on right now it's sort of our preschool area. We believe that there is an opportunity for us to sort of assert ourselves in the direct to consumer way, the same way we did in the linear networks with the Disney channel. So that would be the biggest opportunity and I can tell you that in sitting through our creator of reviews. The new content that we've got, the new storytelling that we've got in the area of preschool is absolutely extraordinary and I think we're going to see a resurgence of sort of Disney in that area in terms of content, that's really going to become of the cultural Zeitgeist and then drive our subs amongst that particular cohort of potential sub ads for Disney plus. But it is true that being a four-quadrant service, we need to be abroad in our approach and that's why we fired up the production engines of our Fox teams that we have gotten in acquisitions Fox Searchlight, and just our general Disney General Entertainment team, making content, both for Hulu and for Disney plus as well as our service's internationally. Christine.

ourselves in the direct to consumer way, the same way we did in the linear networks with the Disney channel. So that would be the biggest opportunity and I can tell you that in sitting through our creator of reviews. The new content that we've got, the new storytelling that we've got in the area of preschool is absolutely extraordinary and I think we're going to see a resurgence of

sort of Disney in that area in terms of content, that's really going to become of the cultural Zeitgeist and then drive our subs amongst that particular cohort of potential sub ads for Disney plus. But it is true that being a four-quadrant service, we need to be abroad in our approach and that's why we fired up the

production engines of our Fox teams that we have gotten in acquisitions Fox Searchlight, and just our general Disney General Entertainment team, making content, both for Hulu and for Disney plus as well as our service's internationally.

Christine.

Thanks, Bob. Hi, Michael, I think you asked a question that's on the minds of every CFO and every senior management team of companies out there. Inflationary pressures or something we are all looking at and trying to assess and think about how do we manage through it. This is also one that.

Hi, Michael I think you asked.

Question, that's on the minds of every CFO and every senior management team of of companies out there inflationary pressures or something we are all looking at and trying to assess and think about how do we manage through it. This is also one that.

I just mentioned we've already experienced in some parts of our business. So over the past year or so we've talked about the increase in the price of content, you see the content that because of just the competition for talent, for everything that's involved in productions content costs have gone up.

Where we see a directly in our parks business is primarily through the hourly wage inflation that we've seen through contract renegotiations and our commitment to paying our park workers well.

And then we have things on the cost of good side and it's interesting I just last week, maybe it was just last week I was talking to our parks senior team about things, we could do there and there are lots of things that are worth talking about you know we can adjust suppliers. We can substitute products. We can cut portion size, which is probably good for some people who.

Waistlines, we can look at pricing where necessary, but we aren't gonna go just straight across and uhm increased prices, we're really going to try to get the algorithm right to to cut where we can and not necessarily do things. The same way as I mentioned, we're also using technology to <unk>.

Reduce some of our operating costs and that gives us a little bit of headroom also to absorb some inflation, but we're really trying to use use our heads here to come up with a way to kind of mitigate some of these challenges that we have but it's a great question and I'm I'm sure. It's one that you could ask every single company and your coverage universe. Thanks.

<unk>.

Thanks for thank you Michael.

Operator, we have time for one more question.

Certainly our final question for today, then comes from the line of Jessica right Arabic from Bank of America Securities. Your question. Please.

<unk> two of course first could you talk about the advertising outlook, there's a lot of moving pieces here between strong up upfront good sports ratings, but supply chain issues affecting some categories and within advertising. If you could talk a little bit more about Hulu advertising, what's going on there with your add lights.

<unk> first is pure premium subscription and then the second question is I know Bob mentioned in his prepared remarks.

Sports betting it can can you frame or give us any color on the opportunity.

Obviously, it's an area of growth is more states are proving it and it affects advertising it should because of the stations, but but how can you participate in a big away, while still protecting the E. S. P N brown.

Thank you Jessica why don't you address are expanding and Christine can talk about advertising.

Okay, we'll do Jessica <unk>, you're right. We do believe that sports betting is a very significant opportunity for the company and it's all driven by the consumer it's driven by the consumer, particularly the younger consumer that will replenish the sports fans overtime and their desire to have gambling.

As part of their sports experience, it's not necessarily a lead back it's a little bit of a leap forward type experienced that they're looking for and as we follow the consumer we necessarily have to seriously consider getting into gambling in a bigger and bigger way and ESPN is a perfect platform for this.

We have done substantial research in terms of the impact to not only to ESPN brand, but the Disney brand in terms of consumers changing perceptions of the acceptability of gambling and what we're finding is that there is a very significant installation gambling does not have the cachet now that it had say 10.

Or 20 years ago, and we have some concerns of the company about our ability to get in it without having a brand withdrawal, but I can tell you that given all the research that we've done recently that that is not the case.

It actually strengthens the brand of ESPN when you have a bidding component and it has no impact on the Disney brand. Therefore to go after that demographic opportunity plus the of course not insignificant revenue implications that is something that we're keenly interested in and are pursuing aggressive.

Really.

Okay I'll take the advertising question, Jessica Uhm, So overall B AD market is strong across our entire D med portfolio and the sports market is strong and it is really being driven by football at both the college and professional level NHL and.

M B a.

We are seeing some impact from supply chain issues impacting certain sales categories and the two that I would just call out our autos and technology and those are for obvious reasons that we all know about the chip shortage.

On Hulu, specifically, we're really pleased with the advertising demand we've seen for Hulu and we believe the overall addressable market in the U S market will continue to grow Hulu. We believe also has some real strategic advantages in this space, we've got a great slate of premium content and we've done.

<unk> the ability to use our data to offer that targeting advertising that advertisers are really desire and we also have a purpose built and unified AD platform I mentioned this last quarter, but that's really helped us grow and addressable advertising. So we'll see.

Continue to make investments in technologies that are going to allow us to continue to exploit this advertising that we see on Hulu and it's automating the sales process with programmatic an advertiser self service channels that we think are really going to continue to show good.

Growth. So we expect advertising to continue to be an important driver of Hulu revenues going forward. Thanks. Thank.

Yeah.

Thanks for the question.

I want to thank everyone for joining us today note that a reconciliation of non-GAAP measures that will refer to on this call. So equivalent GAAP measures can be on our investor relations classify it let.

Let me also remind you that certain statements on this call and cleaning financial estimates are statements about our plan expectations Elise our business prospects and other statements that are not historical in nature may constitute forward looking statements under the security slot we.

Make these statements on the basis of our views and assumptions regarding future events and business performance at the time, we make them and we do not undertake any obligation to update these statements.

Oh I'd like any statements are subject to a number of risks and uncertainties and actual results may differ materially from results expressed or implied in light of a variety of factors, including factors contained in our annual report on Form 10-K quarterly reports on farm 10-Q, and then our other filings with the <unk>.

Charities and Exchange Commission.

We want to thank everyone for joining us today I hope you have a good rest of the day.

Thank you for your participation at today's conference Vista conclude program you may now disconnect good day.

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Q4 2021 Walt Disney Co Earnings Call

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