Disney parks and resorts is up in revenue $4.30B vs expected $4.27B.
http://www.cnbc.com/2017/05/09/disney-earnings-q2-2017.html
http://www.cnbc.com/2017/05/09/disney-earnings-q2-2017.html
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Disney Parks Revenue up
- Thread starter KrazyKat
- Start date
Rteetz
Well-Known Member
Highlights from the report
Revenue is $13.34 Billion
Parks and Resorts profit grew 20% compared to last year
Growth comes mainly from Disney Studios and Parks and Resorts
Consumer Products and Interactive Media is down 11%
Disneyland Shanghai was profitable for the first time since opening.
Bob Iger believes new packages such as DirecTV Now will help ESPN.
Iger reiterates ESPN direct to consumer product by the end of the year.
Iger is confident the board will find the right person to replace him.
Iger has missed the first two Economic Advisory councils with Trump but hopes to be at the next one.
Shanghai Disneyland will hit 10 million visitors within days.
They are looking at expanding the Shanghai Disney Resort
Decrease in consumer products was due to slow down in Star Wars and Frozen merchandise.
80% of people who access ESPN do it from a mobile device.
Disney has 11 Franchises that generate over $1 billion in retail sales.
Disney expects Shanghai slow down in Q3 due to change in seasons.
Disney offered promotions to drive park attendance, due to timing of Spring Break and end of 60th anniversary at Disneyland.
NBA deal will have a major impact on next quarter due to costs.
Disney expects to invest more in the parks.
Disney expects to repurchase $9-10 billion in shares.
Bob Iger highlights new cruise ships and unannounced hotel plans as avenues for growth.
Iger says that another growth opportunity for the parks is adding more intellectual property to them.
Iger says Disney does not have current plans to take main ESPN product to direct to consumer but sees it eventually happening.
They expect ESPN to continue to be a multi-channel product for the foreseeable future.
Iger wants to secure Disney's film future, figure out ESPN, and continue to grow Disney's leadership team in his remaining time.
Revenue is $13.34 Billion
Parks and Resorts profit grew 20% compared to last year
Growth comes mainly from Disney Studios and Parks and Resorts
Consumer Products and Interactive Media is down 11%
Disneyland Shanghai was profitable for the first time since opening.
Bob Iger believes new packages such as DirecTV Now will help ESPN.
Iger reiterates ESPN direct to consumer product by the end of the year.
Iger is confident the board will find the right person to replace him.
Iger has missed the first two Economic Advisory councils with Trump but hopes to be at the next one.
Shanghai Disneyland will hit 10 million visitors within days.
They are looking at expanding the Shanghai Disney Resort
Decrease in consumer products was due to slow down in Star Wars and Frozen merchandise.
80% of people who access ESPN do it from a mobile device.
Disney has 11 Franchises that generate over $1 billion in retail sales.
Disney expects Shanghai slow down in Q3 due to change in seasons.
Disney offered promotions to drive park attendance, due to timing of Spring Break and end of 60th anniversary at Disneyland.
NBA deal will have a major impact on next quarter due to costs.
Disney expects to invest more in the parks.
Disney expects to repurchase $9-10 billion in shares.
Bob Iger highlights new cruise ships and unannounced hotel plans as avenues for growth.
Iger says that another growth opportunity for the parks is adding more intellectual property to them.
Iger says Disney does not have current plans to take main ESPN product to direct to consumer but sees it eventually happening.
They expect ESPN to continue to be a multi-channel product for the foreseeable future.
Iger wants to secure Disney's film future, figure out ESPN, and continue to grow Disney's leadership team in his remaining time.
jt04
Well-Known Member
Pandora and Star Wars Land beg to differ.
networkpro
Well-Known Member
- In the Parks
- Yes
1. Blinkies
Kamikaze
Well-Known Member
It only has to sustain itself for another year. Then they can have a bad year up until SWL, which will bring in huge increases no matter what.
IanDLBZF
Well-Known Member
On that note, per this I think there was an attendance increase during this year vs last year...
Source: https://ditm-twdc-us.storage.googleapis.com/q2-fy17-earnings.pdf
AndyS2992
Well-Known Member
You can't keep cutting costs forever, you'll end up with nothing is the point I'm making.
jt04
Well-Known Member
I think many are being too cynical. It is more of a reorganization that is going on financially to add efficiencies by prioritizing how and where limited dollars are allocated. Lots of '3 steps forward and 1 step back' going on but profound progress is beginning to show. Just compare DAK of 2012 to DAK of 2017 as an example. This trend is only gaining momentum.
If not for the albatross that is ESPN, the stock would be in the 130's by now. Going to be an interesting year. Disney has got a slate of blockbuster movies coming. Parks seem strong and the opening of Pandora will drive some demand.
I remember a debate I had on these boards with a fella who was convinced by the future longevity possessed by network TV. Times they are a changing. Soon traditional media outlets will be in the same position as retail powerhouses like Sears, Macy's, and JC Penney.
I don't know how to feel about the Apple rumors. But they do have a gazillion dollars laying around and they need content pretty badly. Disney's market cap is at about $175 Billion so Apple can afford it. Not sure I'd like an Apple owned Disney World though.
I remember a debate I had on these boards with a fella who was convinced by the future longevity possessed by network TV. Times they are a changing. Soon traditional media outlets will be in the same position as retail powerhouses like Sears, Macy's, and JC Penney.
I don't know how to feel about the Apple rumors. But they do have a gazillion dollars laying around and they need content pretty badly. Disney's market cap is at about $175 Billion so Apple can afford it. Not sure I'd like an Apple owned Disney World though.
flynnibus
Premium Member
ESPN isn't a reseller... it's a producer, content creator AND broadcaster. What did Macy's create again??
The whole bundling thing is Disney's past sins coming to a head... the years of bullying providers and packaging wasn't going to last forever.
It's amazing how people seem to forget... a broadcast doesn't make itself.
You apparently didn't read Craig Moffet's report that absolutely crushed media stock last week. It caused DIS to drop over 2% before the earnings were released today.
ESPN is a content creator. But 5 years ago the competition (think Twitter and Amazon) weren't streaming NFL games. They are now.
Hulu, Google (via YouTube), Netflix, Amazon, Apple and others are all making major investments in content creation. Like I told you a year ago. And a year ago you simply dismissed that statement. Your pithy response was "never gonna happen". Well it is happening and its happening right now.
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RustySpork
Oscar Mayer Memer
Just to be clear here they're limited by earnings of only 4,000,000,000 dollars per quarter. 750,000,000 of these limited earnings is from parks and resorts. Of course this is revenue and not gross profit.
WDW1974
Well-Known Member
These are the type of posts that make me wonder ... why ... just why.
ESPN is an albatross. Sure. Yup.
TV is going away. Total streaming on demand on iPhones is the future. ... And no one wants to shop in a brick and mortar shopping location. People hate malls and lifestyle centers (like Disney just built in the swamps). They want Amazon drones to deliver everything.
BTW, if Sears (especially), J.C. Penny and Macy's cease to exist, it won't be because time passed them by. It will be because of management not evolving and investing and venture capitalists (the Sears guy is the worst) who let profitable stores fall into disrepair, so he could close them and sell the real estate. But I digressed.
Yup. Apple needs to buy Disney. Every Millennial fanboi's wet dream with absolutely no thought given beyond they love both BRANDS.
WDW1974
Well-Known Member
Oh goodie. Someone with a brain and perspective in this discussion. I can leave now and start packing for my MAGICal sabbatical. Thanks! And Good Luck!
ESPN has negatively impacted DIS stock. So yes it has been an albatross. An albatross that has led to a substantial amount of layoffs. And probably more to come. ESPN has under performed and you can make excuses for it, you can be in denial about it...but it is fact.
Sears, Penney, Macy's failures have very little to do with stores falling into disrepair. Faltering Malls all over the country aren't faltering because they haven't been kept up or because of bad management. They are faltering because of the online retailer, the convenience, the better price point, and because of ever changing consumer habits. It's the same reason you can't get into your car anymore and drive to your neighborhood Blockbuster. It's evolution and you need to come to grips with that.
I've stated I wouldn't be a big proponent of Apple acquiring Disney (If you read my post). But to ignore the possibility, considering it has been talked about for the past several months on every financial media outlet and substantial financial blog, is laughable.
Not a millennial by the way. Just a GenX'er who doesn't fight change every step of the way. You can either embrace change and adapt to it, or go back to posting about your "inside connections" and break the news about what color they are painting the rooms at the CBR refurb.