News Disney’s Q1 FY25 Earnings Results Webcast

[Moth]

All this PR talk sounds like they were well aware of when they expected EU to open up and didn't do anything to have ready year-of. Kinda disappointing they sat on their hands here.

 

[Jrb1979]

It’s going to end up like the cable bundle if they aren’t careful. Only so much you can push people until they pull the plug entirely.

It's already starting. People may still be going but they are cutting things to pay for LLs and tickets.

 

[MisterPenguin]

This is easily proved for anyone who goes to the parks. Prices in the parks are skyrocketing!

Or... the increase could be all DCL and WDW is indeed cratering.

We don't have the data for either scenario.

They together still profited almost $2B in one quarter.

 

[HauntedPirate]

All this PR talk sounds like they were well aware of when they expected EU to open up and didn't do anything to have ready year-of. Kinda disappointing they sat on their hands here.

Hugh seems to have mastered the art of saying 10,000 words without actually saying anything of substance.

 

[Dranth]

"Well, if you strip this and that and this other thing plus a few other things out, everything was up!"

Inflation is calculated, officially, the same way. And it's just as easy to see through the BS. Stop throwing but-if's into the numbers soup in an attempt to defend a position.

That is how one time costs on quarterlies work. That is why they are called out specifically because they are out of the ordinary and shouldn't have the same impact going forward.

Also, I wouldn't assume it just makes them look better. It shows how the company was impacted during the quarter in question but generally that also means they are expected to build on what they WOULD have made without those next year.

 

[MisterPenguin]

Hugh seems to have mastered the art of saying 10,000 words without actually saying anything of substance.

I agree.

I prefer Iger's rather direct "well, I'm not going to talk about that," rather than give vague non-answers.

 

[Disstevefan1]

They together still profited almost $2B in one quarter.

In my opinion, this is all that matters.

 

[Jrb1979]

Or... the increase could be all DCL and WDW is indeed cratering.

We don't have the data for either scenario.

They together still profited almost $2B in one quarter.

You're saying everything is fine. You don't see any issues with pushing guests to the tipping point

 

[TrainsOfDisney]

I wonder if some of the issues in Florida have to do with the resort being run the same as the smaller Disney resorts with 1 or 2 parks.

Even with how the parks have expanded and operated with no thought on where things should go and why.

 

[MisterPenguin]

You're saying everything is fine. You don't see any issues with pushing guests to the tipping point

I have not said anything about whether it's good or bad. I'm not saying everything is fine. I'm saying that the financials aren't as bad as some people make them out to be.

I'm explaining the data in opposition to those who manipulate it into falsehoods because they're angry and want to punish Disney by somehow making a company that doesn't read these forums (at least, I'm sure the c-suite group doesn't) by embarrassing them with this false data.

I'm acknowledging they're raising prices faster than inflation trying to find a tipping point. Do you want me to follow that sentence up with a dozen crying-face emojis?

I can't afford a Moderate hotel room let alone a deluxe. I couldn't afford to go on a Starcruiser trip. I can't afford LLPP. I can't afford a Disney cruise. I'm already priced out (and have been always) from Disney's more lux accommodations and perks. I have many complaints about modern Disney parks and I make that known to them. But I'm not about to make stuff up to make them look bad. There's plenty of true things I can say to make them look bad. So, why rely on falsehoods to make the point?

 

[Disstevefan1]

You're saying everything is fine. You don't see any issues with pushing guests to the tipping point

I hear you, but we are still waiting for that tipping point.

For every family Disney prices out, there are many more new families who don't know any better.

We must remember, its only the families who have been returning over time that see the differences.

 

[LSLS]

Or... the increase could be all DCL and WDW is indeed cratering.

We don't have the data for either scenario.

They together still profited almost $2B in one quarter.

It's interesting how little they have broken down the numbers in past year or so. Previously, they would give like WDW 3-4 bullet points, and same with DL to show their outlooks. Now its' like 3 bullets that doesn't break down even parks and cruises. I guess read into that as you will.

 

[Laketravis]

We must remember, its only the families who have been returning over time that see the differences.

I think it's become more about what those new first time families are actually seeing and experiencing on their first visit and the strategies they are forced to use in order to afford that visit.

For example, we just returned from five nights at USO.

This time we stayed at Dockside and it blows away any "Value" resort at WDW. Paid $85 a night with daily housekeeping. Many foreign visitors from across the pond, as well as lots of flag bearing line leaders (BTG's and Argentina).

Heavy crowds into the parks in the mornings that seemed to be spilling in predominately from the parking garages but they thinned out substantially by 1pm. We didn't do Express Pass and didn't have to. A bus was always waiting at the resort or at the parks and we never had to stand.

While completely anecdotal the following is based on conversations with employees, other guests, local business managers/owners in the area, and personal observation.

Offsite dining is trending at both WDW and USO - Citywalk and park table serves had few tables occupied. We didn't eat a single meal onsite or at the resort, instead either walked or took Uber to destinations along International and also Publix to stock the room since it had an actual refrigerator vs. "beverage cooler". Many others were doing the same, and the Instagram/Uber Eats deliveries to the lobby seemed continual. We observed the same at WDW on several visits between August to December.

Bars were ghost towns, most likely due to their high cost ($11.50 minimum for a single draft beer). More than one bartender I spoke with was trying/hoping to be transferred to a table serve wait position but said those were deteriorating as well (in terms of tip income). Several had worked at WDW but left for the very same reason.

Employees were surprisingly candid about high prices having a substantial impact on demand at both WDW and USO. There is an overall sense of concern.

I'm not delving into financials or profit margins or cost escalations or EBITDA - I'm looking at what I see to be emerging trends swelling among a static audience in response to ridiculous price increases for diminished offerings.

We plan on returning to Orlando at least two more times this year, but not WDW. Our 5 night/6 day trip last week cost us less than $1k (Seasonal park passes, points on Spirit, $85 a night at Dockside, the remainder on Uber and offsite meals/groceries). We don't plan on spending substantially more on subsequent trips. Many, many more are doing the same.

And no matter how it's spun - that's very bad news for parks.

 

[Disstevefan1]

I think it's become more about what those new first time families are actually seeing and experiencing on their first visit and the strategies they are forced to use in order to afford that visit.

For example, we just returned from five nights at USO.

This time we stayed at Dockside and it blows away any "Value" resort at WDW. Paid $85 a night with daily housekeeping. Many foreign visitors from across the pond, as well as lots of flag bearing line leaders (BTG's and Argentina).

Heavy crowds into the parks in the mornings that seemed to be spilling in predominately from the parking garages but they thinned out substantially by 1pm. We didn't do Express Pass and didn't have to. A bus was always waiting at the resort or at the parks and we never had to stand.

While completely anecdotal the following is based on conversations with employees, other guests, local business managers/owners in the area, and personal observation.

Offsite dining is trending at both WDW and USO - Citywalk and park table serves had few tables occupied. We didn't eat a single meal onsite or at the resort, instead either walked or took Uber to destinations along International and also Publix to stock the room since it had an actual refrigerator vs. "beverage cooler". Many others were doing the same, and the Instagram/Uber Eats deliveries to the lobby seemed continual. We observed the same at WDW on several visits between August to December.

Bars were ghost towns, most likely due to their high cost ($11.50 minimum for a single draft beer). More than one bartender I spoke with was trying/hoping to be transferred to a table serve wait position but said those were deteriorating as well (in terms of tip income). Several had worked at WDW but left for the very same reason.

Employees were surprisingly candid about high prices having a substantial impact on demand at both WDW and USO. There is an overall sense of concern.

I'm not delving into financials or profit margins or cost escalations or EBITDA - I'm looking at what I see to be emerging trends swelling among a static audience in response to ridiculous price increases for diminished offerings.

We plan on returning to Orlando at least two more times this year, but not WDW. Our 5 night/6 day trip last week cost us less than $1k (Seasonal park passes, points on Spirit, $85 a night at Dockside, the remainder on Uber and offsite meals/groceries). We don't plan on spending substantially more on subsequent trips. Many, many more are doing the same.

And no matter how it's spun - that's very bad news for parks.

I totally agree with you but the new families who only go to WDW that are new to WDW, have nothing to compare it to.

 

[Jrb1979]

I wonder if some of the issues in Florida have to do with the resort being run the same as the smaller Disney resorts with 1 or 2 parks.

Even with how the parks have expanded and operated with no thought on where things should go and why.

I think what's happening has a lot to do with the tipping point of the value resorts and trying to recoup that revenue from the deluxe resorts.

Instead of getting more money from the guests who used to stay value, they have lost some from those opting to stay off site or not going at all. Those who do stay on site have cut dining and some days from the parks to pay for the LLs and tickets.

 

[TrainsOfDisney]

For every family Disney prices out, there are many more new families who don't know any better.

i don’t think that works long term at WDW. I’m not totally sure it even works short term.

Most businesses know that it’s much better to retain existing customers than attract new ones. Pricing out existing customers is usually not a good business plan.

 

[HauntedPirate]

I have not said anything about whether it's good or bad. I'm not saying everything is fine. I'm saying that the financials aren't as bad as some people make them out to be.

I'm explaining the data in opposition to those who manipulate it into falsehoods because they're angry and want to punish Disney by somehow making a company that doesn't read these forums (at least, I'm sure the c-suite group doesn't) by embarrassing them with this false data.

I'm acknowledging they're raising prices faster than inflation trying to find a tipping point. Do you want me to follow that sentence up with a dozen crying-face emojis?

I can't afford a Moderate hotel room let alone a deluxe. I couldn't afford to go on a Starcruiser trip. I can't afford LLPP. I can't afford a Disney cruise. I'm already priced out (and have been always) from Disney's more lux accommodations and perks. I have many complaints about modern Disney parks and I make that known to them. But I'm not about to make stuff up to make them look bad. There's plenty of true things I can say to make them look bad. So, why rely on falsehoods to make the point?

Shill.

 

[Jrb1979]

i don’t think that works long term at WDW. I’m not totally sure it even works short term.

Most businesses know that it’s much better to retain existing customers than attract new ones. Pricing out existing customers is usually not a good business plan.

Agreed. Unfortunately it feels they don't see it that way. IMO they should be more concerned with EU than they show. One thing that Universal does better than Disney is the ease of visiting.

 

[MisterPenguin]

Disney Lowers Content Spending Estimate by $1B for This Year

As Wall Street parses its earnings beat and stagnate streaming subscriber growth, the company revises its spending expectation from $24 billion to $23 billion for produced and licensed content, as well as sports rights.

www.hollywoodreporter.com

 

[monothingie]

Domestic Park revenues are lumped in with cruise line revenues.

The revenue for Domestic Experience (domestic parks + DCL) went up 2%.

Oh, wait, let me put this in a way you'll understand....

The profit went down because of increased costs, but who had the increased costs? DL? WDW? DCL? We don't know.

So, we all know you want this to be referendum on WDW. But we don't have the data to convict.

BTW, International Park profits went up 28%.

Domestic Experiences revenue went up a meager 2%, likely due solely to LL becoming a more mature product at both domestic parks. OI went down because the added LL revenue was not enough cover for the larger losses, likely at WDW. There was no slowdown at DCL and DLR didn't seem to be underperforming, so what does that leave?