News Disney’s Q2 FY25 Earnings Results Webcast

[MisterPenguin]

Bob [paraphrasing]:

$30B on Domestic Parks in the short time.​

​

Because... Parks have a big return on investment. Record levels. ​

​

Expansion is about capacity to stop limiting attendance due to limited capacity. ​

​

So... a 5th Gate? Not in the short term. Not ruled out. Investment in current parks a priority. ​

 

[mikejs78]

The optics don't match (ADR's, crowd levels, wait times, etc).

@lentesta has mentioned that there's been a change in LL allocation recently - I wonder if that's having a perception effect because it's improving standby wait times...

 

[Mr. Sullivan]

Very unexpected…and not the picture that has been painted on the ground by P&R…with the exception of DCL

Just saying

And I know I’m not alone because I’m not getting nearly the blowback I usually would when I question the C-Suite

Very “subdued”…which hints that expectations Weren’t there.

I think the very simply answer here is that those who expected this to be a bad quarter just got it wrong. It's really that easy.

Just like movies most assume will be huge flops can turn into a huge hits.

 

[lentesta]

@lentesta has mentioned that there's been a change in LL allocation recently - I wonder if that's having a perception effect because it's improving standby wait times...

It's absolutely helping.

 

[Laketravis]

It's absolutely helping.

Do you know how park hopping effects attendance numbers? If I park hop three parks in one day, am I one attendee or three?

 

[DarrenD]

Do you know how park hopping effects attendance numbers? If I park hop three parks in one day, am I one attendee or three?

I'm fairly certain it would've counted for all 3 when I worked in the parks.

In the eyes of TWDC, there's no real difference if you just show up at 5 PM or if you went from MK and then to your hotel or whatever, then to another park at 5. You're still *in* that park on that day, and you *were* in MK earlier in the day. It helps if you think about each park as an individual place; they all do their own forecasting and budgets.

 

[peter11435]

I'm fairly certain it would've counted for all 3 when I worked in the parks.

In the eyes of TWDC, there's no real difference if you just show up at 5 PM or if you went from MK and then to your hotel or whatever, then to another park at 5. You're still *in* that park on that day, and you *were* in MK earlier in the day. It helps if you think about each park as an individual place; they all do their own forecasting and budgets.

For attendance purposes they only count the first park entered. Crossovers park hoping from other parks are counted separately.

 

[HauntedPirate]

Sorry these calls now happen while I am still asleep, catch me up...

Disney had another decent quarter, and the theme parks are up, with a good outlook ahead?

Meanwhile Comcast announced their theme parks were down the last few quarters? So people are still going to Disney, and just avoiding Universal until Epic opens? When will Disney feel the crushing defeat by Universal many on here suggested would take place?

No one ever said "crushing defeat". You're making things up. But Disney itself?

“As we built our plans, we anticipated some small impact for Epic Universe opening, and we effectively hedged in the guidance we provided.” - Disney CFO Hugh Johnston, Feb 5, 2025

 

[Sirwalterraleigh]

I think the very simply answer here is that those who expected this to be a bad quarter just got it wrong. It's really that easy.

Just like movies most assume will be huge flops can turn into a huge hits.

Very rare when it’s out of the blue…with a park announcement? Very convenient for an underperforming company…which everyone but the motley fool has identified.

There are very few “surprises” in today’s world.

 

[Sirwalterraleigh]

No one ever said "crushing defeat". You're making things up. But Disney itself?

“As we built our plans, we anticipated some small impact for Epic Universe opening, and we effectively hedged in the guidance we provided.” - Disney CFO Hugh Johnston, Feb 5, 2025

No no…we’re pretending that these things didn’t happen now…cause that’s what we like to do to be proud of dvc…or something?

 

[HauntedPirate]

All Stars Sports was hopping last night.

The arguably-most popular All Star resort with over 1900 rooms was hopping? Say it ain't so!

 

[Chi84]

Very rare when it’s out of the blue…with a park announcement? Very convenient for an underperforming company…which everyone but the motley fool has identified.

There are very few “surprises” in today’s world.

But there were posters who were wrong.

 

[Sirwalterraleigh]

All Stars Sports was hopping last night.

…wait a minute…they put a dvc in there?!?

 

[Sirwalterraleigh]

But there were posters who were wrong.

There always are. If you look at the start of this thread…there really was no prognostications. Could definitely have happened In others though?

There were a few slight quips yesterdays I guess?

Just surprise…is the the thing. One of the reasons I asked Len…the best expert on crowds we have around here…if it made sense to him today?

 

[Advisable Joseph]

Bob [paraphrasing]:

Because... Parks have a big return on investment. Record levels. ...​

​

Expansion is about capacity to stop limiting attendance ...​

This seems to argue for massive expansion at Disney World, to me.

So... a 5th Gate? Not in the short term. Not ruled out. Investment in current parks a priority. ​

Around 32:30 or 32:45ish, Iger says no short-term eighth location, counting Abu Dhabi, so he's not confirming or denying anything about a fifth gate at WDW if that is the comment you are referring to.

---

In addition:

At the very end, Iger mentioned Cars, but he didn't specify Frontierland: a small kernel of hope there.​

​

Also, someone here wondered if the $30 billion domestic would include cruises:​

Major new initiatives like our $30 billion+ investment in our domestic theme parks will add some 10,000 new jobs in Florida and California.​

From DISNEY’S IMPACT ON THE AMERICAN ECONOMY (from this April, I believe)​

 

[Disney Analyst]

No one ever said "crushing defeat". You're making things up. But Disney itself?

“As we built our plans, we anticipated some small impact for Epic Universe opening, and we effectively hedged in the guidance we provided.” - Disney CFO Hugh Johnston, Feb 5, 2025

Sooo many people on social media, have said Disney was in trouble, that Epic was going to level them, heck there have been threads on here dedicated to how Epic would impact them, with many claiming Disney would see major declines in attendance.

Of course, I always thought that was hyperbolic, and that if anything, it would only help Disney, if Epic was pulling in new tourists, or more guests to the market, which would be Comcast's hope.

I guess we just need to wait a few more weeks to see what happens in Orlando.

 

[GhostHost1000]

Sooo many people on social media, have said Disney was in trouble, that Epic was going to level them, heck there have been threads on here dedicated to how Epic would impact them, with many claiming Disney would see major declines in attendance.

Of course, I always thought that was hyperbolic, and that if anything, it would only help Disney, if Epic was pulling in new tourists, or more guests to the market, which would be Comcast's hope.

I guess we just need to wait a few more weeks to see what happens in Orlando.

I know Disney has said they expect Epic to benefit Disney but I suspect many families can’t afford both Universal and Disney vacations when many can’t afford Disney alone.

I guess it’s possible some will go stay at Disney and take a day at Epic but….time will tell

 

[Disney Analyst]

I know Disney has said they expect Epic to benefit Disney but I suspect many families can’t afford both Universal and Disney vacations when many can’t afford Disney alone.

I guess it’s possible some will go stay at Disney and take a day at Epic but….time will tell

I still think this is how it plays out:

Magic Kingdom, Epcot, DHS, IOA static or have small increases.

DAK and USF most likely to see an impact from EPIC, and may be the parks people will choose to cut out of a trip, if they have to.

This is why I think they've timed a lot of the DAK work to happen now, they know it's likely to see a slow down.

 

[Sirwalterraleigh]

This seems to argue for massive expansion at Disney World, to me.

Around 32:30 or 32:45ish, Iger says no short-term eighth location, counting Abu Dhabi, so he's not confirming or denying anything about a fifth gate at WDW if that is the comment you are referring to.

---

In addition:

At the very end, Iger mentioned Cars, but he didn't specify Frontierland: a small kernel of hope there.​

​

Also, someone here wondered if the $30 billion domestic would include cruises:​

From DISNEY’S IMPACT ON THE AMERICAN ECONOMY (from this April, I believe)​

Just to be clear…there will never be a “fifth gate” in Florida.

 

[Sirwalterraleigh]

I still think this is how it plays out:

Magic Kingdom, Epcot, DHS, IOA static or have small increases.

DAK and USF most likely to see an impact from EPIC, and may be the parks people will choose to cut out of a trip, if they have to.

This is why I think they've timed a lot of the DAK work to happen now, they know it's likely to see a slow down.

I agree with you…except there really isn’t “a lot” going on at dak.

Propertywide there is still very little on the whole…other than dvc at breakneck pace

I think universal studios would suffer first…just being cut out…with smaller cascade park cannibalization trickling down from here.

Still a very weird climate/time in the world.

Disney had a big Wall Street gain today…but the Fed is gonna gobble it back up with their predictions this afternoon. We just don’t know where this will be in days, weeks, months?