Disney’s Fiscal Full Year and Q4 2019 Earnings Webcast

[Disney Analyst]

Bookings are weak for Winter 2020, hence the discounts for Winter 2020 are more generous than 2019.

Your narrative is being destroyed by many other posters on here. Sorry, the Disney is done narrative is fading away... early 2020 already at 5% year over year is good news for the company and for the parks.

 

[seascape]

I can't imagine they are happy with an 8% increase in the parks after spending a couple billion on SW:GE, even with only one attraction open (but all food and merchandise locations operating), but they'll definitely try to make it sound good no matter what.

Anyone want to bet that the phrase "an increase in guest spending due to higher ticket and food prices" makes it way into the report somewhere?

Parks and Resorts Profits were up 17% Universal's Parks EBITA was only up 0.9%. Who do you think were unhappy.

Anyway, WDW was about even with last year in attendance. Disneyland had lower attendance but Iger clearly said the profits from SWGE were better than has been reported due to merchandise and food sales. Attendance along does not make a land a success, for a business is all comes down to profits.

 

[mikejs78]

Parks and Resorts Profits were up 17% Universal's Parks EBITA was only up 0.9%. Who do you think were unhappy.

Anyway, WDW was about even with last year in attendance. Disneyland had lower attendance but Iger clearly said the profits from SWGE were better than has been reported due to merchandise and food sales. Attendance along does not make a land a success, for a business is all comes down to profits.

It's also worth mentioning that the 8% number would have been higher if not for the significant decline at HKDL due to the political situation over there.

 

[matt9112]

Your narrative is being destroyed by many other posters on here. Sorry, the Disney is done narrative is fading away... early 2020 already at 5% year over year is good news for the company and for the parks.

So bad news for anyone who cares because it reafirms there current track of lack luster decision making makes money. Greeeeat.

 

[peter11435]

It's also worth mentioning that the 8% number would have been higher if not for the significant decline at HKDL due to the political situation over there.

Not to mention a hurricane in Florida

 

[MisterPenguin]

I can't imagine they are happy with an 8% increase in the parks after spending a couple billion on SW:GE, even with only one attraction open (but all food and merchandise locations operating), but they'll definitely try to make it sound good no matter what.

That's +8% revenue over last year's last quarter, and +6% over the past year..

However it's +17% net profit over last year's last quarter, and +11% profit over the past year.

 

[Sir_Cliff]

That's +8% revenue over last year's last quarter, and +6% over the past year..

However it's +17% net profit over last year's last quarter, and +11% profit over the past year.

I don't know what they were expecting, but I wouldn't imagine these kinds of numbers are causing panic within Disney or from investors. Certainly not the kind of panic that would necessitate the CEO setting in motion an online smear campaign against the head of the Parks division.

Still, judging by the questions during the call, there is a sense that SWGE has not done as well as people expected and there is some concern over the aggressive pricing strategy. I can't imagine in any world they were imagining a decrease in attendance at DL and flat (albeit early) attendance at WDW. Hopefully there is more introspection within Disney than Iger outwardly expresses about both the nature of the product of SWGE and the pricing strategy. I'm also not convinced the downturn at HKDL has had that big an impact on the parks division overall; that resort has struggled with attendance and profitability since it opened.

 

[mikejs78]

I'm also not convinced the downturn at HKDL has had that big an impact on the parks division overall; that resort has struggled with attendance and profitability since it opened.

Well, the report said it did have an impact. Struggling is one thing, but a significant decline is another:

Operating income at our international parks and resorts was comparable to the prior-year quarter, as growth at Disneyland Paris and Shanghai Disney Resort was largely offset by a decrease at Hong Kong Disneyland Resort. {/QUOTE]

 

[peter11435]

I don't know what they were expecting, but I wouldn't imagine these kinds of numbers are causing panic within Disney or from investors. Certainly not the kind of panic that would necessitate the CEO setting in motion an online smear campaign against the head of the Parks division.

Still, judging by the questions during the call, there is a sense that SWGE has not done as well as people expected and there is some concern over the aggressive pricing strategy. I can't imagine in any world they were imagining a decrease in attendance at DL and flat (albeit early) attendance at WDW. Hopefully there is more introspection within Disney than Iger outwardly expresses about both the nature of the product of SWGE and the pricing strategy. I'm also not convinced the downturn at HKDL has had that big an impact on the parks division overall; that resort has struggled with attendance and profitability since it opened.

Disney says Hong Kong protests could wipe out $275 million in theme park profit

Hong Kong's political crisis is hitting the local Disneyland hard.

www.cnn.com

Hong Kong protests could cost Disneyland US$135 million in lost income

Loss-making theme park says it lost US$55 million between July and September, and predicts US$80 million shortfall in final quarter, as Walt Disney issues warning for coming financial year and expects US$275 million drop in income.

www.scmp.com

 

[Lilofan]

Disney says Hong Kong protests could wipe out $275 million in theme park profit

Hong Kong's political crisis is hitting the local Disneyland hard.

www.cnn.com

Hong Kong protests could cost Disneyland US$135 million in lost income

Loss-making theme park says it lost US$55 million between July and September, and predicts US$80 million shortfall in final quarter, as Walt Disney issues warning for coming financial year and expects US$275 million drop in income.

www.scmp.com

That is devastating for HKDL currently and moving forward. Not only with potential layoffs at the resort but may be a ripple effect in layoffs in other parts of the company to make up for the losses at HKDL.

 

[VaderTron]

The CFO stated in the 4th quarter, 85% room occupancy..... She then said for Q1 2020 (looking forward) current bookings are running at a 90% room occupancy.... thus the 5% increase.

Lots of people cancel their rooms. Can't imagine 90% looking ahead won't turn into the same 85%. But I could be wrong.

 

[VaderTron]

What I really wanted to hear in the report was AP sales numbers.

 

[Mickeyboof]

Would be amazing if someday the report read "Guest spending growth was primarily due to increase in popular attractions."

 

[Magenta Panther]

From Deadline.com: https://deadline.com/2019/11/disney...timates-on-eve-of-streaming-debut-1202780600/

Parks and Resorts, often a mainstay that keeps the company on track, experienced a wobbly quarter, with revenue up just 8%. Growth at Disneyland, the company said in its earnings release, was “primarily due to higher guest spending, partially offset by the cost of Star Wars: Galaxy’s Edge, which opened May 31.” The company also blamed “to a lesser extent, lower attendance.”

 

[Sirwalterraleigh]

That's +8% revenue over last year's last quarter, and +6% over the past year..

However it's +17% net profit over last year's last quarter, and +11% profit over the past year.

Horrible for all of us that actually go to parks...we consumers continue to fail each other

 

[VaderTron]

Horrible for all of us that actually go to parks...we consumers continue to fail each other

Not trying to start a fight, but I did want to point out that your action of going to the parks is a major way to continue to fail other consumers. I have put my money where my mouth is and stopped going to the parks and did not renew my AP in protest of the decline in value and increase in prices.

 

[bartholomr4]

Lots of people cancel their rooms. Can't imagine 90% looking ahead won't turn into the same 85%. But I could be wrong.

Their models are accurate. The trend usually holds. It could just as easily increase above 90% as it could drop below 90%.

 

[Sirwalterraleigh]

Not trying to start a fight, but I did want to point out that your action of going to the parks is a major way to continue to fail other consumers. I have put my money where my mouth is and stopped going to the parks and did not renew my AP in protest of the decline in value and increase in prices.

I’m not going...so that is “my part”

But I would like that not to be permanent. But I can’t support the pricing structure and egregious abuse by the supplier.

“Fun” should be fun...not suck eggs mentally

 

[tirian]

The CFO stated in the 4th quarter, 85% room occupancy..... She then said for Q1 2020 (looking forward) current bookings are running at a 90% room occupancy.... thus the 5% increase.

In the past, they’ve closed blocks of rooms for “refurbishment” to improve the occupancy percentages. I’m not talking about the real refurbs at Pop, Yacht and Beach, etc. I’m talking about closed rooms.

I’m not suggesting this is happening now—it’s probably not—but I do raise an eyebrow when any company reports percentages rather than solid numbers.

 

[Sirwalterraleigh]

In the past, they’ve closed blocks of rooms for “refurbishment” to improve the occupancy percentages.

I’m not suggesting this is happening now—it’s probably not—but I do raise an eyebrow when any company reports percentages rather than solid numbers.

Good point. Shutdowns for refurbs aren’t reported as “empty” they are ignored as “temporarily not existing”