News Disney’s Q2 FY25 Earnings Results Webcast

[Sirwalterraleigh]

It's not a conspiracy. And I apologize if that's a tone I'm using, which is not my intention.

It refers to the fact that, should domestic or global economic growth slow, vacations will be one of the first things to be cut. Since TWDC requires only a $200 deposit for a trip, it is relatively easy to cancel. Those types of numbers would be reflected in later reports.

I want TWDC to do well; they are a massive contributor to Florida's economy, directly and indirectly.

Vacations are ALWAYS the first thing to go.

You know where I learned that? Working at a funky building with a sundial on it in central florida

 

[Kamikaze]

It's not a conspiracy. And I apologize if that's a tone I'm using, which is not my intention.

It refers to the fact that, should domestic or global economic growth slow, vacations will be one of the first things to be cut. Since TWDC requires only a $200 deposit for a trip, it is relatively easy to cancel. Those types of numbers would be reflected in later reports.

I want TWDC to do well; they are a massive contributor to Florida's economy, directly and indirectly.

Thats fair, but do international reservations follow the same rules? I have no idea.

And I would figure they've already noticed the downtick in the international guests in that booking increase.

 

[Disstevefan1]

 

[el_super]

That doesn't make much sense to me especially if consumer sentiment is shifting in Universal's favour, but shall see.

Maybe consumer sentiment isn't shifting at all? People still want to go to Disney.

 

[el_super]

Hang on, I was assured the pricing increase was always about lowering attendance for a better experience. Now crowds are rising and they are offering crazy discounts as well? Are you telling me the price raises were in fact not about getting less people in the parks?

This is, specifically, for Q2. You can have a historically high-attendance February, and a significantly reduced July at the same actual gate number. So the guest experience is pretty comparable between the two, with the only notable difference being that the guests in July will pay significantly more for it out of convenience.

What they are doing seems to be working.

 

[Sirwalterraleigh]

Maybe consumer sentiment isn't shifting at all? People still want to go to Disney.

Was “sentiment” the problem? It’s likely money…that’s not improving for really anyone

 

[Sirwalterraleigh]

Hang on, I was assured the pricing increase was always about lowering attendance for a better experience. Now crowds are rising and they are offering crazy discounts as well? Are you telling me the price raises were in fact not about getting less people in the parks?

Well that definitely was a lie. From day 1. I hoped we put this one to bed like a drunken baby

 

[LSLS]

That wouldn't explain the drop also in Hollywood but I guess we will ultimately see in time.

We now have multiple quarters of declining attendance at Universal Orlando that people on here keep putting down to people holding off on visiting the resort due to Epic's opening while WDW has been holding up ok given the general economic climate. This suggests that attendance at both resorts is pretty self-contained as the people delaying their Orlando vacations don't seem to be showing up in lower numbers for WDW. That doesn't make much sense to me especially if consumer sentiment is shifting in Universal's favour, but shall see.

Eh, Disney has seen that same thing happen when they have been in the process of opening major lands which is why I think a lot think this could be the case with an entire new park at Universal. That said, I've been on the band wagon for a bit now that Universal is overshooting what it can charge. What we could be seeing is that it's possible there is just not really much of an overlap between people who go to Disney and people who are going to Universal, so a new Universal Park really isn't going to have any effect (positive or negative) on Disney. But probably way too early to make that leap.

 

[Lilofan]

You mean when the largest banks got caught opening fake accounts with personal data to create false earnings in the hundreds of billions? And basically had to pay what amounted to a parking ticket for it?

The point is that the idea there are “watchdogs” and regulations in place to keep the greed brokers in line is kinda fairy tale. It’s been replacement by the “confidence game”. I’m worth what I think I am…now buy some!

Disney isn’t doing anything like that…but are they moving line items up and down and around again to try and paint a good spin and create the idea they’re getting “bigger”?

You bet your @$$…remember their stock still sucks…even if it gets a couple buck nudge today. It’s a bad investment. And you got a ceo that has lost his fastball

Dubai…not exactly Walt’s dream there

Walt’s dream and reality was also

We don’t make movies to make money. We make money to make more movies.

 

[Batman'sParents]

Eh, Disney has seen that same thing happen when they have been in the process of opening major lands which is why I think a lot think this could be the case with an entire new park at Universal. That said, I've been on the band wagon for a bit now that Universal is overshooting what it can charge. What we could be seeing is that it's possible there is just not really much of an overlap between people who go to Disney and people who are going to Universal, so a new Universal Park really isn't going to have any effect (positive or negative) on Disney. But probably way too early to make that leap.

This is a big point—like it or not, Disney has trained people to expect a major price tag when visiting their parks. So no one's really shocked when the Polynesian runs $800 a night or when a single-day ticket to Magic Kingdom hits $200.


Universal, on the other hand, is seen as the cheaper alternative. It offers a similar (but different) kind of experience, with more affordable hotels and park tickets, and you even get free Express Passes if you stay at one of their nicer resorts.

Even with Epic Universe opening , Universal is still more budget-friendly than Disney. But if they want to start charging Disney-level prices, they’ll need to build up Epic Universe as a premium experience.

 

[lentesta]

Perfect Person to ask:

You’re there…you live it more than anyone…

Do these numbers make sense?

They don't to me, given consumer sentiment and the drop in international visitors. But this isn't the first time I've been wrong.

I'm surprised by the future bookings more than anything. Maybe the parks are such a huge draw that macroeconomic and international issues just don't matter.

 

[Dranth]

We had one travel agent everyone took at his word about bookings. Did we have any others?

What insiders were doom casting anything?

There was more than one and for the current reported quarter I don't remember any of those folks doom casting, just that bookings looked down. Even Len posted he was surprised by the numbers.

I am hardly negative on everything they do and was expecting down to flat given the concern over economic conditions and what we were hearing from folks who aren't normally in the "everything is on fire and failing" crowd. I have ZERO problem being wrong about it but it is certainly an interesting result.

 

[Tha Realest]

They don't to me, given consumer sentiment and the drop in international visitors. But this isn't the first time I've been wrong.

I'm surprised by the future bookings more than anything. Maybe the parks are such a huge draw that macroeconomic and international issues just don't matter.

This also seems like a strong indicator, especially since major airlines have had to pare back their profit/revenue guidance for later this year.

 

[WoundedDreamer]

Honestly, the idea that Disney’s Florida parks are doing well jives with what Comcast said. They argued that they’re opening Epic Universe in a time of market strength. Disney’s numbers seem to support that framing. Comcast’s latest quarter was negatively impacted by the L.A. forest fires and opening expenses for Epic Universe, but they were still bullish on their Florida parks.

It seems both Disney and Universal should have a good year!

 

[Nevermore525]

Also nothing has really changed drastically for domestic consumers as the tariffs haven’t been felt just yet. Could change on a single post or in a few weeks once the cargo that’s being offloaded now hits the shelves.

 

[Laketravis]

They don't to me, given consumer sentiment and the drop in international visitors. But this isn't the first time I've been wrong.

I'm surprised by the future bookings more than anything. Maybe the parks are such a huge draw that macroeconomic and international issues just don't matter.

I'm not surprised at the increase in revenue and per-guest spending - those LL money trees are bearing fruit.

But increases in park attendance? The optics don't match (ADR's, crowd levels, wait times, etc). I've often wondered if I park hop to three parks in one day, am I counted as three visitors? Does LL return enough in time savings that there's a significant increase in park hopping?

I've no doubt future on-site bookings have increased due to current promotional savings. But given WDW's generous cancellation policy it remains to be seen how many of those turn out to be placeholders.

 

[Sirwalterraleigh]

WDW is such a major draw that there is tons of people to backfill that demand.

They have drops…post plaque lockdown…without a recession…when travel has been overall up

So explain that. It’s the elephant in the room. It’s never happened and it should never happen

 

[Sirwalterraleigh]

I'm not surprised at the increase in revenue and per-guest spending - those LL money trees are bearing fruit.

But increases in park attendance? The optics don't match (ADR's, crowd levels, wait times, etc). I've often wondered if I park hop to three parks in one day, am I counted as three visitors? Does LL return enough in time savings that there's a significant increase in park hopping?

I've no doubt future on-site bookings have increased due to current promotional savings. But given WDW's generous cancellation policy it remains to be seen how many of those turn out to be placeholders.

We seem to be in near universal agreement on this.

Doesn’t mean they can’t “make it work”…but it just doesn’t match.

Now I definitely have to head down there this month…I can post the pictures of empty concourses (for the third year in a row) and be told it’s “mobbed” by the podcasters on Long Island

It’s becoming an annual thang

 

[Disstevefan1]

I hate when its mobbed, its always annoyingly crowded, but when its mobbed you ask yourself, "why am I here"
Not sure when we will be there next, but I am looking forward to annoyingly crowded and not mobbed.

 

[Batman'sParents]

They don't to me, given consumer sentiment and the drop in international visitors. But this isn't the first time I've been wrong.

I'm surprised by the future bookings more than anything. Maybe the parks are such a huge draw that macroeconomic and international issues just don't matter.

WDW is also drawing in a more affluent clientele compared to years past. They may not be affected as much by specific economic issues.