Disney’s Q1 FY24 Earnings Results Webcast

[Sir_Cliff]

Did you listen to the call? The BOA analyst asked pointed questions about Parks, seemingly the same questions we would have asked. She received no answers.

BOA Analyst: You announced or for the first time I've heard you say this, that in parks 70% of the $60 billion in CapEx that you outlined over the next 10 years, I'm sorry, 70% of that will go to incremental capacity so to $40 billion in parks and attractions.

Can you give us color on timing and location?

There's been speculation you may open a fifth gate in Florida?

BOB: We're already hard at work at basically determining where we are going to place our new investments and what they will be."

That's it. That's all she got.

Wasn't that the only question about the parks, though?

In terms of the response, whatever their plans, was anyone really expecting any specific projects were going to be announced on this earnings call?

 

[Laketravis]

Wasn't that the only question about the parks, though?

Surely you jest.

That's not the point at all. It's that during the entire course of a 60 minute earnings call, Parks only received 55 seconds of mention and when asked specific questions about Parks, no answers were given.

That simply illustrates a lack of, well..... you know.

Whatever their plans, was anyone also really expecting any specific projects were going to be announced on this earnings call?

They certainly provided a wealth of information concerning projects in other sectors. In fact, we even had a drinking game involving Taylor Swift.

Ya shoulda been there. It was fun.

 

["El Gran Magnifico"]

Wonder if they are counting Tiana Splash Mountain and Country Bear changes with a beignet cart “expansion”

I for one hope they expand Swiss Family Treehouse. Maybe an extra tree fort with a zip line.

 

[Sir_Cliff]

Surely you jest.

That's not the point at all. It's that during the entire course of a 60 minute earnings call, Parks only received 55 seconds of mention and when asked specific questions about Parks, no answers were given.

That simply illustrates a lack of, well..... you know.



They certainly provided a wealth of information concerning projects in other sectors. In fact, we even had a drinking game involving Taylor Swift.

Ya shoulda been there. It was fun.

This is where I think you also have to look at what the analysts were asking about. In essence, Wall Street is not energised about Disney throwing money at the parks however smart that may be as a business strategy.

 

[Laketravis]

This is where I think you also have to look at what the analysts were asking about. In essence, Wall Street is not energised about Disney throwing money at the parks however smart that may be as a business strategy.

To be honest, I thought the proportion of questions asked about the parks (BOA) was healthy compared to the number of questions asked in total. It was certainly a much higher ratio than the information provided about parks to the total amount of information given.

 

[co10064]

It is certainly interesting.

California parks are seeing growth (Disneyland and Universal Hollywood both show gains), Florida parks seem to be declining (WDW and Universal Florida both show declines).

Is it a waiting game for next year? Are tourists skipping Florida simply due to Epic (which only really just had its splashy announcement, so the general public are really only now learning more about the new park), or are other... factors keeping people away?

IMO the only thing holding anyone back from a Disney vacation is the price... perhaps in combination with the increased planning and hassle that has come with Genie+, park reservations, etc.

I have seen no evidence that the general public has been swayed in any meaningful way to avoid Florida because of its politics or avoid Disney Parks for the company's politics/practices.

 

[duncedoof]

It's so over

 

[Sirwalterraleigh]

I love the use of scare quotes.

You understand that they can't just come out and make public statements to investors about future capital investments that are just bull, right?

They absolutely can. Are you new at this?

 

["El Gran Magnifico"]

It's so over

 

[JD80]

It's so over

Yeah, the call ended a few hours ago.

 

[monothingie]

Wonder what that NYTimes puff piece cost Disney.

Everything is OK. No reason to panic. Remain calm.

 

[CaptainAmerica]

It is certainly interesting.

California parks are seeing growth (Disneyland and Universal Hollywood both show gains), Florida parks seem to be declining (WDW and Universal Florida both show declines).

Is it a waiting game for next year? Are tourists skipping Florida simply due to Epic (which only really just had its splashy announcement, so the general public are really only now learning more about the new park), or are other... factors keeping people away?

Lol.

Lmao even.

 

[Sirwalterraleigh]

Lol.

Lmao even.

How so?

 

[Sirwalterraleigh]

Very glad I bought call options before earnings with my lizard brain. Thought Mr Iger would want to stave off Peltz.

That was the whole idea

I always hate these earnings calls because it’s just focused on all the streaming which we don’t care about.

You don’t want to hear cable Bob talk about how he’s gonna be “new cable Bob”?

With WDW attendance down though I think they will want to correct that so hopefully there will be expedited decisions and construction.

No.
They won’t change off an obviously failing strategy

 

[monothingie]

It is certainly interesting.

California parks are seeing growth (Disneyland and Universal Hollywood both show gains), Florida parks seem to be declining (WDW and Universal Florida both show declines).

Is it a waiting game for next year? Are tourists skipping Florida simply due to Epic (which only really just had its splashy announcement, so the general public are really only now learning more about the new park), or are other... factors keeping people away?

The Florida Parks (USO and WDW) have always had a symbiotic relationship because they depend on each other for guests. When one experiences slowness the other does as well and visa versa.

Disney may not have endeared itself to some percentage guests over the past 2 years for a variety of reasons and that has a greater impact on the region as a whole.

Disney has alway been the more dominant player acting as the attendance driver, mostly because of its size with USO benefiting from the residual of people leaving the Disney bubble.

With Epic, that dynamic may change. While I think there is some concern within Disney about it, I honestly believe they feel it will benefit them as well with the overall increase in visitors to the region. It’s an arrogant approach that could backfire if visitors now no longer want to leave the USO bubble.

It also means them seeding the top dog position in O town. (Whether they realize it or not, and they may be good with that!)

 

[Sirwalterraleigh]

“I’m not quite sure why there’s so much euphoria with this earnings report. They still have a struggling streaming service that lost subs and has no path to profitability“ -CNBC founder Tom Rogers

 

[PREMiERdrum]

What can they say?

"Our fundamental structure is now predicated on overcharging for admission, rooms, food, attraction access, and merchandise so grotesquely that it cannot be sustained. Future bookings for our onsite resorts are far below our already reduced expectations, and we are removing rooms from inventory for weeks or months at a time to 'right size" staffing. Don't forget your commemorative Magical Earnings Report Cupcake and your exclusive Genie+plus+ access to buy tickets to our brand new Disney Springs After Hours - all the excitement and mystery of a closed shopping center!"

 

[BrianLo]

What board you been hanging out on? Even around here the consensus is Bob must go…there’s just disagreement on how that manifests itself…

He does, but most certainly not to be replaced with Jay Rasulo with Perlmutter pulling the strings.

You’d even have me, the borderline optimist, calling for the heat death of the company.

 

[monothingie]

“I’m not quite sure why there’s so much euphoria with this earnings report. They still have a struggling streaming service that lost subs and has no path to profitability“ -CNBC founder Tom Rogers

They have the access media that will dutifully parrot the press releases and fawn over the spin.

Watching the CNBC interview again, Bob looked exhausted and run down.

 

[CaptainAmerica]

“I’m not quite sure why there’s so much euphoria with this earnings report. They still have a struggling streaming service that lost subs and has no path to profitability“ -CNBC founder Tom Rogers

Tom Rogers appears to be an idiot. Streaming will be profitable by September, and the sub decline was expected this quarter as they took a significant price increase.