News Disney’s Q1 FY25 Earnings Results Webcast

[Sirwalterraleigh]

The experiences division posted a 5% decline in domestic theme park operating income for the quarter, at $1.98 billion.

That can't be good in a quarter that's supposed to be their biggest one with the holiday season

Atta boy…

You picked the two doomsday warning sirens there:

“Decline”

And

“Q1”


Not good and there is zero way to spin that.
A reminder: both per capita spending AND more importantly domestic travel was very high in 2024. There is no excuse to stuggle in the two compounds. None.

Now there was a huge storm…which typically causes a 3 day - and I’m not joking - disruption to revenue in Orlando. And the following week typically makes up for a huge chunk of it

So I reject that strawman like a blowtorch would

 

[Dranth]

The experiences division posted a 5% decline in domestic theme park operating income for the quarter, at $1.98 billion.

That can't be good in a quarter that's supposed to be their biggest one with the holiday season

It depends on why which is the reason these reports are important to investors.

In this case they saw a 5% decline and they called out two main reasons why it was down.

1. The hurricane. I know people scoff at this but between all four parks being closed and a canceled cruise itinerary this could account for a percentage point on its own.
2. Higher costs because this last quarter included launching the Treasure which did not sail until the end of December. I don't know how long it takes Disney but NCL reported it takes close to 60 days to launch a new ship, so Disney likely spent a good bit of money over most of the last quarter getting the ship ready to sail.

Get rid of those two and they are likely down slightly (one or two percent) if not even.

 

[Jrb1979]

It depends on why which is the reason these reports are important to investors.

In this case they saw a 5% decline and they called out two main reasons why it was down.

1. The hurricane. I know people scoff at this but between all four parks being closed and a canceled cruise itinerary this could account for a percentage point on its own.
2. Higher costs because this last quarter included launching the Treasure which did not sail until the end of December. I don't know how long it takes Disney but NCL reported it takes close to 60 days to launch a new ship, so Disney likely spent a good bit of money over most of the last quarter getting the ship ready to sail.

Get rid of those two and they are likely down slightly (one or two percent) if not even.

That's fair and makes it a little better. At the same time Q1 with all the holiday after hour events should be up IMO.

 

[JoeCamel]

Is there some reason people stopped reporting on DIS stocks?

View attachment 842588

Ohhh, 4 pm paints a different picture.....

 

[Dranth]

That's fair and makes it a little better. At the same time Q1 with all the holiday after hour events should be up IMO.

I get it but remember, they are comparing Q1 of this fiscal year to Q1 of last fiscal year so the comparison also has all the those same holidays and after hour events.

 

[Tha Realest]

I get it but remember, they are comparing Q1 of this fiscal year to Q1 of last fiscal year so the comparison also has all the those same holidays and after hour events.

And there were more party nights and they had higher ticket prices. Looks like there’s not much more blood in that stone.

 

[Andrew C]

Ohhh, 4 pm paints a different picture.....

Same price today as it was a decade ago. Not bad.

 

[Tha Realest]

Same price today as it was a decade ago. Not bad.

Hey, it’s one of the few Disney price points that hasn’t gone up over time.

 

[JoeCamel]

Same price today as it was a decade ago. Not bad.

Gonna get me sum

 

[Sirwalterraleigh]

It depends on why which is the reason these reports are important to investors.

In this case they saw a 5% decline and they called out two main reasons why it was down.

1. The hurricane. I know people scoff at this but between all four parks being closed and a canceled cruise itinerary this could account for a percentage point on its own.
2. Higher costs because this last quarter included launching the Treasure which did not sail until the end of December. I don't know how long it takes Disney but NCL reported it takes close to 60 days to launch a new ship, so Disney likely spent a good bit of money over most of the last quarter getting the ship ready to sail.

Get rid of those two and they are likely down slightly (one or two percent) if not even.

Right…long history of hurricanes sinking 90 days of a multi billion dollar operation…

…we should get the research department on that.

The cruiseline excuse is “more plausible”…but I don’t specifically recall that being the blame for drops in the past?

 

[Sirwalterraleigh]

Same price today as it was a decade ago. Not bad.

Well worth the $600 mil paid to Bob in that time…

 

[Sirwalterraleigh]

Ohhh, 4 pm paints a different picture.....

In the grand scheme of things…it’s the same “picture” that’s been painted for 5+ years…
They need Bob Ross to put a little happy tree on it

 

[Sirwalterraleigh]

Hey, it’s one of the few Disney price points that hasn’t gone up over time.

…winner

 

[Sirwalterraleigh]

No disagreement with the Parks needing work but a 2% decrease in attendance is cratering? Even with them seeing an increase in forward looking bookings?

It’s not 2%…it’s posting declines on top of the 5,000,000 in wdw attendance that never returned after the plague …and also they’ve admitted dips in several quarters since 2023 as well…the snowball left the top of the mountain awhile ago.

As for the price increase, we'll see what happens but I don't think any of us would be surprised to see something related to the parks get hit with it.

It’s been seen for a years now…we are seeing what the price increases do: offset losses…and then cause more.

 

[MisterPenguin]

"Parks and Experiences" should really be named "Parks and Cruises" because the other parts' contributions are trivial.

So, *Domestic Experiences" is really:

1. Disneyland
2. Walt Disney World
3. Disney Cruise Line

So, where we see that Domestic Experiences declined by 5%. That tells us *nothing* about WDW. Because we don't know which of the three segments that caused the decline. This means that proclaiming "Parks was down 5%" is just wrong. Because we don't know.

Also note that Domestic Experiences went up 2%. Was that from DL, WDW, or DCL, or any combination of the three? We don't know.

The only time we can pin a setback or an increase on a particular segment is if the guidance says something about it, like how the hurricanes affected WDW and DCL.

So, all we know is that among those three segments, revenue went up 2% and due to increased costs from any of the three segments, there was an overall net operating loss of 5%.

And that "loss" isn't a "loss" as in they "lost money." They simply made less *profit* compared to the same quarter from the previous year.

We should mourn that Parks and (Cruise) Experiences only had a net profit of $1.99B instead of $2.1B for one quarter.

 

[monothingie]

Hard disagree Disney+ is imo the best streaming service I don’t know what I would do without it

The guy is making up arguments to rail against.

So good that they are number 3 in subscribers and only have 1 of the top 10 streaming shows. (And that is Bluey which they license.)

If you want to park the kids in front of the iPad to watch Moana for the 47th time, then yes D+ is your streaming service.

 

[TrainsOfDisney]

For those who can currently afford a step up into the Moderate or Deluxe range, their costs will continue to climb faster than inflation until a tipping point is discovered.

moderate seems the most fluid to me. When there is demand it’s almost deluxe prices and when there isn’t demand it’s almost value prices. So I think they have already found that point as well. Just anecdotal from when I’ve been looking at dates.

Iger is an improvement on Chapek from a fan, business and stockholder point of view.

He can also speak in public - I’ll give him that. He also has a better sweater collection but Josh is trying to catch up.

I do miss some of the longer hours for regular guests for sure

May I suggest a visit to Disneyland!

Looks like I ruffled a feather. Sorry.

a penguin feather at that! The worst kind to ruffle!

If you want to park the kids in front of the iPad to watch Moana for the 47th time, then yes D+ is your streaming service.

Oh c’mon… It’s not a bad service. There’s lots of content on there. I’m not a current subscriber but that’s silly.

 

[Agent H]

So good that they are number 3 in subscribers and only have 1 of the top 10 streaming shows. (And that is Bluey which they license.)

If you want to park the kids in front of the iPad to watch Moana for the 47th time, then yes D+ is your streaming service.

No more like if I want to watch phineas and ferb for the 947th time

 

[Agent H]

Oh c’mon… It’s not a bad service. There’s lots of content on there. I’m not a current subscriber but that’s silly.

Thank you for admitting this like I’d rather rebuy all those dvds of Disney movies I threw away 6 years ago

 

[Agent H]

He can also speak in public - I’ll give him that. He also has a better sweater collection but Josh is trying to catch up

I don’t know Josh wears a mean sweater