News Disney’s Q1 FY25 Earnings Results Webcast

[MisterPenguin]

Does it seem concerning that the reporting quarter for their busiest season for the parks (Halloween, Jersey Week, Thanksgiving, Christmas) was a bust this year domestically? I mean you don't need to be a rocket surgeon to make the educated guess that the problem was in Florida. Red Alert?

"Domestic" includes DL and DLC, as I posted above.

But, you keep wanting that figure to apply only to WDW.

OK, so, let's do that... <checks financials...> Oh, here, "Domestic" rose 2% compared to the same quarter last year. So, that means, by your calculus, that WDW made more money this year than last year!!

 

[MisterPenguin]

Actually, don't know why I never looked at the summary, but they spell out the impact of the hurricane and Treasure launch.

They peg the hurricanes at an approximately 120 million loss and the Treasure as a 75 million impact. Without those we are looking at 2.177 billion for Q1 which is a 4.8% increase over last year.

This is important to repost since people keep posting the canard that "Hurricanes!" is somehow a lie to disguise a failing park.

Domestic Parks and Cruises profited $1.99B this past quarter compared to $2.10B the same quarter last year. There's a 2% loss. Roughly the amount of loss from the hurricanes.

 

[Disstevefan1]

Somethings wrong. I am agreeing with the Penguin a lot lately

 

[MisterPenguin]

It really is amazing how a neophyte company like Netflix was able to bring a huge conglomerate like Disney to its knees.

Netflix's net profit last quarter was $1.9 billion.

TWDC's net profit last quarter was 3.7 billion (up from $2.9 billion same quarter last year).

Netflix really needs to up their theme park game.

 

[MisterPenguin]

Somethings wrong. I am agreeing with the Penguin a lot lately

I'm terrified.

 

[Dranth]

IMO flat isn't good enough. With the price increases for the parties, Q1 usually being their biggest quarter of the year and travel being up last year. The parks should be up in revenue by a lot.

Okay, but they aren't flat once you account for the one off costs, they are up. Now if you want to argue they aren't up enough or that we shouldn't discount those costs, okay, that is certainly an option but one I disagree with.

I'm not saying they are going out of business or closing. It's not doom schlock to say that they have big problems that they need to fix. There is signs everywhere that big problems are happening.

Yes, I agree there are signs and Disney is headed for a heap of trouble if they don't address them, I just think people over emphasize the current impacts given what we are seeing.

It feels like many see 2 billion in profit so it's fine.

Well, we are talking about a quarterly report for a business so it tends to focus more on the dollars. As for how these compare, they are at roughly 2013ish attendance with 2017ish level profits (when adjusted for inflation). Not bad. Could be better, but anything they can do to improve that on short notice would make it even worse for the customer.

 

[JackCH]

This is important to repost since people keep posting the canard that "Hurricanes!" is somehow a lie to disguise a failing park.

Domestic Parks and Cruises profited $1.99B this past quarter compared to $2.10B the same quarter last year. There's a 2% loss. Roughly the amount of loss from the hurricanes.

This reminds me of how people totally dismiss covid as having any impact on theme park cuts the last 5 years.

 

[Tha Realest]

To recap,

Q1 parks revenues
D+ subscribers
Ad revenue down arrow

 

[monothingie]

"Domestic" includes DL and DLC, as I posted above.

But, you keep wanting that figure to apply only to WDW.

OK, so, let's do that... <checks financials...> Oh, here, "Domestic" rose 2% compared to the same quarter last year. So, that means, by your calculus, that WDW made more money this year than last year!!

Because "domestic" lumps everything together, we'll never really know the breakdown, but come on Penguin, WDW is the weak link domestically. But let's blame the hurricanes. (even though only 1 of closures occurred during the Q1 2025 reporting window.)

Domestic Parks & Experiences operating income declined 5%, reflecting a 9 percentage-point adverse impact to year-over-year growth due to the hurricanes and cruise pre-opening expenses.

Q1 FY 2023 had a similar hurricane count closure impact and did not reflect such a sharp YOY delta.

 

[MisterPenguin]

The only path forward for the next couple of years will be through maximizing guest spending. Expect more up-charge events, higher prices for resorts, food and merch, and more LL.

Yes, that's exactly what @lentesta posted. That 'value' accommodations and food prices has leveled off since it seems the parks have hit their tipping point with 'value guests.'

However, that means that 'moderate' and 'deluxe' guests will continue to see price increases. Also, probably, more upcharges aimed at them (cf. LLPP).

Their statement (spin) about EU was the closest thing you'll get to an admission of defeat.

At the risk of repeating myself, Disney couldn't have started to compete with EU five years ago because they didn't have the cash. Streaming was their top priority in order not to be overwhelmed by cord cutting. And so, between purchasing Fox, Comcast's share of Hulu, the pandemic, and the heavy infrastructure needed for world wide streaming, there was nothing left for major park additions.

So, they're crossing their fingers for now and putting $60B into Parks and Experiences, with $17B into WDW for later.

 

[Agent H]

Somethings wrong. I am agreeing with the Penguin a lot lately

I'm terrified.

“Nibiru is coming”

 

[Disstevefan1]

I'm terrified.

 

[HauntedPirate]

"Well, if you strip this and that and this other thing plus a few other things out, everything was up!"

Inflation is calculated, officially, the same way. And it's just as easy to see through the BS. Stop throwing but-if's into the numbers soup in an attempt to defend a position.

 

[MisterPenguin]

To recap,

Q1 parks revenues

Domestic Park revenues are lumped in with cruise line revenues.

The revenue for Domestic Experience (domestic parks + DCL) went up 2%.

Oh, wait, let me put this in a way you'll understand....

The profit went down because of increased costs, but who had the increased costs? DL? WDW? DCL? We don't know.

So, we all know you want this to be referendum on WDW. But we don't have the data to convict.

BTW, International Park profits went up 28%.

 

[TrainsOfDisney]

However, that means that 'moderate' and 'deluxe' guests will continue to see price increases.

I mentioned this earlier but I think Moderates already flex either direction as needed. In high demand they are very close to deluxe prices. In low demand closer to value.

 

[Jrb1979]

Yes, I agree there are signs and Disney is headed for a heap of trouble if they don't address them, I just think people over emphasize the current impacts given what we are seeing.

Yes some over emphasize the impacts, there is just as many who continue to think everything is fine.

 

[HauntedPirate]

Yes, that's exactly what @lentesta posted. That 'value' accommodations and food prices has leveled off since it seems the parks have hit their tipping point with 'value guests.'

However, that means that 'moderate' and 'deluxe' guests will continue to see price increases. Also, probably, more upcharges aimed at them (cf. LLPP).



At the risk of repeating myself, Disney couldn't have started to compete with EU five years ago because they didn't have the cash. Streaming was their top priority in order not to be overwhelmed by cord cutting. And so, between purchasing Fox, Comcast's share of Hulu, the pandemic, and the heavy infrastructure needed for world wide streaming, there was nothing left for major park additions.

So, they're crossing their fingers for now and putting $60B into Parks and Experiences, with $17B into WDW for later.

I agree with the first half. The second half? That's 100% on management. Remember: "We've been aware of Universal's plans for a new park for more than a decade. And we have a sophisticated approach to analyzing the needs of all of our businesses and strategically deploying capital." - Bob Iger, April 2024.

#ThanksESPN
#ThanksShanghai

(Just for old times sake )

 

[Disstevefan1]

The revenue for Domestic Experience (domestic parks + DCL) went up 2%.

This is easily proved for anyone who goes to the parks. Prices in the parks are skyrocketing!

 

[Jrb1979]

I mentioned this earlier but I think Moderates already flex either direction as needed. In high demand they are very close to deluxe prices. In low demand closer to value.

While true that's what's pushing guests away. There isn't enough whales to continue to fill the deluxe resorts. It amazes me how many think they can continue to raise prices and nothing will happen.

 

[Dranth]

Because "domestic" lumps everything together, we'll never really know the breakdown, but come on Penguin, WDW is the weak link domestically. But let's blame the hurricanes. (even though only 1 of closures occurred during the Q1 2025 reporting window.)

Q1 FY 2023 had a similar hurricane count closure impact and did not reflect such a sharp YOY delta.

There were no main park closures due to hurricanes in 2023 unless I am missing one.

Milton occurred during the quarter and if you remember, that was the one that everyone thought was going to be VERY nasty for Orlando and likely resulted in a lot of canceled trips. As for hurricane Helene, I agree that they are likely stretching a bit on this one but it did hit late September which would mean it had some impact on the start of October with canceled trips. I just question how much.