Disney’s Q2 (Jan/Feb/Mar) FY 2020 Earnings Results Webcast on Tuesday, May 5, 4:30ET

Sirwalterraleigh

Premium Member
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Only by someone who hasn't been affected by this oncoming recession.

Which is no one.

Also, if Disney is showing itself to be this vulnerable, who wants to buy a vulnerable company?
That sarcasm rocket penetrated your shields!!
 
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bartholomr4

Well-Known Member
CNBC just reported from Shanghai, that Disney started selling tickets to the park this morning. Tickets for the first day sold out in 3 minutes, and for the first week in less than an hour. The park is now sold out for the next month. Looks like the pent-up demand there is overwhelming the need to shelter.

Its now up to Disney to execute, and make sure the virus doesn't spread to these visitors.

 

SourcererMark79

Well-Known Member
In the Parks
No
CNBC just reported from Shanghai, that Disney started selling tickets to the park this morning. Tickets for the first day sold out in 3 minutes, and for the first week in less than an hour. The park is now sold out for the next month. Looks like the pent-up demand there is overwhelming the need to shelter.

Its now up to Disney to execute, and make sure the virus doesn't spread to these visitors.

If this is any indication of what could potentially happen here, it's going to be a wild ride.
 

DCBaker

Well-Known Member
The park is now sold out for the next month.

The Shanghai Disneyland website doesn't show they are sold out for the next month, at least as of now.

Screen Shot 2020-05-08 at 11.10.36 AM.png
 

bartholomr4

Well-Known Member
Disney is tapping the bond market again with a six-part deal
Published: May 11, 2020 at 12:37 p.m. ET
By
Ciara Linnane

The Walt Disney Co. DIS, -0.56% is back in the bond market with plans for a six-part deal, according to a filing with the Securities and Exchange Commission. The move comes after the entertainment giant sold $6 billion of bonds in March. The company did not offer details on tranche size or maturities, but said the proceeds will be used for general corporate purposes, including repayment of commercial paper and other debt. The deal is being underwritten by BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs and Morgan Stanley, said the filing. Disney posted first-quarter earnings last week that showed profit down 90% as the coronavirus pandemic pressured everything from theme parks to film production to television advertisements. COVID-19 cost Disney at least $1 billion in profit just for its theme-park unit, executives said. Shares were down 1.3% Monday and have fallen 26% in the year to date, while the Dow Jones Industrial Average DJIA, -0.06% has fallen 15%.



It looks like Disney is taking advantage of really low rate and refinancing the remaining 21CF Debt.
 

seascape

Well-Known Member
Disney is tapping the bond market again with a six-part deal
Published: May 11, 2020 at 12:37 p.m. ET
By
Ciara Linnane

The Walt Disney Co. DIS, -0.56% is back in the bond market with plans for a six-part deal, according to a filing with the Securities and Exchange Commission. The move comes after the entertainment giant sold $6 billion of bonds in March. The company did not offer details on tranche size or maturities, but said the proceeds will be used for general corporate purposes, including repayment of commercial paper and other debt. The deal is being underwritten by BNP Paribas, Credit Suisse, Deutsche Bank, Goldman Sachs and Morgan Stanley, said the filing. Disney posted first-quarter earnings last week that showed profit down 90% as the coronavirus pandemic pressured everything from theme parks to film production to television advertisements. COVID-19 cost Disney at least $1 billion in profit just for its theme-park unit, executives said. Shares were down 1.3% Monday and have fallen 26% in the year to date, while the Dow Jones Industrial Average DJIA, -0.06% has fallen 15%.



It looks like Disney is taking advantage of really low rate and refinancing the remaining 21CF Debt.
What are they going to do with this extra money? Is it just to pay off prior debt with lower interest? To pay for their current expansion plans? Or to buy something like Sony's Spiderman and family movies and rights or something else? Given the depressed values of so many assets there are many possibilities. I am always looking for undervalued assets and there are quite a few out there that Disney could take advantage of.
 

DisneyOutsider

Well-Known Member
What are they going to do with this extra money? Is it just to pay off prior debt with lower interest? To pay for their current expansion plans? Or to buy something like Sony's Spiderman and family movies and rights or something else? Given the depressed values of so many assets there are many possibilities. I am always looking for undervalued assets and there are quite a few out there that Disney could take advantage of.

They're hemorrhaging millions upon millions of dollars every day. That's why they need the cash infusion, to pay for their enormous cost burdens. I wouldn't look for them to make any Fox-like acquisitions in the near term.
 

denyuntilcaught

Well-Known Member
When Shanghai opens, it will be the end of a 15-week closure. Assuming the same for the domestic parks is a $3.75 billion cash burn at the $250 million per week rate. It is definitely a ton of money, so luckily the company made a net income of over $11 billion last year.

I am shocked they still cannot make money off of D+ with 50+ million subscribers. For comparison, Netflix has 167 million subscribers and had a net income of over $1.8 billion last year. Yes, they charge almost twice as much, but they are also making a lot more content and paying licensing fees Disney does not have to. Netflix was making over $100 million in net income at this number of subscribers.

One thing to remember is that while Netflix pulls in a ton of revenue, it has never recorded a profit. Streaming services are notorious financial pits.
 

seascape

Well-Known Member
They're hemorrhaging millions upon millions of dollars every day. That's why they need the cash infusion, to pay for their enormous cost burdens. I wouldn't look for them to make any Fox-like acquisitions in the near term.
The are losing millions on the parks and not receiving money from the box office. However, Disney+ is positive for the cash flow and the studios. The Disney+ service is still losing money but they are paying the studio much more than they are losing. Accounting is a very interesting profession and allocating revenues and expenses fascinate. If Mandalorian was owned by Disney+ and not Lucasfilm the accounting would be completely different as the money Disney+ paid for the show would not be 100% expense since they would still own an asset but since Lucasfilm owns the show it is 100% expense for Disney+ while Lucasfilm made a profit on production and still has an asset. Bottom line, Disney does not need as much money as they borrowed. So they will either pay off more expensive debt or build or buy something else.
 

bartholomr4

Well-Known Member
What are they going to do with this extra money? Is it just to pay off prior debt with lower interest? To pay for their current expansion plans? Or to buy something like Sony's Spiderman and family movies and rights or something else? Given the depressed values of so many assets there are many possibilities. I am always looking for undervalued assets and there are quite a few out there that Disney could take advantage of.

They are going to payoff existing higher interest rate bonds, and replace them with lower priced bonds.
 

DVCakaCarlF

Well-Known Member
What are they going to do with this extra money? Is it just to pay off prior debt with lower interest? To pay for their current expansion plans? Or to buy something like Sony's Spiderman and family movies and rights or something else? Given the depressed values of so many assets there are many possibilities. I am always looking for undervalued assets and there are quite a few out there that Disney could take advantage of.
Makes the B/S look good and why not in this low interest market. The money is practically free.
 

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