Disney’s Q3 FY24 Earnings Results Webcast

MisterPenguin

MisterPenguin

President of Animal Kingdom
Premium Member
Laketravis said:
This is the dominant sort of feedback one will see simply sampling various social media platforms. THIS is what is truly important, as it is the growing, negative perception that one day WDW will have to confront head on:

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Good news everyone!!

According to Tammy, Disney no longer has an attendance issue. It is, in fact, overcrowded!! Huzzah!!

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DisneyCane

Well-Known Member
Sirwalterraleigh said:
The fact it wasn’t good news by any measure might have something to do with that?

I’m gonna be honest for a change here: Disney fans need to grow up (the ones masquerading as adults) and stop believing the crap management is spinning at you.
They don’t have any answers.
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I think the biggest issue they have is after downgrading the experience and upgrading the price for so long, it will be very hard to turn the ship around. Even if they start investing and operating the way they should have been for 20 years, it will be hard to change the perception and get people back and spending at the necessary levels. It certainly won't be an overnight fix.

What I bet they are going to do is start cutting operating costs even more to try and increase profitability with the same or lower revenue. What they will find out that they should already know from other companies is that you can't squeeze blood from a stone. I can't think of a single company that has managed to successfully of implement a cost cutting strategy that led to success. Normally cost cutting is the first waypoint on the path that ends in either splitting the company up (see GE) or bankruptcy. Due to Disney's IP, splitting the company up is probably the eventual result.
 
Sirwalterraleigh

Sirwalterraleigh

Premium Member
Serpico Jones said:
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Don’t worry…big cash coming to streaming…

…it’s just the people who will pay haven’t been born yet…and the money hasn’t been printed/digitized yet
GhostHost1000 said:
and that's the parks cash being loaded into the streaming furnace
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That’s not ironically literally what’s happening.

They better get another Deadpool going…maybe have RDJ play Jack sparrow? 🤔
 
Disstevefan1

Disstevefan1

Well-Known Member
Sir_Cliff said:
Maybe I'm crazy, but the result for the parks division seems surprisingly solid to me considering all the signs that business has been soft. This is particularly true when compared to Universal, where theme park and resort revenues declined almost 11% last quarter whereas for Disney they actually rose 2%, even if operating profit declined 3%.

This is not to justify all the price gouging, etc., but considering all the articles we've been reading about troubles at the Disney theme parks, their parks and resorts division seems to be holding up better than that of their main competitors. If the decline is all Bob and Josh being idiots, what explains Universal's issues?
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The "old" measuring stick was attendance with the thinking, more people in the parks means more money coming in.

It seems now Disney is looking at the per capita spending in the parks.

I guess as long as folks in the parks are spending enough to make up for the lower attendance, Disney can claim "solid" results from the parks.

There are still folks with money that will, as Tim Tracker says, "pay the price" apparently.

For decades and and decades, theme park fans have complained the "nickel and diming" they did to us, BUT we kept showing up, attendance numbers keep going up.

Fast forward to today, Disney is now "$5 and $10" us with LL and all the other insane price increases on EVERYTHING, and attendance is falling while revenue is going up.

How long can they keep doing this is unknown
 
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DisneyCane

Well-Known Member
Disstevefan1 said:
The "old" measuring stick was attendance with the thinking, more people in the parks means more money coming in.

It seems now Disney is looking at the per capita spending in the parks.

I guess as long as folks in the parks are spending enough to make up for the lower attendance, Disney can claim "solid" results from the parks.

There are still folks with money that will, as Tim Tracker says, "pay the price" apparently.

For decades and and decades, theme park fans have complained the "nickel and diming" they did to us, BUT we kept showing up, attendance numbers keep going up.

Fast forward to today, Disney is now "$5 and $10" us with LL and all the other insane price increases on EVERYTHING, and attendance is falling while revenue is going up.

How long can they keep doing this is unknown
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In any business where operating costs increase with increased foot traffic, per capita spending is important to profitability. There will be a base level of operating expense which will stay flat up to a certain level of foot traffic and then there will start to be increases in expenses for every X number of people through the door/gate.

To be profitable, just having more customers does not mean it's a good thing. They have to be spending enough, on average, to be worth the increased costs. It's why Costco doesn't have express checkout lanes (although they limit the items in self checkout so people don't take an hour to scan an overflowing chart and stack it on the scale). They don't want people to come in and only buy a couple of things like it's a convenience store.
 
Mike S

Mike S

Well-Known Member
“Well, I think by this time my staff are convinced that Walt is right. That quality will win out. And so I think they’re going to stay with that policy because it’s proved that it’s a good business policy. Give the people everything you can give them. Keep the place as clean as you can keep it. Keep it friendly, you know. Make it a real fun place to be. I think they’re convinced and I think they’ll hang on after… as you say… well… after Disney.” – Walt Disney

Oof
 
M

MR.Dis

Well-Known Member
MisterPenguin said:
AFAIK, Disney is already getting 100% of Hulu's revenue.

Comcast pulled out of supporting Hulu with NCB/Uni content two years ago (and they have the nerve to make the case on how great Hulu is, therefor, "pay us more").

And with paying Comcast the minimum buyout (~$8B), Disney is the sole owner.

The only thing left is whether that minimum buyout was enough, or Disney has to give Comcast more.
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Yes. Be careful of headlines, Disney actually said they could pay zero to 5 billion more. Remember, the value to be decided is based on what it was worth at the time Disney took over, Not what it is worth today. NBC/Uni value was widely considered excessive by financial experts--as was the value Disney came in with considered way too low. Imagine that, 2 mega corp came in with values that were each favorable to their best interest. Best guess is there will be close to splitting the difference with Disney forking over around an additional 2 billion.
 
Rhinocerous

Rhinocerous

Premium Member
Mike S said:
“Well, I think by this time my staff are convinced that Walt is right. That quality will win out. And so I think they’re going to stay with that policy because it’s proved that it’s a good business policy. Give the people everything you can give them. Keep the place as clean as you can keep it. Keep it friendly, you know. Make it a real fun place to be. I think they’re convinced and I think they’ll hang on after… as you say… well… after Disney.” – Walt Disney

Oof
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The Sharp Pencil Boys won, no question. It wasn't even close.
 
GhostHost1000

GhostHost1000

Premium Member
MR.Dis said:
Yes. Be careful of headlines, Disney actually said they could pay zero to 5 billion more. Remember, the value to be decided is based on what it was worth at the time Disney took over, Not what it is worth today. NBC/Uni value was widely considered excessive by financial experts--as was the value Disney came in with considered way too low. Imagine that, 2 mega corp came in with values that were each favorable to their best interest. Best guess is there will be close to splitting the difference with Disney forking over around an additional 2 billion.
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Maybe Disney will make a deal with them.... $2b and the rights to Marvel on the east coast


that way they can build The Marvel's attraction in place of Jungle Cruise or Pirates next lol
 
BrianLo

BrianLo

Well-Known Member
GhostHost1000 said:
Maybe Disney will make a deal with them.... $2b and the rights to Marvel on the east coast


that way they can build The Marvel's attraction in place of Jungle Cruise or Pirates next lol
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Disney has plenty of cash on hand for whatever the final payout is. But splitting the difference seems most likely rather than the headline numbers. Which aren’t even new, we knew these numbers 6 months ago and have been awaiting the third party assessment.
 

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