Disney made almost 1 billion in "theme-park profit" during the last quarter.

[CaptainAmerica]

BTW, operating income is not exactly profit. Disney made $981M operating income at parks and resorts.

They still have to pay tax on it. It's kind of like your salary vs your take home.

I just read their annual report. It's operating income ($981M).

Operating Income is prior to removing taxes and interest. Net Income is a true measure of profit because it's after taxes and interest. Also know as EBIT. Earnings before interest, taxes.

Disney doesn't report interest and taxes as part of segment profitability. Those are "Corporate and Unallocated Shared Expenses." For the purposes of segment reporting, OI and NI are the same thing.

Wallstreet is dinging them for that. I'd say the Disney Company is about as healthy as they've ever been. ESPN is just experiencing something all traditional media is experiencing. There are so many ways to get your scores, highlights, and information now, people don't plan to watch Sportscenter.

Ratings aren't the problem. ESPN has two revenue streams: subscribers, and ad sales. Ratings feed ad sales, and ad sales are doing fine. The problem is subscriber loss, i.e. ESPN's share of what you pay Comcast or Brighthouse or whomever. Additionally, margins are being pressured on the cost side by rights fees.

 

[Chef Mickey]

Disney doesn't report interest and taxes as part of segment profitability. Those are "Corporate and Unallocated Shared Expenses." For the purposes of segment reporting, OI and NI are the same thing.


Ratings aren't the problem. ESPN has two revenue streams: subscribers, and ad sales. Ratings feed ad sales, and ad sales are doing fine. The problem is subscriber loss, i.e. ESPN's share of what you pay Comcast or Brighthouse or whomever. Additionally, margins are being pressured on the cost side by rights fees.

I never talked about ratings and I understanding the reporting side. I'm just saying Disney has to pay tax on the Operating Profit and pointing out NI and OI are 2 different things in reality.

 

[CaptainAmerica]

I never talked about ratings...

Yes you did.

There are so many ways to get your scores, highlights, and information now, people don't plan to watch Sportscenter.

It has nothing to do with people not tuning in to SportsCenter because people are tuning in to SportsCenter. The problem is people dropping their cable packages entirely or young people not signing up for them in the first place.

 

[Hakunamatata]

Oh its just perception. How magical.

Not perception. Just intriguing. Some ponder the profit margins of Disney and still go. Do they ponder the profit margins of the beer company they are buying from, or the profit margins of the resteraunt they buy the burger they eat from? I just find it amusing that people are so interested in how much profit is made by their favorite theme park.

 

[Pumbas Nakasak]

Not perception. Just intriguing. Some ponder the profit margins of Disney and still go. Do they ponder the profit margins of the beer company they are buying from, or the profit margins of the resteraunt they buy the burger they eat from? I just find it amusing that people are so interested in how much profit is made by their favorite theme park.

I think people would ponder the profit margin of their favourite beer company if the reduced the alcohol content and charged more, watered down their offerings if you will. I would hazard a guess that its not the sizeable margin itself that is begrudged rather than the margin is there at a time when a company that positions itself as a high end brand has several properties within the brand that struggle to attain that high water mark, due in part to reduced care & maintenance and a failure to invest at a time when interest rates remain historically low.

All of course in my humble subjective opinion.

 

[Andrew C]

I think people would ponder the profit margin of their favourite beer company if the reduced the alcohol content and charged more, watered down their offerings if you will. I would hazard a guess that its not the sizeable margin itself that is begrudged rather than the margin is there at a time when a company that positions itself as a high end brand has several properties within the brand that struggle to attain that high water mark, due in part to reduced care & maintenance and a failure to invest at a time when interest rates remain historically low.

All of course in my humble subjective opinion.

well, they seemed to have gotten the memo and are investing more now...finally.

 

[Hakunamatata]

I think people would ponder the profit margin of their favourite beer company if the reduced the alcohol content and charged more, watered down their offerings if you will. I would hazard a guess that its not the sizeable margin itself that is begrudged rather than the margin is there at a time when a company that positions itself as a high end brand has several properties within the brand that struggle to attain that high water mark, due in part to reduced care & maintenance and a failure to invest at a time when interest rates remain historically low.

All of course in my humble subjective opinion.

I guess I just evaluate how much I enjoy the beer. If it quits being good to me, I quit buying it. Financials don't necessarily make it onto the bottle label so I have to make my choice on flavor.

 

[Chef Mickey]

Yes you did.


It has nothing to do with people not tuning in to SportsCenter because people are tuning in to SportsCenter. The problem is people dropping their cable packages entirely or young people not signing up for them in the first place.

You're just trying to argue. You wanted to argue NI and OI (which you know are clearly different) and now you want to argue semantics on ESPN. I said I didn't mention ratings, meaning the word. People don't plan to watch Sportscenter can also mean they never even had cable and don't need ESPN.

I am a DIS investor and totally understand the subscriber loss semantics.

Bottom line is that people don't need Sportscenter anymore because they can get scores and information/analysis from other sources.

 

[bjlc57]

some one explain to me why again., it's gonna take 2 to 4 years for Star Wars land and toy story land, because they don't have the money to spend? explain this to all of us in simple terms, Like basically they could build this in a year if they wanted to.. THEY JUST DON"T WANT TO... because it will cost them extra money..

 

[CaptainAmerica]

some one explain to me why again., it's gonna take 2 to 4 years for Star Wars land and toy story land, because they don't have the money to spend? explain this to all of us in simple terms, Like basically they could build this in a year if they wanted to.. THEY JUST DON"T WANT TO... because it will cost them extra money..

DCA, New Fantasyland, the Dream, the Fantasy, and NextGen all happened at the same time. Investors were nervous about that so Disney had promised them that big projects would slow down for awhile once NextGen was live. We're coming out of that slowdown and things are starting to ramp up again as @ParentsOf4 laid out.

 

[Hakunamatata]

some one explain to me why again., it's gonna take 2 to 4 years for Star Wars land and toy story land, because they don't have the money to spend? explain this to all of us in simple terms, Like basically they could build this in a year if they wanted to.. THEY JUST DON"T WANT TO... because it will cost them extra money..

Because it takes time to switch animatronics out from the jungle cruise to a Star Wars theme?

 

[Andrew C]

what did Spirit say about Bob Chapek? He wants things done "cheap and fast"? haha

 

[COProgressFan]

I guess I just evaluate how much I enjoy the beer. If it quits being good to me, I quit buying it. Financials don't necessarily make it onto the bottle label so I have to make my choice on flavor.

What if the beer is still "good", but used to be "great"? And even though it's still "good" it cost significantly more than when it was great?

These are the issues lots of us have. We still think its "good" and wish it was "great" again. The financials do matter in a sense, because they would indicate the only reason the product isn't great anymore is because management chooses for it not to be.

 

[Andrew C]

ok...craving a beer now but the workday is not yet over...thanks.

 

[TP2000]

some one explain to me why again., it's gonna take 2 to 4 years for Star Wars land and toy story land, because they don't have the money to spend? explain this to all of us in simple terms, Like basically they could build this in a year if they wanted to.. THEY JUST DON"T WANT TO... because it will cost them extra money..

I'm not sure it can be that fast, but I understand your point and your frustration.

Star Wars Land will take 2 years and 11 months from groundbreaking to grand opening in Anaheim because of the huge amount of regulations, inspections and extra construction steel/fasteners/bracing/design needed to build large structures in earthquake prone Southern California.

The timetable is extended at Disneyland due to Mother Nature and Governor Jerry Brown, in that order. Although Governor Brown would prefer he got top billing.

Cars Land broke ground in Anaheim July, 2009 and grand opened June, 2012; 2 years and 11 months. Star Wars Land broke ground in Anaheim January, 2016 and is strongly rumored to grand open December, 2018; 2 years and 11 months.

That's the timetable and excuse for Anaheim. More importantly, I have no idea why it would take longer to build Star Wars Land in Orlando. They have far fewer regulations and a political environment where Disney's relationship with inspectors and approvals from Reedy Creek and Tallahassee are much cozier than anything Disney has in Anaheim and Sacramento.

There doesn't appear to be a good excuse for the delayed timetable in Orlando. Except for money.

 

[Hakunamatata]

What if the beer is still "good", but used to be "great"? And even though it's still "good" it cost significantly more than when it was great?

.

So when it quits being good enough for enough people and profits fall, changes will be made or the company will cease to operate. I don't ponder what business decisions are being made whilst I chug my favorite beverage.

 

[Pumbas Nakasak]

So when it quits being good enough for enough people and profits fall, changes will be made or the company will cease to operate. I don't ponder what business decisions are being made whilst I chug my favorite beverage.

But then Python did give a damning review of colonial ale all those years ago, so its easy to understand the low expectations.................

 

[doctornick]

There doesn't appear to be a good excuse for the delayed timetable in Orlando. Except for money.

Well, there is a good excuse operationally that the park can't handle the influx of guests for Star Wars without increasing attraction capacity elsewhere first. That does justify delaying Star Wars opening until after stuff comes on line.

But, to go back to your point, it wouldn't justify why TSL (and whatever else is going to be built) isn't on a faster timetable. Except for money.

 

[TP2000]

Well, there is a good excuse operationally that the park can't handle the influx of guests for Star Wars without increasing attraction capacity elsewhere first. That does justify delaying Star Wars opening until after stuff comes on line.

But, to go back to your point, it wouldn't justify why TSL (and whatever else is going to be built) isn't on a faster timetable. Except for money.

Great point on the capacity thing. Using DCA 2.0 as the recent example, it was a five year project that was announced in October, 2007, began construction in 2008, and brought online lesser attractions and additions from 2009 to 2011. And then it finished with the Grand Finale' of Cars Land and Buena Vista Street opening together in June, 2012.

They'll likely want the rest of DHS fixed up and expanded before they open Star Wars as the Grand Finale'.

 

[BigThunderMatt]

There doesn't appear to be a good excuse for the delayed timetable in Orlando. Except for money.

Which is ironic because the park where it's being built is literally BLEEDING money right now. You'd think that would encourage them to, you know, actually get to building.