Disney Q1 2019 Earnings Report

[Rteetz]

Earnings call today.

Disney Parks saw a 10% growth.

Spending on Disney Parks was up compared to previous quarters, spending 838 million.

Revenue increases at Hong Kong were offset by decreases at Shanghai and Paris.

Guest spending and occupancy was up. Attendance was comparable to Q1 2018.

 

[Disney Analyst]

Bob just said don’t expect huge marketing for Galaxy’s Edge.

 

[Rteetz]

Iger "jokes" that he should just tweet when SWGE opens because they shouldn't need much marketing for it.

 

[Rteetz]

Bob just said don’t expect huge marketing for Galaxy’s Edge.

He expects there to be enough demand to not need the marketing for it.

 

[Disney Analyst]

He expects there to be enough demand to not need the marketing for it.

He even said that his comments are direction for Parks and Resorts to have very small budgets for the marketing of Galaxy’s Edge.

 

[Rteetz]

He even said that his comments are direction for Parks and Resorts to have very small budgets for the marketing of Galaxy’s Edge.

I think part of that was jokingly to keep costs down of course but Disney will do some marketing.

 

[Disney Analyst]

I think part of that was jokingly to keep costs down of course but Disney will do some marketing.

Oh for sure! But I think he’s right that they don’t need to go too crazy. Some morning news coverage, tv ads, and YouTube clips should do it.

 

[Indy_UK]

Disney don't need to advertise Galaxies Edge. Maybe not advertising will help the crowds a tad?

 

[danlb_2000]

He expects there to be enough demand to not need the marketing for it.

… and yet they spent 5 million on a Super Bowl commercial for Infinity War: End Game. Is there really anyone who would be interested in seeing it that didn't know about it already?

 

[DisneyDebRob]

Earnings call today.

Disney Parks saw a 10% growth.

Spending on Disney Parks was up compared to previous quarters, spending 838 million.

Revenue increases at Hong Kong were offset by decreases at Shanghai and Paris.

Guest spending and occupancy was up. Attendance was comparable to Q1 2018.

I’ve been hearing nothing but how occupancy has been down for 6 months but spending was still up. Guess all that information was wrong.

 

[MisterPenguin]

… and yet they spent 5 million on a Super Bowl commercial for Infinity War: End Game. Is there really anyone who would be interested in seeing it that didn't know about it already?

Difference is that endgame will be available on thousands of theaters while SWL will only play on two.

 

[the.dreamfinder]

I’ve been hearing nothing but how occupancy has been down for 6 months but spending was still up. Guess all that information was wrong.

They had to dump rooms on Priceline and other sites to hit their numbers during the quarter, even during the holiday season. That’s a desperation move.

 

[the.dreamfinder]

Difference is that endgame will be available on thousands of theaters while SWL will only play on two.

With a particularly low hourly capacity.

 

[jt04]

I’ve been hearing nothing but how occupancy has been down for 6 months but spending was still up. Guess all that information was wrong.

I was shocked at the high occupancy rates. Expected a drop due to people waiting for GE. People who want to visit the first few months GE is open better get those ressies soon. IMO.

 

[Dunston]

… and yet they spent 5 million on a Super Bowl commercial for Infinity War: End Game. Is there really anyone who would be interested in seeing it that didn't know about it already?

I bunch of people I know are surprised that Avengers 4 is coming out already. I really think that if they don't pump the breaks after Endgame, there's gonna be serious superhero fatigue.

I think that recognizing that they won't need to market Galaxy's Edge for people to show up is funny and appropriate. It's also surprising that they'll be minimizing advertising considering how many times I saw that Toy Story Land/WDW ad with Slinky running alongside the monorail on television this Fall/Winter.

 

[danlb_2000]

I was shocked at the high occupancy rates. Expected a drop due to people waiting for GE. People who want to visit the first few months GE is open better get those ressies soon. IMO.

It will be interesting to see this quarter, I would expect the drop off due to GE to happen this year.

 

[Rteetz]

… and yet they spent 5 million on a Super Bowl commercial for Infinity War: End Game. Is there really anyone who would be interested in seeing it that didn't know about it already?

True but why release any movie trailers at all then?

I think they’ll still do their usual marketing for this land.

 

[Rteetz]

I’ve been hearing nothing but how occupancy has been down for 6 months but spending was still up. Guess all that information was wrong.

Occupancy is lumped together domestically. You also have several resort refurbishments going on. That said some resorts are better than others.

 

[Ripken10]

It will be interesting to see this quarter, I would expect the drop off due to GE to happen this year.

you don't think it is offset by a large group of people trying to hit Disney world before GE? I know we did that as well as others talked about it on here. We might have waited till next year otherwise, but now will skip a couple years

 

[Rteetz]

I bunch of people I know are surprised that Avengers 4 is coming out already. I really think that if they don't pump the breaks after Endgame, there's gonna be serious superhero fatigue.

I think that recognizing that they won't need to market Galaxy's Edge for people to show up is funny and appropriate. It's also surprising that they'll be minimizing advertising considering how many times I saw that Toy Story Land/WDW ad with Slinky running alongside the monorail on television this Fall/Winter.

There will be a bit of a break period after Endgame I believe at least for the major avenger characters. You’ll have some lesser known characters with films and the streaming service films.