Disney Q2 FY2019 Earnings

[winstongator]

Earnings release

Webcast

I haven’t listened to webcast or read the transcript (yet).

From release:

Operating income growth for the quarter was due to growth at our domestic theme parks and resorts, increases at our consumer products business and cruise line and higher attendance and occupied room nights at Hong Kong Disneyland Resort.
...
Operating income growth at our domestic theme parks and resorts was due to increased guest spending and higher attendance and occupied room nights at Walt Disney World Resort, partially offset by higher costs. Guest spending growth was primarily due to increases in average ticket prices and food, beverage and merchandise spending. Higher costs were due to labor and other cost inflation and costs for new guest offerings.

WDW seemed packed in March, and the new normal crowded in January & February.

Studio results will be much better next quarter.

Disney+ getting mentioned as a cost in developing. Will be interesting to see how fast it is adopted.

 

[seascape]

Disney Parks and Resorts are crushing it. They appear to be the only themepark company growing in both attendance and revenue by any significant amount. Universal was basically flat. Disney is about to open up SW:GE on both coasts and watch their attendance grow. Universal is not going to respond with their major additions until 2023. They will be left way behind. Universal needs to take action sooner or their market share will continue to decline and Six Flags will pass them in worldwide attendance.

 

[jt04]

Disney Parks and Resorts are crushing it. They appear to be the only themepark company growing in both attendance and revenue by any significant amount. Universal was basically flat. Disney is about to open up SW:GE on both coasts and watch their attendance grow. Universal is not going to respond with their major additions until 2023. They will be left way behind. Universal needs to take action sooner or their market share will continue to decline and Six Flags will pass them in worldwide attendance.

Yes. The opposite of what some said on these boards 10 years ago has become the reality.

I would feel bad for Uni but I know the parent company has the resources to rebalance things. They need to spend more on developing attractions. IMO.

 

[winstongator]

Yes. The opposite of what some said on these boards 10 years ago has become the reality.

I would feel bad for Uni but I know the parent company has the resources to rebalance things. They need to spend more on developing attractions. IMO.

They are working on Fantastic Worlds, another park, as well as hotels that seem like good options when visiting Universal. The drawback of their new park is it isn't walkable from the existing two and city walk.

 

[jt04]

They are working on Fantastic Worlds, another park, as well as hotels that seem like good options when visiting Universal. The drawback of their new park is it isn't walkable from the existing two and city walk.

They are building dedicated bus lanes so that should be very efficient. Just hope the new park tries to surpass Pandora, Diagon Alley and Galaxy's Edge. That is what is necessary. IMO.

 

[winstongator]

They are building dedicated bus lanes so that should be very efficient. Just hope the new park tries to surpass Pandora, Diagon Alley and Galaxy's Edge. That is what is necessary. IMO.

Exceeding pandora, Diagon Alley & galaxy’s edge sounds like westworld to me.

If you had a park with pandora, Diagon Alley and galaxy’s edge it would be insanely crowded!

 

[jt04]

Exceeding pandora, Diagon Alley & galaxy’s edge sounds like westworld to me.

If you had a park with pandora, Diagon Alley and galaxy’s edge it would be insanely crowded!

Not if ticket sales were fixed. And reservations required.

 

[winstongator]

Listening to the call now. Took 18 minutes for the first talk of synergy. When will the synergies happen?

Edit

Another question about a Marvel land in the US. Had the person heard about the California Marvel land?

Also, lots of questions on margins...

 

[Walt d]

Listening to the call now. Took 18 minutes for the first talk of synergy. When will the synergies happen?

Edit

Another question about a Marvel land in the US. Had the person heard about the California Marvel land?

Also, lots of questions on margins...

Gee hard to Believe earnings are up when you charge over $100 to get in .

 

[MisterPenguin]

Earnings release

Webcast

I haven’t listened to webcast or read the transcript (yet).

From release:


WDW seemed packed in March, and the new normal crowded in January & February.

Studio results will be much better next quarter.

Disney+ getting mentioned as a cost in developing. Will be interesting to see how fast it is adopted.

It's 2Q, not 3Q.

Transcript still not available yet.

 

[winstongator]

It's 2Q, not 3Q.

Transcript still not available yet.

Thanks for the correction.

 

[mwlillie]

The question I have is that if you raise ticket, room and food/drink prices by over 7 percent, on average, during the past year, and you only see 5 percent revenue growth, doesn't that mean that said "growth" is declining?

 

[seascape]

The question I have is that if you raise ticket, room and food/drink prices by over 7 percent, on average, during the past year, and you only see 5 percent revenue growth, doesn't that mean that said "growth" is declining?

yes, but hotel occupancy was 93% last quarter. Putting that in perspective means each room was empty less than 7 days last quarter. That is unbelievable given the number of rooms they have.

 

[MisterPenguin]

Transcript...

https://www.thewaltdisneycompany.com/wp-content/uploads/2019/03/q2-fy19-earnings-transcript.pdf

 

[winstongator]

Transcript...

https://www.thewaltdisneycompany.com/wp-content/uploads/2019/03/q2-fy19-earnings-transcript.pdf

With Comcast as basically a 33% owner, any big decisions that are made as it relates to investment or expansion would have to be done with their cooperation. And again, I think we would probably both share a bullish outlook about Hulu, but we can't do it on our own.

That quote aged quickly.

Also, 14 mentions of ‘margin’. That’s the limiter on investment.