Disney(World) vs. Disney(land)?

[fractal]

Wall Street was looking for $11.3 billion in revenue - they came in at $11.09b.

 

[flynnibus]

From their report they claim..

Parks and Resorts revenues for the quarter increased 9% to $3.4 billion and
segment operating income increased 21% to $630 million. Results for the quarter were
driven by increases at Tokyo Disney Resort, Disney Cruise Line and the domestic parks
and resorts.
The increase at Tokyo Disney Resort reflected the loss of income from the March
2011 earthquake and tsunami in Japan, which resulted in a temporary suspension of
operations and a reduction in volume after reopening in the prior-year quarter, and the
collection of related business interruption insurance proceeds in the current-year quarter.
Operating income growth at Disney Cruise Line was due to the first full quarter of
operations of the Disney Fantasy.
Higher operating income at the domestic parks and resorts was primarily due to
increased guest spending at both Walt Disney World Resort and Disneyland Resort and
attendance growth at Disneyland Resort, partially offset by higher costs. Increased guest
spending reflected higher average ticket prices, food, beverage and merchandise
spending, and daily hotel room rates. Higher costs were driven by labor cost inflation,
resort expansion and new guest offerings, and increased investments in systems
infrastructure at Walt Disney World Resort.

 

[nepalostparks]

Bob Iger on Bloomberg TV tonight @ 6pm

On CNBC right now.

 

[disneyflush]

It also sets up a potential power struggle between TDO and TDA/Skipper John. Very interesting times.

This is so crucial to the future. A power struggle between these factions has the potential to wake the sleeping giant of WDW out of its creative slumber. Few things invite change like the feeling of being under attack.

 

[fractal]

Stock is coming back after hours. Analysts seem to like the numbers from Parks/Resort - now we just need a detailed breakdown.

 

[fractal]

Monster quarter for Disney any way you cut it - just that expecations were also big. John Carter who? Parks are really kicking butt despite the economy.

 

[Jim Handy]

In Iger's interview from CNBC, he commented on pricing increases. They believe there's room for price increases. He also used cars Land as an example of something that can justify increases.

 

[Jim Handy]

Here is the full Q3 earnings report. http://thewaltdisneycompany.com/sites/default/files/reports/q3-fy12-earnings.pdf

Higher operating income at the domestic parks and resorts was primarily due to increased guest spending at both Walt Disney World Resort and Disneyland Resort and
attendance growth at Disneyland Resort, partially offset by higher costs. Increased guest
spending reflected higher average ticket prices, food, beverage and merchandise
spending, and daily hotel room rates. Higher costs were driven by labor cost inflation,
resort expansion and new guest offerings, and increased investments in systems
infrastructure at Walt Disney World Resort.

That's a quote from the report. Note the bold part.

 

[RSoxNo1]

The news isn't that Disney might be thinking of doing something in Orlando. That's no surprise.
It's that TDO is actively pursuing the help from Burbank, and that what they want (RSR) may set up a bit of a power struggle between the two coasts.

The problem I see here points to something that Ron Schneider said on our show about Disney fans, "Disney fans want more of the same because that's all they know." TDO has proven beyond a shadow of a doubt that they're not Disney fans, but they have the same mentality. They continue to be narrow minded, but at least in this case it's in favor of adding something to the parks.

 

[jt04]

Way To Go TDO

I guess our resident TDO bashers will be getting fall down drunk tonight.

Baaaaa-ha-ha-ha!

 

[GLaDOS]

TERRIFIC quarter for Disney. I hope they realize what got them that (namely quality from TDR and DCA) and keep pushing forward with that in all of the WDW parks. If they do, I'm gonna have to start taking 10 day vacations to fit all of the Uni/WDW greatness in.

 

[njDizFan]

Way To Go TDO

I guess our resident TDO bashers will be getting fall down drunk tonight.

Baaaaa-ha-ha-ha!

I don't understand your merriment? Of course WDW is making money, that's what happens when you reduce entertainment/maintenance and raise prices.

DL did it the old fashioned way..they increased entertainment/maintenance

 

[GLaDOS]

\

I don't understand your merriment? Of course WDW is making money, that's what happens when you reduce entertainment/maintenance and raise prices.

DL did it the old fashioned way..they increased entertainment/maintenance

Why do you even bother with him?

(For the record, I have JT blocked, so I have to assume this is a response to some asinine post from him that included "Way to go TDO" and some form of the word "haters".)

 

[jt04]

I don't understand your merriment? Of course WDW is making money, that's what happens when you reduce entertainment/maintenance and raise prices.

DL did it the old fashioned way..they increased entertainment/maintenance

Short term pain for long term gain.

Patience.

Especially now that Iger has some great numbers to take before the board. Success creates success.

 

[jt04]

Iger's reforms are coming to fruition and the consumer of Disney Parks will soon be rewarded for their steadfastness.

IMO.

 

[MKeeler]

I have an idea I'm throwing out ( and releasing any claim to so it could be used ) ...

First, I'm against the idea of cloning Radiator Springs Racers. Beyond just wanting something to be unique to DCA, I worry the ride would lose much of its charm divorced from the rest of Carsland. I certainly wouldn't expect near the merchandise to be moved were the ride cloned and not the entire land.

With that said, I started thinking through how to accomplish what Disney wants (a mega-hit ride like Radiator Springs Racers and a sure-fire success like Radiator Springs Racers would be) while also providing something different and a little more suited for DHS. Something with that would bring the cache that RSR has, but tweaked for DHS. While brewing over this the answer hit me...

Cars - World Grand Prix. A ride that can use the system of Radiator Springs Racers while also providing new sights and scenes. If we're going to get something from the world of Cars, let DCA have Cars 1 and DHS have Cars 2. It works for the ride; you still can have indoor scenes explaining the race, and then you still need the race portion. You can even further strengthen a "Cars Lot" portion of Pixar Studios, all tied together by Cars 2 with the World Grand Prix and an updated Lights, Motor, Action highlighting the Cars 2 spy motif.

The main thing I would hope Disney could incorporate would be a World Grand Prix Jr, an intertwining (or at least connected) Cars-esque Speedway, so all ages could enjoy the fun.

 

[Jim Handy]

Short term pain for long term gain.

Patience.

Especially now that Iger has some great numbers to take before the board. Success creates success.

It wasn't the board throwing up road blocks....but there's still a point there....

What we can take from this is that the company now sees what significant expansion can do. This generation of management really hadn't seen that.

 

[El Grupo]

Way To Go TDO

I guess our resident TDO bashers will be getting fall down drunk tonight.

Baaaaa-ha-ha-ha!

Yes, TDO accounting dept. will be having their Rate Increases = Profit Increases celebration at 6pm this evening. Platters of cold cuts will be served, and a cash bar will be available for those who care to indulge.

 

[GLaDOS]

It wasn't the board throwing up road blocks....but there's still a point there....

What we can take from this is that the company now sees what significant expansion can do. This generation of management really hadn't seen that.

Agreed. I think and hope Carsland can have the same effect on domestic Disney parks that WWoHP had on Comcast/Uni. Comcast has seen how much they can make off of significant, quality enhancements and additions, and from that we've gotten Transformers, Despicable Me, Cinematic Spectacular, Superstar Parade, new Spider-man, Cabana Bay Beach, Potter 2, and countless other projects that haven't even got going yet.

If we can get the same kind of Renaissance from WDW, Orlando will be every theme park geeks nirvana.

 

[jt04]

It wasn't the board throwing up road blocks....but there's still a point there....

What we can take from this is that the company now sees what significant expansion can do. This generation of management really hadn't seen that.

Two points....

TDO largely can't throw up roadblocks if that is what you are suggesting. Most of the big decisions are made out of California now. TDO did what they had to do to get Iger his numbers. I doubt Iger is unhappy with them.

Second, I have been making the point for years now on this forum that DCA 2.0 would prove the economics of "significant expansion". Glad you have joined me on Team Optimism.