There's a healthy tourism industry from the US to NZ. You have to apply for a Visa online which is granted pro forma.
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Disney's FY20 Q3 Earnings (8/4/20)
- Thread starter brb1006
- Start date
There's a healthy tourism industry from the US to NZ. You have to apply for a Visa online which is granted pro forma.
ImperfectPixie
Well-Known Member
It costs us (on average) $75 to go to the movies as a family of 4 in Massachusetts. We save the theater for the big ones like TS4, Big Hero 6, Star Wars, etc. If they think they're getting $30 for Mulan out of us on top of our subscription, they're nuts.
ETA: We pay $25 for Blu Ray/DVD/Digital combo. We're not about to pay $30 for a movie we won't even own afterwards.
esskay
Well-Known Member
Not for me. Disney+ has been heavily discounted here in the UK and I'm sure in other places too. Between the 1 year discount deal for the first year, the free bundle as part of mobile contracts and heavy discount codes in newspapers I doubt there even averaging £50/year per customer here.
After the 1 year payments end most people wont renew as theres not enough new content there to make it worthwhile right now.
Sir_Cliff
Well-Known Member
Not right now, though. I think both New Zealand and Australia have effectively shut their borders due to Covid:
https://www.immigration.govt.nz/about-us/covid-19/coronavirus-update-inz-response
"New Zealand’s border is still closed to everyone but New Zealand citizens and residents. There are some exceptions but the criteria for granting an exception are very strict. This is to help stop the spread of COVID-19 and protect the health of people already in New Zealand.
Visa processing for overseas applicants is still on hold. This is because people who are not New Zealand citizens or residents are unlikely to meet the current entry requirements. Immigration New Zealand (INZ) is not able to legally grant a visa to people who are unlikely to meet the entry requirements."
So, no Mulan
esskay
Well-Known Member
Doesnt really matter, he's right. Remember that many of the locals are making them next to nothing if they enter on an AP right now so its a very valid point.
Chef Mickey
Well-Known Member
Well, that’s vindication for me.
This was supposed to be the worst quarter ever and considering everything, they held up well.
Better days ahead.
For those confused about stock rallying...the dumpster fire of this quarter was already baked in the stock. The rally is because investors thought it would be worse than it ended up being.
This was supposed to be the worst quarter ever and considering everything, they held up well.
Better days ahead.
For those confused about stock rallying...the dumpster fire of this quarter was already baked in the stock. The rally is because investors thought it would be worse than it ended up being.
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hopemax
Well-Known Member
Which is an actual point. WDW's attendance and bookings were definitely negatively affected by virus resurgence. So if you want Disney (and many other businesses) to recover, we can't treat COVID as no big deal. Wear your mask, be smart about what you do. Chapek clearly doesn't expect WDW business to stabilize until travel stabilizes. Neither should we. Interesting chicken and egg to watch, since airlines don't expect their business to stabilize until people have a reason to travel, like WDW. So airlines are looking at WDW. WDW is looking at airlines. Virus control has to come first, for people to board the plane. That thing we are unwilling to prioritize because reasons.
jt04
Well-Known Member
I know putting attraction development on slow is not good news for a lot of people internally. But the silver lining is technology is advancing so quickly it will make it better in the long run. To a quick recovery though.
And hopefully everything underway and announced proceeds per usual. The MK needs Tron sooner than later. IMO.
And hopefully everything underway and announced proceeds per usual. The MK needs Tron sooner than later. IMO.
ParentsOf4
Well-Known Member
Quoting from the press release:
"Diluted earnings per share (EPS) from continuing operations for the quarter was a loss of $2.61 compared to income of $0.79 in the prior-year quarter. Excluding certain items affecting comparability(1), diluted EPS for the quarter decreased 94% to $0.08 from $1.34 in the prior-year quarter."
Yes, Disney lost money but, as stated in footnote (1):
"EPS excluding certain items affecting comparability, total segment operating income and free cash flow are non-GAAP financial measures. The comparable GAAP measures are diluted EPS from continuing operations, income from continuing operations before income taxes, and cash provided by continuing operations, respectively. See the discussion on page 2 and on pages 10 through 13."
Page 12 of the press release explains these. The single biggest item is "Restructuring and impairment charges". This is explained to be:
"Charges in the current quarter were due to goodwill and intangible asset impairments ($4,953 million) and severance and contract termination costs related to the acquisition and integration of TFCF ($94 million)."
Now, $5 Billion is a lot of goodwill and impairment.
What are these goodwill and intangible asset impairments?
"During the current and prior-year quarters, the Company recorded charges totaling $5,047 million and $207 million, respectively. The current quarter charges included $4,953 million of impairments of goodwill and intangible assets at our International Channels business and $94 million of restructuring costs. The impairment of goodwill and intangible assets reflected the impacts of COVID-19 and of the ongoing shift of film and television distribution from licensing of linear channels to a direct-to-consumer business model on the International Channel businesses. Restructuring costs were primarily for severance and contract termination charges in connection with the integration of TFCF. The charge in the prior-year quarter was primarily for severance costs in connection with the integration of TFCF and accelerated equity based compensation for TFCF awards that vested upon closing of the acquisition. These charges are recorded in “Restructuring and impairment charges” in the Condensed Consolidated Statement of Income."
Disney closed down a lot of channels in its Asia-Pacific market, and wrote these off as a total loss.
The takeaway, however, is that Disney's operations made a small profit.
TiggerDad
Well-Known Member
But with the $29.99 D+ deal, the popcorn isn't included. They should agree to mail me a bag of microwave popcorn to seal the deal.
easyrowrdw
Well-Known Member
I feel like that happened on the previous call too. There were lots of "insider predictions" that never came to fruition.
It's also interesting how often the unrealized predictions are negative. It's almost like people are using these avenues to voice their personal displeasure rather than provide actual insight into the happenings of the company.
jt04
Well-Known Member
Yep. I think we will see a complete review of APs through all this. Hoping they keep them and am working on ideas in the Imagineering section. APs can be a big Win-Win at WDW but the program needs adjusting. IMO.
Sir_Cliff
Well-Known Member
Honestly, this is quite remarkable.
Particularly as we keep hearing on here that Disney is about to go bust.
BernardandBianca
Well-Known Member
So, if I ignore student loan payments, mortgage payments, and the loan payments for my cars, then I have positive cash flow????? And should consider myself wealthy???
the.dreamfinder
Well-Known Member
2019 US average ticket price was $9.11. Times four that is $36.44. One month of D+ if you’re only subscribing for the month is $7 USD. This costs the same as a matinee and Disney keeps around 95-97% of the take. Even better deal if you have a 4K HDR TV at home since D+ streams in that format and TWDS started moving their new releases to that format.
We don’t know the conditions of the transaction, but that’s a steal.
Chef Mickey
Well-Known Member
First of all, you have no understanding of markets if you don’t understand the move after a “less bad” than expected quarter. Could have been uglier.Drunken child at work again. Company shows huge losses in parks with no control over fixing the root cause. Stock goes up 5% after hours.
Second, you’re just wrong in your assessment of fixing the current issues. Parks are open...that is a huge win already and Disney has done plenty to operate safely and manage the situatio.
Third, Disney can only manage the situation. No one can “root cause“ this issue except the drug companies and maybe not even them. It’s certainly not Disney.
Lastly, given the circumstances, a profitable quarter is incredibly positive.
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Chef Mickey
Well-Known Member
That’s not a good analogy and nothing like what Disney reported.
KikoKea
Well-Known Member
Do I understand this correctly: the parks are making a profit, operating as they are with the crowds (or lack of) they are drawing?Quoting from the press release:
"Diluted earnings per share (EPS) from continuing operations for the quarter was a loss of $2.61 compared to income of $0.79 in the prior-year quarter. Excluding certain items affecting comparability(1), diluted EPS for the quarter decreased 94% to $0.08 from $1.34 in the prior-year quarter."
Yes, Disney lost money but, as stated in footnote (1):
"EPS excluding certain items affecting comparability, total segment operating income and free cash flow are non-GAAP financial measures. The comparable GAAP measures are diluted EPS from continuing operations, income from continuing operations before income taxes, and cash provided by continuing operations, respectively. See the discussion on page 2 and on pages 10 through 13."
Page 12 of the press release explains these. The single biggest item is "Restructuring and impairment charges". This is explained to be:
"Charges in the current quarter were due to goodwill and intangible asset impairments ($4,953 million) and severance and contract termination costs related to the acquisition and integration of TFCF ($94 million)."
Now, $5 Billion is a lot of goodwill and impairment.
What are these goodwill and intangible asset impairments?
"During the current and prior-year quarters, the Company recorded charges totaling $5,047 million and $207 million, respectively. The current quarter charges included $4,953 million of impairments of goodwill and intangible assets at our International Channels business and $94 million of restructuring costs. The impairment of goodwill and intangible assets reflected the impacts of COVID-19 and of the ongoing shift of film and television distribution from licensing of linear channels to a direct-to-consumer business model on the International Channel businesses. Restructuring costs were primarily for severance and contract termination charges in connection with the integration of TFCF. The charge in the prior-year quarter was primarily for severance costs in connection with the integration of TFCF and accelerated equity based compensation for TFCF awards that vested upon closing of the acquisition. These charges are recorded in “Restructuring and impairment charges” in the Condensed Consolidated Statement of Income."
Disney closed down a lot of channels in its Asia-Pacific market, and wrote these off as a total loss.
The takeaway, however, is that Disney's operations made a small profit.
Chef Mickey
Well-Known Member
Post the quote from the call.
This is almost entirely virus related. Sure, there are always small issues, but Disney would have reported their usual solid quarter, with dominating parks results absent this virus.
I listened to the call and heard nothing major from Chapek.
ParentsOf4
Well-Known Member
Think of it this way: If your tv is irreparably damaged, your tv is worthless.
Disney is saying their International Channels business is worthless.
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