SorcererMC
Well-Known Member
Iger said something like - they are seeing such high occupancy rates in Orlando (~86%) and in CA, that we believe it would be smart for us to build more hotels out at both sites and take advantage but nothing to announce
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FY2016 Q4 Year End Earnings Call
- Thread starter ford91exploder
- Start date
Typical Iger - At the end of the day, he's bullish on everything. "Hey, we're heading straight into a black hole!" Iger: "I'm confident we'll get thru this".
Iger spoke about Hotels on BOTH coasts - no details but DIS is very happy with the hotel part of P&R. I agree a Star Wars themed hotel could be awesome.
SDL financial results ahead of expectations, but anticipating very close to or break-even for 2017.
That was a surprise also the fact that 50% of SDL guests are not from Shanghai but all over China
rreading
Well-Known Member
Thanks for the writeup! I'm surprised that you always sound so pessimistic about the company, but are so into the numbers.
I didn't follow the call, but the stock was significantly down in after hours, then all of a sudden it jumped up. What do you think made the difference? Shanghai? The Studios' profit?
Aren't the rumors:
Another Bay Lake Tower for the Contemporary
An unknown monorail adjacent resort after reconfiguring the parking.
DVCs for Caribbean.
Increased convention space for Yacht & Beach.
More rooms for Coronado
DDLand
Well-Known Member
Some things never change:
https://uk.yahoo.com/news/record-losses-disneyland-paris-attacks-204010926.html
#thanksparis
Though I kid, this wasn't an easy time for Paris and somethings are very much out their control. I hope their very crucial tourism industry makes a speedy recovery and that good times are ahead.
The resort's work on renewing the Park are impressive. I'm expecting the 25th to dazzle.
https://uk.yahoo.com/news/record-losses-disneyland-paris-attacks-204010926.html
#thanksparis
Though I kid, this wasn't an easy time for Paris and somethings are very much out their control. I hope their very crucial tourism industry makes a speedy recovery and that good times are ahead.
The resort's work on renewing the Park are impressive. I'm expecting the 25th to dazzle.
danlb_2000
Premium Member
Convention space at Yacht & Beach is confirmed.
matt9112
Well-Known Member
GoofGoof
Premium Member
So you still think SW Land construction will be halted at DHS?
He can't stop gushing about leveraging Star WarsWe've been talking about how they should build more resorts for a few years now. The key here is to build high quality but more reasonably priced resorts. They have every right to charge a premium to be on property and it makes good business sense too, but I don't think there's that much more of a market for high priced deluxe resorts. They are taking away deluxe rooms to convert to DVC already. We haven't had a new moderate resort since Coronado Springs opened almost 20 years ago. The family suites at Art of Animation seem pretty popular now too. I think there's still a market in the moderate or higher end value range that they could tap into.
ParentsOf4
Well-Known Member
Remember that the 2015 fiscal year had 53 weeks; this year had 52. In 2015, this extra week was recorded in the 4th quarter. This makes an appreciable difference in Parks & Resorts (P&R) operating income and revenue.
Looking at operating margin for the 4th quarter tells a clearer story.
In 4Q2015, P&R had $738M of operating income on revenue of $4361M, an operating margin of 16.9%.
In 4Q2016, P&R had $699M of operating income on revenue of $4386M, an operating margin of 15.9%.
As has been true for years, Disney's international theme parks (including the new Shanghai Disneyland) continue to drag down P&R financial performance.
Looking at operating margin for the 4th quarter tells a clearer story.
In 4Q2015, P&R had $738M of operating income on revenue of $4361M, an operating margin of 16.9%.
In 4Q2016, P&R had $699M of operating income on revenue of $4386M, an operating margin of 15.9%.
As has been true for years, Disney's international theme parks (including the new Shanghai Disneyland) continue to drag down P&R financial performance.
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GoofGoof
Premium Member
So after all the talk of doom and gloom this summer at WDW the drop is only 1% in operating margin? Sure that's still not great news, but it's also not nearly as bad as some people were making it out to be.
ParentsOf4
Well-Known Member
Well, a 1% drop in operating margin is significant but that was all because of poor international P&R performance. All three international resorts dragged down the numbers. I will need to wait for the annual report to be released before commenting further.
jt04
Well-Known Member
Do you mean all the international except Shanghai?
Hearing on another site they might rebuild the castle in HK. They will make a difference especially if it includes an attraction. The current version just does not do enough to fit with the majestic setting.
TDS and Paris need major E Ticket adds to keep fans interested. Especially locals as more options hit the market. These are fairly simple fixes. Just needs the capital investment.
I also can't help but think the Olympics had some impact. But I really don't know.
HauntedMansionFLA
Well-Known Member
Not being 100% owners of the International resorts, any idea how long they have partnerships with the different countries? If they would sell their ownership to let's say the worst P&R, can they still collect licensing fees from the resort? I know Iger looked at selling off the P&R back in 2007/2008.
ParentsOf4
Well-Known Member
Shanghai Disneyland lost money in its first 4 months of operation. Disney is hoping it will come close to breaking even in fiscal year 2017, with profitability achieved after that.
As pretty much everyone (including Disney) predicted, Hong Kong Disneyland business was cannibalized by Shanghai Disneyland. Attendance was down.
Meanwhile attendance and hotel occupancy also were down over at Disneyland Paris.
In a nutshell, Disney's international Parks & Resorts sucked wind.
ParentsOf4
Well-Known Member
Not sure what you mean by "how long". Disney's partial ownership is permanent.
Particularly in Shanghai, the Chinese government wanted Disney's capital. They wanted Disney to cough up the cash. There is 0% chance that the Chinese government wants to buy Shanghai Disneyland from Disney. Quite the opposite. Disney's huge capital outlay was a precondition for Disney even having a shot at the rest of the Chinese market.
Building Shanghai Disneyland was not corporate Disney's first choice. They wanted to sell films and merchandise without sinking tremendous amount of capital into mainland China. Iger was pretty much forced to open Shanghai Disneyland in order to do any other meaningful business in China.
ParentsOf4
Well-Known Member
Despite the opening of a new resort in China, this is the smallest growth in Parks & Resorts operating income and revenue since the last recession.
Parks & Resorts operating margin increased by only 0.68%, well below former P&R Chairman Tom Staggs' worse year. The international resorts are really dragging Parks & Resorts down.
Not a good first full year for P&R Chairman Bob Chapek.
Parks & Resorts operating margin increased by only 0.68%, well below former P&R Chairman Tom Staggs' worse year. The international resorts are really dragging Parks & Resorts down.
Not a good first full year for P&R Chairman Bob Chapek.