Iger’s $17 Billion Walt Disney World Investment

[Advisable Joseph]

My only guess is there is extrapolation coming from the previously-announced $17 billion investment and 13k jobs attached to that announcement.

That statement is what this thread is about, yes . I apologize for saying 15k instead of 13k.

In particular Iger claimed the investment would result in the jobs, as opposed to jobs arising to serve theoretically increasing attendance at the existing facilities.

 

[Haymarket]

When does the "next decade" for that $60 investment begin? Starting fiscal year 2024 (November 2023)?

 

[Indy_UK]

When does the "next decade" for that $60 investment begin? Starting fiscal year 2024 (November 2023)?

2033 probably

 

[Robbiem]

Is there a corresponding increase in capex?

I ask because that would point to expansion whereas opex only would, IMO, point to replacement unless you make further cuts to maintenance and staffing to cover your new assets maintenance and operations

 

[Advisable Joseph]

Is there a corresponding increase in capex?

Investment usually means capex, not opex, since capex is what would result in increased assets for the company.

 

[Robbiem]

Investment usually means capex, not opex, since capex is what would result in increased assets for the company.

I understand that but if you are adding additional assets you need a corresponding opex increase to maintain those additional assets

If you are replacing existing assets then you might not need additional opex and may actually need less, either because the new asset needs less to keep going or because its newer

for example Tron will need staff and maintenance so will increase opex costs. The Tiana ride replaces splash so I wouldn’t expect it to need any more staff to run and maintenance costs should be the same or less than splash.

The only other way to create additional stuff through capex with no opex increase would be to cut existing opex to spread the cost which likely would lead to a decline in standards and upkeep

Until we see signs that opex is increasing we can’t really say with any certainty that any of the investment will create additions rather than replacing whats there already