Is attendance really down at WDW this or…

[LSLS]

The Star Cruiser write off does not impact revenue. It would be reported as a loss on paper. What little revenue it was reporting prior to closure would impact things YoY in a negative way to this years revenue. Though it was closed anyways by this quarter last year. It would do the opposite of what you are wondering if it were to have still be open, but now closed this year.

Long night, I'm thinking of Opperating Income, not revenue.

 

[BrianLo]

I'll absolutely defend myself here. It is in the SCC report, but that is NOT in the report that was released entitled q3_fy24_earnings.pdf.

This is the report I just screen capped for you…

https://thewaltdisneycompany.com/app/uploads/2024/08/q3-fy24-earnings.pdf

It’s right on the very first page under key points. FYI I know it’s just a silly mistake you didn’t intend to make. It’s easy to miss things. But it was starting to get parroted over and over and I just picked your post rather than someone else’s! Not trying to make anyone feel bad!

 

[Sirwalterraleigh]

And by the way…the reason they’re down and the market is up…other than it happens damn near every day for years…can be found with simple research:

If you search “Disney” this time last week…when the financials were predicting earnings…they were expected to make gains in pretty much all segments/metrics…

They didn’t hit them

 

[Sirwalterraleigh]

Star cruiser did not wreck Disney parks finances.

Check yo self before ya wreck yourself


Galactic spirit Halloween is what it is: a complete embarrassing failure/disaster

A permenant stain on the record

 

[BrianLo]

And by the way…the reason they’re down and the market is up…other than it happens damn near every day for years…can be found with simple research:

If you search “Disney” this time last week…when the financials were predicting earnings…they were expected to make gains in pretty much all segments/metrics…

They didn’t hit them

For once, legitimately, the market IS reacting to WDW.

Like actually, I feel like so many things with the stock price have been miss attributed, but finally all the headlines are about the parks being soft.

At least the cruise line is strong considering where that’s the bulk of their upcoming investments as nothing is coming to fix the domestic parks anytime soon.

 

[Saskdw]

I think that’s incorrect and they know it

They have overshot their prices. Ground zero.

So if they build “more stuff”…then people that can’t afford it will still not afford it…and they’ll raise prices to recoup and get even less.

That’s very 20th century amusement tactics.

Iger frankly killed it

I think because there is no quick fix here it's just going to get worse.

I have ideas of where I would start trying to turn this around, but they won't be willing to lower profits and take on expense to do it.

 

[Tha Realest]

At least the cruise line is strong considering where that’s the bulk of their upcoming investments as nothing is coming to fix the domestic parks anytime soon.

DCL is the one thing propping up parks performance right now. So of course it will be interesting to see how they destroy that goodwill from guests in the coming years. The bizarre engineering and design choice in the Wish class is a good start.

 

[Ayla]

Lipstick on a pig.

One only needs to look back at the six decades of park history to know that "MSRP" ticket, resort, and food prices will not be reduced. What they are today is simply a benchmark for future increases.

The question is what sort of discounts, inclusive perks and added value will they dream up in order to increase attendance (and thus profit). Personally, I see a chronic stubborn resistance to wait things out and continue to cut capacity and costs rather than increase them in order to address declining attendance and per-visitor spend.

That is nothing new. That is how it has always been.

 

[Sirwalterraleigh]

I think because there is no quick fix here it's just going to get worse.

I have ideas of where I would start trying to turn this around, but they won't be willing to lower profits and take on expense to do it.

The fact there are ZERO answers is why they have to get that fool outta there. They need to rebuild the hole damn…not stick chewing gum on the old one as it leaks.

DCL is the one thing propping up parks performance right now. So of course it will be interesting to see how they destroy that goodwill from guests in the coming years. The bizarre engineering and design choice in the Wish class is a good start.

Which is why they seem hell bent on destroying that as fast as they can now too

 

[doctornick]

Yea, it was actually a better report than I was expecting. Comcast was worse, but on the flip side I expect Comcast to do better next year.

Yeah, the extreme negativity here seems completely out of whack with the actual earnings report. It's not all sunshine and rainbows but it isn't really bad either. I had actually expected to see Parks be far worse than we got.

 

[TrainsOfDisney]

The parks are far more enjoyable now than they were pre-covid. Not even close.

I disagree 100%

They're both expensive, but we've switched over to Universal exclusively

I’ve started doing cruises more - the value is so much better than Disney Parks, Vegas, NYC, etc. I think many people are tired of all the hoops you have to jump through.

 

[Lilofan]

Yeah, the extreme negativity here seems completely out of whack with the actual earnings report. It's not all sunshine and rainbows but it isn't really bad either. I had actually expected to see Parks be far worse than we got.

Yes earnings report was decent and when Iger comes through with his comment to Wall Street on cost cutting then that’s at times what a CEO has to do unfortunately. The calls to get rid of Iger is just crickets after this earnings report.

 

[wannabeBelle]

I’ve started doing cruises more - the value is so much better than Disney Parks, Vegas, NYC, etc. I think many people are tired of all the hoops you have to jump through.

Same..... and multiple lines, not just Disney. Marie

 

[el_super]

I’ve started doing cruises more - the value is so much better than Disney Parks, Vegas, NYC, etc. I think many people are tired of all the hoops you have to jump through.

Despite having access to Disneyland, I don't go all that much at all anymore. And I took am snding more times doing cruises and beach resorts... For years the parks have been too crowded and too chaotic to be relaxing. It's not a surprise to me at all that the audience at large is turning away from these chaotic experiences and seeking out more relaxing alternatives. It's also not surprising to me at all that Disney is working to reduce attendance to meet the shifting market demand.

What that means for the future of the the park industry in whole is a fundamental question we can't answer just yet.

 

[BrianLo]

DCL is the one thing propping up parks performance right now. So of course it will be interesting to see how they destroy that goodwill from guests in the coming years. The bizarre engineering and design choice in the Wish class is a good start.

DCL is still massively under-bet compared to industry peers. I am actually NOT a DCL cheerleader whatsoever. I think they’ve been really overpriced for a while. But they seem to be facing less blow back than most of the other industry peers. The mass lines having cut housekeeping and a lot of blowback on RCL’s food quality. Or RCL’s price march (they certainly are building show stoppers, but they are quickly no longer a cheap line). The good or bad thing is that the industry seems to be rapidly growing and for every lost consumer, there’s another defecting from another line and another new to cruising.

My criticism of DCL still remains their build frequency. Ignoring the current snapshot, they are slowly losing market share by growing so slowly historically. Which they can change if that next fleet expansion is already in the books like I think it is.

I guess their only lucky aspect was that they were essentially a micro fleet pre pandemic so escaped that Industry downturn by and large. Plus the only thing I actually give Chapek credit for is the Adventure purchase. Which I still maintain was kind of brilliant.

 

[Sirwalterraleigh]

Yeah, the extreme negativity here seems completely out of whack with the actual earnings report. It's not all sunshine and rainbows but it isn't really bad either. I had actually expected to see Parks be far worse than we got.

Ok…now do it in the context of the rest of the market/planet?

Hows it looking

And we never really know how “bad” some of the parks figures are because they don’t have to say them.

“Attendance was comparable year over year”

So our short memories might recall some of the estimates on what that might be that leaked out in Orlando down 6%…out of the blue in the same year over year quarter. Covered by strong numbers in Anaheim…

So tell me they’re not actually reporting the same terrible number?

And as far as revenue goes…we KNOW they are gouging across the board…we talk about it 24/7…
The numbers aren’t good enough

As they also aren’t with D+…not even close

 

[BrianLo]

Yeah, the extreme negativity here seems completely out of whack with the actual earnings report. It's not all sunshine and rainbows but it isn't really bad either. I had actually expected to see Parks be far worse than we got.

The one I’ll give the thread credit for is that Wall Street finally seemed to wake up to the parks this quarter. The quarterly call was littered with pointed questions on domestic attendance and projections

They have an opportunity to partially fix the narrative with a big DL 70th push… WDW is TBD.

 

[el_super]

They have an opportunity to partially fix the narrative with a big DL 70th push… WDW is TBD.

I don't think it's totally unexpected though. The market has been prepped for bad news (with the jobs report) and fishing for additional recession signals. Softening theme park attendance (at Disney and Uni) are definitely in that category.

I am starting to wonder if they will try to postpone major expansion construction until interest rates fall, since that might be right around the corner.

 

[TrainsOfDisney]

Same..... and multiple lines, not just Disney. Marie

I’ve yet to go on a Disney cruise - hoping to find a good deal on one soon. I really like Celebrity and Virgin.

Despite having access to Disneyland, I don't go all that much at all anymore. And I took am snding more times doing cruises and beach resorts...

Interesting - I feel like Disneyland is doing much better than WDW at providing a true “Disney park” experience (WDW has the resort experience going for it… but the parks are not there in my opinion).

I wonder what Disney would look like as a truly all inclusive resort? I’m not sure how they would do that but interesting to think about.

 

[John park hopper]

87.15 somebody is watching