Not everyone is hurting ...

[WDW1974]

http://www.orlandosentinel.com/business/orl-bk-universal-orlando-earnings-080609,0,5776619.story

I meant to post this link the other day, since people here love bashing anything that isn't Disney.

And while things certainly aren't rosey at the competition (they can't even guess when their coaster is gonna open), they didn't see their profits plunge like Disney did.

Their attendance fell big time ... but profit (which is obviously more important) actually rose 30% ... and yes, just like Disney, having Easter in the quarter certainly helped.

But this is where I think Disney is really hurt by having 30,000 rooms to fill nightly. They wind up discounting like crazy and their attendance remains healthy, but no one is paying full price for rooms (most are getting big discounts) and the smart folks who don't buy DDP aren't spending on food. And no one is spending on merchandise ... but they'll tout their attendance, while Uni's profit goes up 29% for the same period.

This oughta be a fun one to check in on later ...

 

[Phonedave]

So Universal is better at cost cutting.

I am not sure what or who I am supposed to bash.

They also reported "profits" which is a sort of nebulous thing.

In order to truly see what is going on in a company, you need to see the balance sheets. Since I don't happen to have them for Uni or for WDW, and neither does this article - nor does this article mention how the other half of the $33M that was cut, aside from marketing, come from I have to rate this article as filler fluff for a newspaper.

-dave

 

[unkadug]

So is this some kind of back handed slap towards Disney? Are we praising Universal for cutting back where we condemn Disney for the same actions?

I'm confused about the message.

You also failed to notice:
"Total profit declined 54 percent to $10.6 million."

 

[Monty]

Seems to me if they're both still making profit, they're both doing fine. :shrug:

 

[Captain Chaos]

Seems to me that Universal can only GO UP... I mean, can they get any lower in attendance???

 

[Tink313]

Isnt easier for UNI to make a profit. They only have have 2 parks and 3 hotels.
Its good to hear they doing okay. But Disney is still better :animwink:

 

[MousDad]

This thread is making me sleepy.

 

[Captain Chaos]

What 74 fails to tell you is Disney has had record profits for how many quarters in a row??? Now we are supposed to believe doom and gloom for the Dsney parks cause, OH MY GOD THEY DIDN'T MAKE OVER $1 BILLION THIS QUARTER!!!???!!!???

74, I enjoy your posts, but this grasps at some of those Doom and Gloom straws.....

 

[Figment632]

Profits are down but Disney is far from losing money.

 

[Brian Noble]

So Universal is better at cost cutting.

That's not the only reason. From the same article:

But the customers who did come spent more money on average, as per-capita spending rose 3 percent during the quarter. Universal credited "selective price changes" designed to maximize money spent on tickets, which more than offset decreased spending on items such as food and merchandise.

That's *astounding*. Every other theme park operator reported drops in per cap spending in the most recent quarter:

WDW: per-guest spending down 4%.
Disneyland: 8% drop in per-guest spending (same article).
Cedar Fair: Per-geust spending down from $40.45 to $39.50, a 2.3% drop.
Six Flags: down 4% to $36.70.


I can't find the numbers for InBev/Busch parks (Busch Gardens/Sea World), but I'd be surprised if they were much different.

Hats off to Universal---they've made the best of a bad situation.

 

[castevens]

Revenue
- Cost of Goods Sold
Gross Margin
- Operating Expenses
Net Profit (or Loss)

Profit is after paying out all expenses. Any profit = good.

 

[Brian Noble]

Some operators (notably Cedar Fair) also like to report EBITDA---earnings before interest, taxes, depreciation, and amortization. Effectively, it measures "cash flow."

 

[Captain Chaos]

Revenue
- Cost of Goods Sold
Gross Margin
- Operating Expenses
Net Profit (or Loss)

Profit is after paying out all expenses. Any profit = good.

Exactly... As long as these parks are LOSING money.... 74 wants to make is sound like all doom and gloom for Disney cause they didn't make 1 billion bucks this quarter but all is rosey at Universal cause they made a profit... Well, Disney MADE a profit too.. Geez...

 

[SnowWhiteMomma]

Seems to me that Universal can only GO UP... I mean, can they get any lower in attendance???

I got a good laugh at this comment!

 

[Lisalyn]

Well then...

Guess 11/21 better hurry up cause I have some profits
to increase! LOL
:ROFLOL::sohappy:

 

[Captain Chaos]

I got a good laugh at this comment!

And you know what's funny?? Universal apologists would lead you to believe that when they pull in their normal 6 million once HP opens, that HO brought those 6 million in and increased attendance... Well, again, THEY ARE LOSING ATTENDANCE THIS YEAR!!!!! So anything will be an increase lol... Geez...

 

[EPCOT Explorer]

Does this mean that Uni needs a team of Doom and Gloomers?:lookaroun

 

[tnemgif]

...since people here love bashing anything that isn't Disney.

Their attendance fell big time ... but profit (which is obviously more important) actually rose 30%...... but they'll tout their attendance, while Uni's profit goes up 29% for the same period.

...and the smart folks who don't buy DDP aren't spending on food.

This oughta be a fun one to check in on later ...

I'm glad you could enlighten me with all these facts and rid me of my ignorance on the subject - Thanks!

 

[Christi22222]

Universal had LESS crowds and still made money. Their reduced staff wasn't overworked and stressed out trying to handle too many folks. Disney may be a deal these days, but the quality of the experience is definitely lower than in the past due to staff reductions and such. It is always crowded, which by itself reduces guest experience. They aren't reinvesting much money in soaking up those constant crowds, either. They are lowering the long term quality of the product to fill hotel rooms now because they overbuilt in the boom times. This can be fixed, but why is this so hard to see as a current problem? And why is 74 a bad person for pointing this out? I honestly think they are in real danger of making the Disney legacy end with the current adult generations because they are not creating that same Disney experience we cherish for this generation. We may give them a pass, but we are already sold on Disney. What if our kids aren't? I'm sorry, but I love Disney and I am still definitely in agreement with 74. I am not a doom and gloomer. I'm just not willing to be blinded by my love of disney.

 

[Monty]

Universal had LESS crowds and still made money. Their reduced staff wasn't overworked and stressed out trying to handle too many folks. Disney may be a deal these days, but the quality of the experience is definitely lower than in the past due to staff reductions and such. It is always crowded, which by itself reduces guest experience. They aren't reinvesting much money in soaking up those constant crowds, either. They are lowering the long term quality of the product to fill hotel rooms now because they overbuilt in the boom times. This can be fixed, but why is this so hard to see as a current problem? And why is 74 a bad person for pointing this out? I honestly think they are in real danger of making the Disney legacy end with the current adult generations because they are not creating that same Disney experience we cherish for this generation. We may give them a pass, but we are already sold on Disney. What if our kids aren't? I'm sorry, but I love Disney and I am still definitely in agreement with 74. I am not a doom and gloomer. I'm just not willing to be blinded by my love of disney.

They're making a profit in a severe economic downturn. :shrug:

I've been going fairly regularly since 2001 [13 trips so far] and have not seen any reductions in the Disney experience in that 8 year stretch. Others may have, but I can only speak for myself. The Disney trip I had this past February was as enjoyable as my first.

I'm not blinded by love of Disney nor am I snorting pixie dust. I do not see any significant problem in the foreseeable future for Disney with my generatioon, my son's or eventually his children's.