For people whoe did not read aticle
1."For the fiscal year, Disney's theme-park division produced operating income of $1.6 billion, up 18 percent, on revenue of $11.8 billion, up 10 percent. Revenue was 3 percent higher than the division's pre-recession peak in 2008, but the operating profit remains 18 percent below that year's levels, as margins have been squeezed by Disney's discounting and by a surge in capital spending on projects such as the new cruise ships, Aulani and multiple park expansions"
I was debating posting the results when they were released in the Business forum where it belongs (of course what is News and Rumor always seems as flexible as Silly Putty!)
But as some of the intelligent posters here such as yourself have pointed out, there are no record profits for WDW. Or anything such. This is TWDC as a whole and WDW is but a small (albeit significant) part of it ... of one division actually.
As you stated, operating PROFIT (one of those most important metrics) was DOWN 18% from 2008 when the economic meltdown first became apparent to all (and not just some of us who pay attention to such things). In other words, 2008 wasn't exactly a high water mark for P&R to start with.
And if you listened to any of the analysts or even Jay Rasulo himself, the positive results were due to first and foremost to the addition of th Disney Dream to DCL's fleet. Then you had increased spending ON FOOD (thanks DDP ... yeah, TDO is a group of geniuses!:hurl
by guests. Even hotel attendance at WDW was actually DOWN (can't recall right this second whether it was just the quarter, but I believe it was for the year). And domestic theme park attendance was basically FLAT.
In other words, there's nothing that WDW or P&R is doing on the homefront other than raise prices to push THEIR numbers to a slightly higher level.
And DVC sales have been a drag (no doubt the Aulani fiacso hurt, but WDW IS The Timeshare Kingdom of the World and where the vast majority of DVC income comes from).
2."Disney's commentary also illustrated how park attendance drawn from international markets — particularly concentrated at Disney World, where a large share of guests arrive by plane — is shifting amid global economic turmoil. Iger said attendance from the United Kingdom, Disney World's biggest overseas feeder market, fell slightly during the quarter amid a spreading European debt crisis — yet international attendance still rose nearly 10 percent overall, thanks to growing traffic from Brazil and Asia."
Yep. And with the Euro Zone in turmoil, the question going forward will be are there enough Brazilians who can take their place in Florida and enough Asians who can take their place in California.
It's not only about us in the US. Disney marketing is what helped profit also by having discounts and the article it also states they are doing away with discounts that is allowing a larger profit. We can't keep compairing to 08 as 08 did not have as many discounts as today
Disney is still discounting massively as it continues to raise prices. There are FREE dining deals for some markets out all the way for almost the next year. I just received an email offering 30-35% AP discounts for much of the rest of this year and 40% discounts for the first 3 1/2 months of 2012. That doesn't say 'we're confident in our business and our ability to stem discounting'. It says more of the same.
And again, without getting into the mud with the swine and debating drivel, these are results for TWDC as a whole with P&R a division of it and WDW a part of that division.
Way too many fans do NOT understand major media and corps like Disney and how different slices fit into the pie.
The fact the company has put out terrific numbers means absolutely NOTHING about any plans by Iger for WDW past, present or future. Media companies as a whole are doing very well. Check Viacom's results also out yesterday.
And Disney's strongest business unit right now (has been and continues) is cable networks.
~GFC~
