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Step 1: Economic Downturn; Step 2: ?; Step Three: Increased Profit!
- Thread starter WDWFigment
- Start date
Missing20K
Well-Known Member
I don't quite understand why there is much disagreement on this topic. :shrug
isney is a publicly traded company and they put out lots of information on past financial results. Not so much on future earnings, but they do give some indication as to their outlook. As some have tried to state and others have implied, there is loads of information on the internet and interviews with Iger and CFO Staggs which pretty clearly indicates that they have NOT been completely immune to the economic slowdown ( the argument of whether there is or is not one happening I won't get into) but that they are just far more resilient than any competitor to an macroeconomic problems.
As MIDisneyFamily said Q3 hotel bookings are flat and Q4 are up over last year. As Disney usually grows its earnings, along with everything else, including hotel bookings, year over year, any time there is a flattening of revenue, profit, hotel bookings, etc. it is seen as a loss from Wall Streets perspective, hence a lower share price, and lowered outlook. Wall Street likes companies to grow as much as possible and Disney usually does a great job at this. Because of a slight slowing of the economy's growth, Disney's growth was slowed slighty as well. However, as is stated in many articles on the past quarter's earnings plastered all over the internet, they were able to increase profits because of increased ad revenue at ESPN, and because people spent more per person in the parks with basically flat attendance, as well as increased income from the Paris park.
Google Finance has lots of information on Disney's earnings. It's all in black and white, it's not estimated future earnings we are talking about, it's the past quarter's so it's pretty straight forward.
So to answer the OP blank answer:
1. Economic Downturn
2. Increased ad revenue from ESPN, higher per person sales at Parks, increased income from Disneyland Paris.
3. Increased Profit.
isney is a publicly traded company and they put out lots of information on past financial results. Not so much on future earnings, but they do give some indication as to their outlook. As some have tried to state and others have implied, there is loads of information on the internet and interviews with Iger and CFO Staggs which pretty clearly indicates that they have NOT been completely immune to the economic slowdown ( the argument of whether there is or is not one happening I won't get into) but that they are just far more resilient than any competitor to an macroeconomic problems. As MIDisneyFamily said Q3 hotel bookings are flat and Q4 are up over last year. As Disney usually grows its earnings, along with everything else, including hotel bookings, year over year, any time there is a flattening of revenue, profit, hotel bookings, etc. it is seen as a loss from Wall Streets perspective, hence a lower share price, and lowered outlook. Wall Street likes companies to grow as much as possible and Disney usually does a great job at this. Because of a slight slowing of the economy's growth, Disney's growth was slowed slighty as well. However, as is stated in many articles on the past quarter's earnings plastered all over the internet, they were able to increase profits because of increased ad revenue at ESPN, and because people spent more per person in the parks with basically flat attendance, as well as increased income from the Paris park.
Google Finance has lots of information on Disney's earnings. It's all in black and white, it's not estimated future earnings we are talking about, it's the past quarter's so it's pretty straight forward.
So to answer the OP blank answer:
1. Economic Downturn
2. Increased ad revenue from ESPN, higher per person sales at Parks, increased income from Disneyland Paris.
3. Increased Profit.
jakeman
Well-Known Member
I'm just curious, do you go to Disney anymore? You seem to be very negative about the company in general and the parks in particular.
If you are not one of these "suckers", then why are you here?
I do still go to WDW because there is still alot of nice stuff however my family will not be renewing our AP's this year because we feel that the cost of experincing the parks no longer matches the value (value has been in decline since 2000 but did slightly improve n the past year but it isn't enough).
I am not "negative" about anything. I just call it as I see it. The company as a whole is actually doing very well under Iger and thanks to Lasseter the animation and film department has not been this strong since Jeffrey Katzenberg was there.
My issue is solely with the value of the parks. The attractions they build now rely to heavy on pixar animated films rather than diversifying and creating attractions based around other popular fiction such as Star Wars, Indiana Jones, Lord of the Rings, etc. or creating wholy original attractions like Disney used to (Space Mountain, Jungle Cruise, Pirates, Haunted, etc.). Another big problem is that way to many attractions now rely on video projections and video screen gimmicks. It's like coming to WDW to stare at video screens and play wii games. If people are paying the crazy price to come to WDW they deserve fully three dimensional sets, Audio Animatronics, etc. really immersive stuff. Another issue is ride maintenance...when was the last time the bouncing brer rabbit in splash mountain worked for example? I ride the attraction about twice a year and I think i've only seen the rabbit work once in 5 years. Finally, I feel that food quality at the buffets has gone down in quality. I feel that both Chef Mickey's and Boma have seen a significant reduction in quality and on top of that they now make 18% tip mandatory on guests because other guests are freeloading with the dining plan (where they don't have to pay tip). Why should I be forced to cover not only my parties tip but other guests tips as well?
These are just some of the issues I have with the parks I, and plenty of other people, could get into more details with the problems facing the parks.
jakeman
Well-Known Member
In your opinion, the value is not there. Why must you belittle those that don't share your view?
crlachepinochet
New Member
Jungle Cruise opened in 1955. Pirates opened in 1967. Mansion opened in 1969. Space opened in 1975 at WDW. BTMRR opened first in DL in 1979. Everest opened a little over two years ago, so it's not like nothing original gets built anymore! There were never big new E-tickets every single year!
wvdisneyfamily
Well-Known Member
If I didn't have a brain of my own and I relied on the TV/media to think for me I would swear we were going through the Great Depression again.
Missing20K
Well-Known Member
Not too mention RnRC, ToT, Kali River Rapids, the original Backlot Tour, Mission:Space. E-tickets have almost always been original ideas, not based off previous franchises. And I believe TSMM is a D-ticket. I have never ridden it, but from the reviews and everything, I don't think it's a true E-ticket. :shrug:
And as far as the economy, last quarter's adjusted GDP was negative, the first technical sign of a recession. However, because it is a trailing indicator, most mild recessions are over by the time they are reported. If history repeats itself, we will be reporting a negative Q4 of GDP sometime in late January/early February, by which time we will most likely already be on the backside of any recession we may experience, and the economy will be growing at the same time the media reports that we are in the depths of a recession. By most accounts, we have been experiencing a mild recession since around the start of the new year/early March, depending on who you ask. A textbook recession lasts 2 quarters, which would suggest that we are either in the second quarter of a "felt" recession, or the first quarter of the "technical" recession. At worst, we have 3 more months of slower economic activity. Of course everything in the last paragraph is completely my uninformed, miseducated opinion. :lol:
DisneyMusician2
Well-Known Member
I really think now is not the time to think we're not in an economic downturn. If anything, many people are not taking this seriously enough.
I think the company is simply doing what they need to do. And there has been much improvement in the parks. If they did nothing, and just fixed what was there, people would complain that there was no improvement.
And if Disney just keeps building, and things went into disrepair, people would be complaining.
Attendance is up, they need more CM's, they need to make improvments and stay current, but people still complain about pricing and quality when the quaility outstrips almost every other park in the world.
I don't know what it is about the perception of the parks, but I simply don't share it.
I think the company is simply doing what they need to do. And there has been much improvement in the parks. If they did nothing, and just fixed what was there, people would complain that there was no improvement.
And if Disney just keeps building, and things went into disrepair, people would be complaining.
Attendance is up, they need more CM's, they need to make improvments and stay current, but people still complain about pricing and quality when the quaility outstrips almost every other park in the world.
I don't know what it is about the perception of the parks, but I simply don't share it.
EpcotServo
Well-Known Member
The way I see it- During the crazy crowded times, like now, it'll be just as busy-if not more.
But once the dead seasons come, it will be DEAD. Less crowded than ever.
This is, of course, good for me.
:lol:
But once the dead seasons come, it will be DEAD. Less crowded than ever.
This is, of course, good for me.
:lol:
its a loosing argument with these folks. I swear half the people on this forum really do live in (mental) fantasyland.
firemandisney
New Member
Aint that the truth.
Its amazing how many folks dont realize that the current economic times arent really that bad at all.
95% of the Home forclosures were "flippers".
Unemployment is STILL under 5.8%. Inerest rates are incredibly LOW.
Just go back to 1978 and see how bad things were. 100% worse than now.
It is considered that 5% is FULL employment to those who actually WANT to work.
The majority of folks just keep on working and enjoying life. Making house payments ontime and living their dream.
There will always be the nay sayers but they are ALWAYS angry and see the glass half empty. They are just miserable people in general and are not satisfied untill everyone is equally miserable.
In general they are just unhappy people.