TWDC 2QFY16 Earnings Call Thread

ThemeParkJunkee

ThemeParkJunkee

Well-Known Member
ParentsOf4 said:
Having finally read through the 10Q, the really shocking number is that domestic Parks & Resorts revenue was up only 5.7% despite the biggest price increases in a decade.

If this trend continues in the next quarter or two, then it will be clear that Disney has pushed prices too far.
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Pretty sure price increases are more in the 7-9% realm since Q2 last year. That is somewhat disconcerting. However, there is the phenomenon known as "waiting until there is new stuff to do" at work here as well. The "less stuff to do" is also a factor at Studios. I wonder how much is price sensitivity.
 
ThemeParkJunkee

ThemeParkJunkee

Well-Known Member
GoofGoof said:
No doubt, but a significant portion of the Shanghai and Pandora spend will be spread out over 30+ years while technology components like MM+ are more like 5-7 years or less.
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Computer systems under MACRS are depreciated over 5 years or less. Non-residential buildings are 31.5 years. Components of ride systems vary widely depending on what they are. MM+ is still being depreciated.
 
A

ANJ

Active Member
So let me get this straight. Disney wans less customers? What business ever said that? NONE! Yes, the CEO is the companies biggest cheerleader but it was clear ( at least to me) that Iger was a bit nervous. Again where was the media calling him out? Where was Wall Street? What a dog and pony show. If there was ever a time to hold his feet to the fire it would have been this time.
 
Disneyhead'71

Disneyhead'71

Well-Known Member
jt04 said:
I just disagree. People are holding off for new attractions which start coming online in weeks. Disney has had to deal with what is a nearly 'no growth' economy the last 8 years. And still they have added and are adding significantly to the parks. It really is amazing.
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Disney bet against the American economy. In 2008, they weren't convinced that the U.S economy would recover. They hunkered down and didn't build dookie. Universal built through the recession. Taking advantage of low labor and material costs, and near zero interest rates. In the past 2 years, the pent up vacation demand has materialized and what people are finding is an old, bruised, and exhausted WDW and a vibrant and happening Universal.

The $1.5B redo of DCA is a drop in the bucket compared to what 15 years of neglect has done to WDW. We're $4B in already (Pandora included) and they haven't even touched the MK or Epcot and the 50th is coming up.

They are going to need $4B more. The BOD and the Shareholders are gonna spank someone.....

for doing what they wanted them to do.
 
PhotoDave219

PhotoDave219

Well-Known Member
Original Poster
Bob Harlem said:
Wow, modern Disney appears to just want to be a IP holder licensing everything and taking no risks. If they could sell off and just license the theme parks to another operator to avoid that risk I'd think they'd do it it today's atmosphere.
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The basically said that on the conference call, yes.
 
Q

Quinnmac000

Well-Known Member
Being a licensing guru is definitely working for Warner Bros after getting out of theme parks. Get a cut of profits, hold other companies to force them to spend money on attractions that will make you money, and then get money from merchandise sold. Sounds like what Disney wants.
 
Baloo62

Baloo62

Well-Known Member
Pumbas Nakasak said:
Odd that so many british working class families manage to attend multiple times. Thatll be the benefit of unions.
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Or the fact that, for most people, having the ability to run up a ton of credit card debt equals "affording it" in their minds. Take away the plastic and very few people - even the so-called wealthy - could pay off what they owe to creditors. When the global financial bubble bursts, the Disney parks will look like River Country in a very short time.
 
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ThemeParkJunkee

ThemeParkJunkee

Well-Known Member
ParentsOf4 said:
Recent results from the Disney After Hours event shows that the paying public has its limits.

WDW is not an ATM that corporate Disney can endlessly withdraw cash from.

At some point, corporate Disney needs to make a deposit.
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Excellent point, however, I think the results of operations on the Disney After Hours event won't show up until next quarter. I also think most of the "there's nothing new" effect won't be evident until then either. I am tired of P&R and Feature Films being used as an ATM for foreign investment.
 
Rodan75

Rodan75

Well-Known Member
Well. Looks like some of the leadership departures make more sense now. The DCP change especially, although how many quarters does Pitaro have to right the ship? And how long does Skipper have?
 

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