TWDC Earnings

[Jimmy Thick]

As much as I hate to agree with Jimmy, this is how I interpreted what Iger was saying when I listened to the call yesterday. If the popular rides were not running at 100% capacity for the entire time the park was opening, MM+ could be helping to distribute people into times when the ride wasn't at 100%.

If MM+ is already causing substantial improved guest counts in its infancy, its going to make a bigger difference when full implementation is completed.

Or basically, its doing whats it has been designed to do. Disney once again proves they know what they are doing no matter what the ignorant fanboi's want to conjure up. 3k more per day is what, over a million more per year? What if that number improves to 10k more per day with a more efficient MM+?

Did Disney just improve or make a new revenue stream? How is it possible to say no?

Jimmy Thick- MM+, the future of theme parks, and the future is now.

 

[ford91exploder]

I knew it, I knew it, I knew it. I've not been able to book my DVC in the last couple years as easily, and sometimes there's no vacancy at all, as in my previous years since I joined in 1997. I knew it wasn't just because they had offered a special AP to DVCers recently as many have offered as the reason.

Same here I used to think Disney was gaming breakage, but having rooms out of service is a more plausible reason,

NOWHERE in the contract does it say that Disney must make an accomodation available to you AT any time, Only that it must give you points which you may or may not be able to use within the 2 year lifetime of the points

 

[DManRightHere]

So why not continually reinvest to insure the customers are always happy?

Even $100M /quarter would go a LONG ways and is a drop in the bucket in the grand scheme of things.

They do reinvest. Just not the way we want.

 

[PhotoDave219]

They do reinvest. Just not the way we want.

Explain how this happens. The financial call was yesterday, the numbers are out there. Take your time, site your sources because we will follow up on the footnotes...

 

[danlb_2000]

If MM+ is already causing substantial improved guest counts in its infancy, its going to make a bigger difference when full implementation is completed.

Or basically, its doing whats it has been designed to do. Disney once again proves they know what they are doing no matter what the ignorant fanboi's want to conjure up. 3k more per day is what, over a million more per year? What if that number improves to 10k more per day with a more efficient MM+?

Did Disney just improve or make a new revenue stream? How is it possible to say no?

Jimmy Thick- MM+, the future of theme parks, and the future is now.

And my agreement with you ends.... The additional capacity only comes into play on days where the parks close for capacity. Since that only happens a couple times a year it wouldn't account for a huge increate in attendance. Not to mention if those 3000 people couldn't get into the park they likely would have just shifted to another time of day or another day.

As for revenue stream, it's easy to say no at this point. In the past the executives have touted how MM+ would increase revenue and I believe they even said that they saw these increases during the testing, but in the earning call they totally dodged any question about revenue increase due to MM+. If it really was helping directly with revenue they would be making a big deal about it to investors.

 

[flynnibus]

Disney has done a lot of things... they just aren't the things resonating with this audience and on top of it some things they are doing the audience just flat out doesn't like (like FP+, etc) or they are disappointments in many ways

WoC shows
Dreams at DLP
Sorcerers of Magic Kingdom
Kim possible updated to Agent P
Pirate game in adventureland
Test Track
New Fantasyland
New Princess hall at DLR
New Princess hall at MK
Glow with the Show
Jack Sparrow replaced Narnia
Christmas in Carsland...

and much much more. But the changes get thrown under the rug because 1) WDW is not getting enough relative to it's size/age 2) the ones that are being done aren't what many people are seeking 3) The general sense that what is being done is 'not enough'

The perspective is lost a lot of times because people are so focused on 'enough additions' they tend to dismiss the incremental stuff that was done.

 

[DManRightHere]

Explain how this happens. The financial call was yesterday, the numbers are out there. Take your time, site your sources because we will follow up on the footnotes...

I have not looked. I am talking about just Disney World Resort.

Art of Animation, MyMagic+, Spice Road Tables, Disney Springs, Fantasy Land Expansion (that does have 3 new attractions), avatar land. These are investments in the last few years.

 

[JimboJones123]

Ever think maybe, just maybe, MM+ is making things a little more efficient and that could be causing an additional 3k more people in MK?

That answer to logical?

Jimmy Thick- Have to believe Disney was carrying the Universal parks last holiday season based on that fact alone.

So the goal is to now rush guests out of the park by 3 so they can. Get dinner at Olive Garden?

Sounds highly counter to the goal.

 

[danlb_2000]

So the goal is to now rush guests out of the park by 3 so they can. Get dinner at Olive Garden?

Sounds highly counter to the goal.

If every ride was walk on all the time then it would probably lead to people spending less time in the parks, but realistically it will never be THAT efficient.

 

[PhotoDave219]

I have not looked. I am talking about just Disney World Resort.

Art of Animation, MyMagic+, Spice Road Tables, Disney Springs, Fantasy Land Expansion (that does have 3 new attractions), avatar land. These are investments in the last few years.

Okay. Counterpoint.

Art of Animation is the finish of the final Pop Century buildings which started in the early 2000s and under Eisner.

MyMagic+? Thats a program that will hopefully recoup its $2B investment someday through savings in labor costs as well as whatever behind the scene analytics theyre making. (Could have build a new park for that coin)

Spice Road Table? I'll give you that, its very pretty and was completed in a reasonable timeframe.

Disney Springs? ... jury is still out. Also about Ten years overdue.

Fantasyland? Well its not done yet and we're rapidly approaching four years of construction. Which replaces Pooh's Thoughful spot (which lasted 4 years) which replaces 2KLUTS which sat unused for 10 years. So 20 years later after 2KLUTS closed, we're still not done with its replacement. And we've added one restaurant, one QSR location, two meet and greets, and added a dumbo spinner and a cloned dark ride. Also closed a dark ride. The jury is still out.

Avatarland? Seriously, they didnt start construction on it until three years after it was announced and its due in 2017... almost Ten years in the making. You seriously arent trying to defend that, are you?

Out of your citations, four arent finished yet. Three arent close to being finished.

 

[Pixie VaVoom]

You could be 100% correct, you also could be wrong. Does efficiency equal a better guest experience? Efficiency on who's behalf? Disney or the guest? I was extremely efficient with the old system. But you know what, I like that about you....a "glass half full" kind of guy.

I used to hang out with a "glass half full" gal as a friend - but she got really annoying and I tipped over the glass and left !!

 

[Darth Sidious]

But as long as the company is 'making' money who would call them on it, I really wish the SEC would investigate wildly profitable companies with the same scrutiny that companies generating large losses incur.

Disney's occupancy claims defy the ghost towns that are the larger resorts these days, AND lots of people are renting cars because of the pricing of car rentals in the MCO market, One of the few places in the US where car rentals are more expensive is Silicon Valley.

In short I'm having a problem reconciling the ground truth with the numbers Disney is putting up, Yes the parks ARE full, the resorts ARE NOT with the exception of the values.

They didn't make it up, it is a very serious crime now and for a man looking to enter politics, he'd never risk it. Every financial statement gets thoroughly audited by an accounting firm. Can you use certain accounting practices to frame numbers differently? Sure but in some (if not all, I'm not sure at least) you have to disclose the methodology changes as well. The first I can think of on the top of my head is accounting for inventory costs.

 

[ford91exploder]

They didn't make it up, it is a very serious crime now and for a man looking to enter politics, he'd never risk it. Every financial statement gets thoroughly audited by an accounting firm. Can you use certain accounting practices to frame numbers differently? Sure but in some (if not all, I'm not sure at least) you have to disclose the methodology changes as well. The first I can think of on the top of my head is accounting for inventory costs.

It may be a serious crime but when was the last prosecution.

 

[jlsHouston]

Depends on the earnings reports, you never know buddy.

Jimmy Thick- Gotta stay positive, whooo whoa whoa.....The Hold Steady!!!

That's right be positive, live and hope, fish every day if you can

 

[jakeman]

It may be a serious crime but when was the last prosecution.

Anyone can bring charges with cause.

Go ahead and put your money where your mouth is. If you truly believe there is criminal activity with the financial reporting, why don't you file charges?

EDIT: Also, here is the link for the SEC complaint portal. Knock yourself out:

https://denebleo.sec.gov/TCRExternal/disclaimer.xhtml

 

[fillerup]

They didn't make it up, it is a very serious crime now and for a man looking to enter politics, he'd never risk it. Every financial statement gets thoroughly audited by an accounting firm. Can you use certain accounting practices to frame numbers differently? Sure but in some (if not all, I'm not sure at least) you have to disclose the methodology changes as well. The first I can think of on the top of my head is accounting for inventory costs.

I'm as jaded as anone else here, but jmcl07 is absolutely correct on this point. Financial statements and balance sheets are thoroughly audited by independent firms. And regardless of what you think of "bean counters", they've got reputations and careers to protect. Their salaries aren't being paid by TWDC.

If one of them discovered dishonest reporting at a public company and didn't take it to the SEC, they'd be risking they're jobs and their tickets.

 

[asianway]

I'm as jaded as anone else here, but jmcl07 is absolutely correct on this point. Financial statements and balance sheets are thoroughly audited by independent firms. And regardless of what you think of "bean counters", they've got reputations and careers to protect. Their salaries aren't being paid by TWDC.

If one of them discovered dishonest reporting at a public company and didn't take it to the SEC, they'd be risking they're jobs and their tickets.

Jim Heaney was fired by DVC for intentionally submitting Aulani maintenance fees that were too low to Hawaii authorities.

He was hired as the Sea World CFO a year later.

No good deed...

 

[jakeman]

Jim Heaney was fired by DVC for intentionally submitting Aulani maintenance fees that were too low to Hawaii authorities.

Source that it was intentional?

Also, wasn't the fact he was fired without a severance package support that accounting matters are taken seriously?

That SeaWorld hired him is SeaWorld problem.

 

[jlsHouston]

I'm as jaded as anone else here, but jmcl07 is absolutely correct on this point. Financial statements and balance sheets are thoroughly audited by independent firms. And regardless of what you think of "bean counters", they've got reputations and careers to protect. Their salaries aren't being paid by TWDC.

If one of them discovered dishonest reporting at a public company and didn't take it to the SEC, they'd be risking they're jobs and their tickets.

I'm not really the most knowledgeable in this department...and I'm not saying that the BIG 8 accounting firms or however many are left now since I was once in business aren't scrupulous with their methods in reporting, but it is kind of naive for all of us to speak as to the the absolute transparency in these reports. Numbers can be tweaked and categorized. Their salaries may not be paid by an individual client but to lose that client because they don't use all legally sanctioned methods in preparing a favorable annual report is something to take into account when you start interpreting financial data.

 

[asianway]

Source that it was intentional?

Also, wasn't the fact he was fired without a severance package support that accounting matters are taken seriously?

That SeaWorld hired him is SeaWorld problem.

Didn't seem to hurt his reputation. And thanks for the SEC link I already have it bookmarked