News Walt Disney Company First Quarter 2020 Earnings report shows increased spending at the parks and resorts and slight attendance gains

[wdwmagic]

Walt Disney Company First Quarter 2020 Earnings report shows increased spending at the parks and resorts and slight attendance gains

Parks, Experiences and Products revenues for the quarter increased 8% to $7.4 billion, and segment operating income increased 9% to $2.3 billion.

www.wdwmagic.com

More talk on the other segments and the overall earnings call in the Disney Co News board at https://forums.wdwmagic.com/threads...sults-webcast-on-tuesday-feb-4-4-30et.963163/

 

[Rteetz]

Overall for the company revenue was up to 20.86 billion.

Disney+ was the main talking point with 28+ million subscribers as of yesterday.

Capital expenditures on Parks and Resorts is down this quarter compared to this quarter from the previous year.

Bob Iger highlights the success of Rise of the Resistance.

Attendance up 6% for the quarter for domestic parks.

Disney is expecting a two month closure of China parks.

Hotel occupancy for domestic hotels at 92% for the quarter.

Park operation income up 9%, revenue up 8%.

 

[Rteetz]

In questioning Disney was asked if they are seeing any impacts on international issues on international guests. Asian markets do not factor in the top 5 international markets visiting domestic parks. Japan is the highest and thats for Disneyland. Disney doesn't see any impact from coronavirus on that. Brazil/South America is their big one and they are seeing a small decline there right now.

 

[wdwmagic]

Interesting that the percentage put on internationals coming to the domestic parks is 18%

 

[Rteetz]

Interesting that the percentage put on internationals coming to the domestic parks is 18%

Christine said 18-20% but currently seeing a small tick below that mainly due to less visitation from Brazil and Argentina if I remember correctly.

 

[Chef Mickey]

Another strong showing for parks and studios. Wow.

Iger said brand popularity has never been stronger.

26M Disney+ subscribers ending Dec 31 is ahead of any analyst estimate and they have 28.6M as of yesterday.

Once they get the Fox acquisition expenses and launch of Disney+ out of the way, I see earnings being extremely strong.

I have been accumulating shares on any pullback for years.

 

[Animaniac93-98]

Interesting that the percentage put on internationals coming to the domestic parks is 18%

I would also assume Canadians are considered part of "domestic" tourists, much like box office numbers.

 

[Disney Analyst]

Love that Canada is in the top 5 for WDW and Top 3 for Disneyland. Cater more to me Disney, I demand it!

 

[Sirwalterraleigh]

Interesting that the percentage put on internationals coming to the domestic parks is 18%

It’s was about 15% 20 years ago...give or take. Hasn’t move all that much...

Which means the domestic numbers are far more fascinating...wish I had a breakdown of those

I would also assume Canadians are considered part of "domestic" tourists, much like box office numbers.

That’s a good question...don’t recall if I’ve ever seen an answer to this?

 

[jt04]

Another strong showing for parks and studios. Wow.

Iger said brand popularity has never been stronger.

26M Disney+ subscribers ending Dec 31 is ahead of any analyst estimate and they have 28.6M as of yesterday.

Once they get the Fox acquisition expenses and launch of Disney+ out of the way, I see earnings being extremely strong.

I have been accumulating shares on any pullback for years.

They are really only lately investing big in the parks (attractions) and that is what really sells tickets and drives occupancy. As I was always saying, they had to repair past missteps and upgrade infrastructure before the fun investments. They finally are close to not always playing catch up.

I look for a lot more capital investment in the parks through the 50th and beyond.

 

[Sirwalterraleigh]

They are really only lately investing big in the parks (attractions) and that is what really sells tickets and drives occupancy. As I was always saying, they had to repair past missteps and upgrade infrastructure before the fun investments. They finally are close to not always playing catch up.

I look for a lot more capital investment in the parks through the 50th and beyond.

Hey...we actually agree!

Though not about continued park investment...all this is for bob to retire on top. With no succession - chances are not good for more capex.

 

[jt04]

Hey...we actually agree!

Though not about continued park investment...all this is for bob to retire on top. With no succession - chances are not good for more capex.

Why would your cynicism suddenly be right now?

Unless Iger runs for President he likely will still be on the board. His legacy also will depend on a transition that is successful IMO.

Even with a successful transition you and others will say Iger was a bad hire and in over his head. It has been very entertaining watching his critics.

 

[Stripes]

Love that Canada is in the top 5 for WDW and Top 3 for Disneyland. Cater more to me Disney, I demand it!

If I'm not mistaken, didn't I hear that Canada is the top foreign market for Disneyland?

 

[HauntedMansionFLA]

They are really only lately investing big in the parks (attractions) and that is what really sells tickets and drives occupancy. As I was always saying, they had to repair past missteps and upgrade infrastructure before the fun investments. They finally are close to not always playing catch up.

I look for a lot more capital investment in the parks through the 50th and beyond.

Maybe they can talk Iger in postponing his retirement again so he can keep investing in the parks even more. He’s whipping Epcot into shape!!

 

[Disney Analyst]

If I'm not mistaken, didn't I hear that Canada is the top foreign market for Disneyland?

Maybe that's why they discount us every year? haha.

 

[Sirwalterraleigh]

Why would your cynicism suddenly be right now?

Unless Iger runs for President he likely will still be on the board. His legacy also will depend on a transition that is successful IMO.

Even with a successful transition you and others will say Iger was a bad hire and in over his head. It has been very entertaining watching his critics.

You got the wrong guy, kid...

But we’ll discuss the realities of Iger and what’s good and bad about him later...

Except for this: it doesn’t matter if he’s on the board (but will likely resign as is standard)...his parachute deploys when he leaves the ceo post and triggers his options.

He can laugh to the bank for the most part if it burns 6 months down the road...which is likely why he’s still there in the first place

 

[flynnibus]

Interesting that the percentage put on internationals coming to the domestic parks is 18%

Surprisingly low right?

 

[Sirwalterraleigh]

Surprisingly low right?

Only if you don’t know what you’re looking at...

For years (closer to decades - actually ) I’ve watched people grossly overestimate/assume the percentage of foreign visitors in US parks.

So this is where the psa still holds: Disney parks are designed around and supported by the American middle class...

So I always encourage people to recognize that when we talking pricing. Perspective matters.

 

[Chef Mickey]

They are really only lately investing big in the parks (attractions) and that is what really sells tickets and drives occupancy. As I was always saying, they had to repair past missteps and upgrade infrastructure before the fun investments. They finally are close to not always playing catch up.

I look for a lot more capital investment in the parks through the 50th and beyond.

Disney World was all but ignored for almost 15 years. Iger is finally making up for it.

 

[Sirwalterraleigh]

Disney World was all but ignored for almost 15 years. Iger is finally making up for it.

Except he was in charge for half of that 15 years...

Want to go through the timeline?


Lots of mistakes to go around...including not a thing from 2004-2012 if we’re counting