Disney movies drive 4th qtr; Toy Story 4 coming

[DizneyRox]

From the Interwebs:

Disney movies drive 4th qtr; Toy Story 4 coming

By MAE ANDERSON
AP Technology Writer

NEW YORK (AP) - Movie heroines and superheros were the stars of The Walt Disney Cos. fourth-quarter results on Thursday, as the success of animated tale "Frozen" and Marvel movie "Guardians of the Galaxy" helped revenue surpass expectations.

Disney Studios has had a string of hits that is likely to continue with the first of its annual "Star Wars" movie launching next year, titled "The Force Awakens." The company also announced Thursday that Toy Story 4 will hit theaters in 2017, directed by John Lasseter, who created the blockbuster franchise and directed the first two movies.

In a call with analysts, CEO Bob Iger said Disney's movie and TV offerings help it compete in the "new golden age for content."

"The studio business has been a tremendous content engine driving opportunities across the country," he said. He said the five Marvel movies that Disney has released since acquiring the brand in 2009 have averaged $1 billion in global box office receipts.

Movie studios, TV networks and cable and satellite providers alike are grappling with a changing media industry as more people watch TV and movies online and via streaming services like Netflix and Hulu. HBO made waves recently by saying it would offer a standalone streaming service late next year.

There has been some speculation that Disney's ESPN network might do something similar since it is one of the most popular channels. In a call with investors, however, Iger said that cable channel bundles are still the best choice for consumers. He said there are 101 million households with a cable or satellite subscription in the U.S., down only slightly from 101.5 million a year ago.

"While clearly the economy has had some impact over the last few years and we do see the millennials seem to be becoming subscribers a little bit later than perhaps they used to, we just feel that when you look at the quality of what's offered, meaning the number channels in the programming across those channels, and you consider the price, that is likely to remain dominant for a long time," he said.

He added that he didn't think there is a need to create a standalone ESPN streaming service since that might erode the popularity of cable bundles.

"To do it at a point where you are endangering your own business model which is already facing a fair amount of challenge because of all the changing dynamics of the media landscape, it doesn't make sense to us right now," he said.

Disney Studios had the strongest results among the media company's divisions. Revenue in that unit climbed 18 percent to $1.78 billion, with growth both in theatrical distribution due to "Maleficent" and "Guardians of the Galaxy" and home entertainment due to the continuing popularity of "Frozen" and "Captain America."

Other segments reported higher revenue as well. The Burbank, California company said revenue from media and cable networks rose 5 percent to $5.22 billion. Revenue from parks and resorts rose 7 percent to $4 billion. Consumer product revenue rose 7 percent to $1.07 billion.

Overall revenue rose 7 percent to $12.39 billion, ahead of expectations of $12.36 billion.

Fourth-quarter net income rose 8 percent to $1.5 billion, or 87 cents per share. Excluding one-time items, net income matched analyst expectations of 89 cents per share.

The stock dipped less than 2 percent after-hours, having closed at an all-time high of $92 before the report. The stock has been on a dramatic run, nearly doubling in the last two years.

Only 7% increase in parks, get ready for another ticket price increase!

[Tekneek]

From the Interwebs:

Only 7% increase in parks, get ready for another ticket price increase!

With the lunacy that is Wall Street, Disney will keep upping everything until something finally bursts and then the stock will get hammered. I should look to see if the executives are regularly selling shares these days, because they cannot wait to miss expectations and be left holding the bag (plus, acting on insider information would be a big violation).

[baldburke]

Only 7% increase in parks, get ready for another ticket price increase!

7% from parks is right in line with total growth. It's not as if the parks were lagging. Ticket price increases will always be there.

However 7% on parks established almost 60 and over 40 years ago isn't bad. Can Universal or Six Flags say the same?

[Tekneek]

7% from parks is right in line with total growth. It's not as if the parks were lagging. Ticket price increases will always be there.

7% is great. If I owned the place, I would be thrilled. However, they will be under pressure to beat that next year. That means lowering expenses and raising prices.

[DizneyRox]

Disney wants double digits, 7% doesn't cut it..

[baldburke]

Overall revenue rose 7 percent to $12.39 billion, ahead of expectations of $12.36 billion.

With M&A at some point double digits become single digits.

They beat the forecast by $30M for one quarter! It's all relative, but that's more than twice what my company does in a whole year. Not too shabby!

[DizneyFreak2002]

7% from parks is right in line with total growth. It's not as if the parks were lagging. Ticket price increases will always be there.

However 7% on parks established almost 60 and over 40 years ago isn't bad. Can Universal or Six Flags say the same?

Universal sure can:

For the third quarter of 2014, revenue from the Theme Parks segment increased 18.7% to $786 million compared to $661 million in the third quarter of 2013, reflecting higher guest attendance and per capita spending, driven by the successful opening of Orlando's The Wizarding World of Harry Potter ™ - Diagon Alley ™. Third quarter operating cash flow increased 16.9% to $402 million compared to $343 million in the same period last year, reflecting higher revenue, partially offset by an increase in operating costs to support the new attractions.



For the nine months ended September 30, 2014, revenue from the Theme Parks segment increased 13.1% to $1.9 billion compared to $1.7 billion in 2013. Operating cash flow increased 9.1% to $816 million compared to $747 million in the first nine months of 2013.

Six Flags, not so sure about, from their July earnings report:

Record Revenue and Earnings in the Second Quarter at Six Flags
Guest Spending Per Capita Rises Ten Percent in First Half of 2014 While Active Pass Base Grows 9 Percent

GRAND PRAIRIE, Texas, July 21, 2014 /PRNewswire/ -- Six Flags Entertainment Corporation (NYSE: SIX), the world's largest regional theme park company, today announced record financial performance in the second quarter 2014 as revenue grew $13 million or 4 percent to $377 million, fueled by higher guest spending. Adjusted EBITDA1 for the same three-month period was $145 million, a $7 million or 5 percent increase. Revenue for the first six months of the year was flat to prior year while Adjusted EBITDA increased 2 percent.


"We are squarely focused on executing our long-term strategy and remain confident in our ability to deliver yet another record year in 2014," said Jim Reid-Anderson, Chairman, President and CEO. "The nine percent growth in our Active Pass Base, record-high guest satisfaction ratings, and robust guest spending per capita through the first six months of the year all indicate continued strength in our business. We remain solidly on track to deliver our $500 million Modified EBITDA Target by 2015."

For the twelve-month period ending June 30, 2014, Adjusted EBITDA was $406 million and Modified EBITDA2 was $445 million. Modified EBITDA margin remained an industry high of 40.1 percent.

In the second quarter, total guest spending per capita grew $4.21 or 11 percent to $43.73, with admissions revenue per capita increasing $2.56 or 11 percent to $25.15 and in-park revenue per capita increasing $1.65 or 10 percent to $18.58. Attendance for the second quarter decreased 8 percent to 8.2 million guests primarily due to the lingering effects of the long, harsh winter that expanded school calendars and slowed early-season attendance, especially among existing members and season pass holders.

In the first six months of 2014, total guest spending per capita grew $4.01 or 10 percent to $43.75, with admissions revenue per capita increasing $2.51 or 11 percent to $25.13 and in-park revenue per capita increasing $1.50 or 9 percent to $18.62.

The Active Pass Base, which includes season pass holders and guests in the company's membership program, increased 9 percent from June 30, 2013 to June 30, 2014.

Cash earnings per share3 for the twelve-month period ending June 30, 2014 was $2.23.

During the first six months of 2014 the company invested $81 million in new capital, paid dividends of $90 million, or $0.47 per common share per quarter, and repurchased $8 million or 0.2 million shares of its common stock. Net Debt4 as of June 30, 2014 was $1,281 million, which translates to a 3.2 times net leverage ratio.

During the quarter the company announced a new strategic partnership to build multiple Six Flags-branded theme parks in China. "Our ongoing initiative to expand the Six Flags brand internationally is an exciting and important component of our long-term growth strategy," noted Reid-Anderson. "We look forward to ongoing success in this area and working closely with our new partners in China and the Middle East.

Six Flags isn't hurting, especially for parks which several are only open during spring and summer and part of the fall...

[Hammer]

Universal sure can:

For the third quarter of 2014, revenue from the Theme Parks segment increased 18.7% to $786 million compared to $661 million in the third quarter of 2013, reflecting higher guest attendance and per capita spending, driven by the successful opening of Orlando's The Wizarding World of Harry Potter ™ - Diagon Alley ™. Third quarter operating cash flow increased 16.9% to $402 million compared to $343 million in the same period last year, reflecting higher revenue, partially offset by an increase in operating costs to support the new attractions.



For the nine months ended September 30, 2014, revenue from the Theme Parks segment increased 13.1% to $1.9 billion compared to $1.7 billion in 2013. Operating cash flow increased 9.1% to $816 million compared to $747 million in the first nine months of 2013.

Well, I would hope they would have that sort of increase being as they had just opened Diagon Alley! The true test of the Universal additions will be if they get at least 7% growth 2 years after these sections have been open.

[DizneyFreak2002]

Well, I would hope they would have that sort of increase being as they had just opened Diagon Alley! The true test of the Universal additions will be if they get at least 7% growth 2 years after these sections have been open.

Still getting it 4 years after Hogsmeade opened...

[Hammer]

Still getting it 4 years after Hogsmeade opened...

The numbers this year were brought on by Diagon Alley. There have been quarters during the last 4 years where the revenue numbers for the theme parks have not been nearly as strong for Comcast/NBC Universal. I say this as a stockholder in Comcast (as well as an employee of 7 years) who bothers to look at the annual report. All I am saying is let's see if they still have double digit growth in theme park revenue 2 years from now, when there isn't an addition to the Harry Potter stuff. Hey, I would love it because then Comcast stock might get as high as Disney's, which only increases the value of my retirement portfolio (I do not own Disney stock).

[DizneyFreak2002]

The numbers this year were brought on by Diagon Alley. There have been quarters during the last 4 years where the revenue numbers for the theme parks have not been nearly as strong for Comcast/NBC Universal. I say this as a stockholder in Comcast (as well as an employee of 7 years) who bothers to look at the annual report. All I am saying is let's see if they still have double digit growth in theme park revenue 2 years from now, when there isn't an addition to the Harry Potter stuff. Hey, I would love it because then Comcast stock might get as high as Disney's, which only increases the value of my retirement portfolio (I do not own Disney stock).

They did very well with Springfield and Transformers too... Neither of which are Harry Potter and Diagon Alley... If they do half of what is expected to come down the pipe line, they will be doing rather well... I can see them doing double digits for a few more summers, at least... 15% maybe not, but I can't see why they won't pull 10%... Either way, the comment was can Universal say the same? The answer is yes... Even if they do only pull 7% without a Potter attraction opening, that puts them on par... I just wonder how they would be doing if they had 4 theme parks, 2 water parks, and an over abundance of hotel rooms...

And honestly, even Uni fanboys cannot expect this soaring in profits and attendance to continue... Eventually, things will slow down and begin to even out... Including the spending they are doing to enhance the guest experience...

To be fair, 7% is very good and Disney should be happy... Truth is, they sold MM+ as a mechanic which would guarantee double digits every quarter.. And they haven't hit that... The next two quarters will be interesting though cause now MM+ cost over runs will no longer be on any earnings statements... So we'll finally get to see if MM+ gives them the double digits they predicted.. WITHOUT A HUGE PRICE INCREASE (which is all but guaranteed)... But even then, would it be because of MM+ or because of cost cutting measures (due to MM+ budget over runs), huge price increases, and pricy hard ticket events for pricy hard ticket events?