Disney 3rd Quarter Earnings

[DizneyFreak2002]

Disney posted awesome 3rd quarter earnings...


Parks and Resorts revenues for the quarter increased 9% to $3.4 billion and
segment operating income increased 21% to $630 million. Results for the quarter were
driven by increases at Tokyo Disney Resort, Disney Cruise Line and the domestic parks
and resorts. The increase at Tokyo Disney Resort reflected the loss of income from the March 2011 earthquake and tsunami in Japan, which resulted in a temporary suspension of operations and a reduction in volume after reopening in the prior-year quarter, and the collection of related business interruption insurance proceeds in the current-year quarter. Operating income growth at Disney Cruise Line was due to the first full quarter of operations of the Disney Fantasy. Higher operating income at the domestic parks and resorts was primarily due to increased guest spending at both Walt Disney World Resort and Disneyland Resort and attendance growth at Disneyland Resort, partially offset by higher costs. Increased guest spending reflected higher average ticket prices, food, beverage and merchandise spending, and daily hotel room rates. Higher costs were driven by labor cost inflation, resort expansion and new guest offerings, and increased investments in systems infrastructure at Walt Disney World Resort.

The theme parks were strong thanks to TDR and DL/DCA... What is really glaring is the fact that Disney's domestic theme park attendance was up only 1% all on the shoulders of DCA/DL... NOT good news for WDW... Attendance is obviously down in Orlando... With the hotels only at 60% capacity and reports of DME having less ridership, the decrease of attendance is obvious...

What does this all mean?? Well, once again, it is proven that WDW is getting the profits based solely on cuts and rising prices... Sure the bottom line looks good to Wall Street, but reality is, the numbers for WDW aren't good... Which is why, as was posted in the Carsland thread, that something is FINALLY going to happen in WDW... Something positive, something big...

Yes, we'll have more cuts in WDW... But, as I stated before, they are running scared and are nervous... They are now begging Burbank to get some projects going... They are begging for RSR for DHS... They have also put Epcot on the radar to get some major (and much needed) work... They finally realize they are in trouble... Continuing down this path will hurt them long term and they finally realize it..

Yes, expect good things in the future... Very good things, even if it isn't RSR... DHS will be getting much needed work... Epcot as well... MK may get more... The kicker, Something for DHS may happen BEFORE we even see anything constructive about Avatar...

[TinkerbellT421]

Yes, expect good things in the future... Very good things, even if it isn't RSR... DHS will be getting much needed work... Epcot as well... MK may get more... The kicker, Something for DHS may happen BEFORE we even see anything constructive about Avatar...

so do you believe there is any "truth" behind the rumors for a carsland in DHS like I posted? curious if you have heard any murmurings. And honestly as much as I am half heartedly excited for Avatar Land creations, I am way more excited about something happening to DHS. I mean, it's no secret that that park is awful! we spend maybe four hours there every trip and there have been trips in the past that we didn't even go. I desperately need something there to occupy my time better.

[DizneyFreak2002]

so do you believe there is any "truth" behind the rumors for a carsland in DHS like I posted? curious if you have heard any murmurings. And honestly as much as I am half heartedly excited for Avatar Land creations, I am way more excited about something happening to DHS. I mean, it's no secret that that park is awful! we spend maybe four hours there every trip and there have been trips in the past that we didn't even go. I desperately need something there to occupy my time better.

From what this trusted source was saying, TDO is practically begging for it... But, if anything, RSR and a shop and eatery may be all that came, if it comes at all... TDA wants it to be exclusive to DCA, and honestly, I don't blame them... Carsland should stay in DCA and not come over to WDW... Instead, WDW should get something new, original, and not cloned from another park... Plus, they already have a property in DHS that is being under utilized.. Star Wars... So, honestly, this source can't say it is 100% certain Carsland or some form of it will make its way to WDW... But TDO wants it.. And Burbank is involved heavily... Only good things can come of this whether it is Carsland, just RSR, or something else... :)

With that said, if RSR did come to DHS, I wouldn't be disappointed.. I'd welcome it with open arms...

[dnickels]

You certainly have to think that if attendance in Florida is sinking or stagnant at best while it's surging out in CA and surging down the street at Universal that eventually they'll throw some more money at WDW but I wonder if they'll wait to see how the Fantasyland expansion impacts attendance before committing to any new capital projects.

Some interesting Tidbits from the earnings summary
-Parks & Resorts brings in 31% of the company's revenue and 19% of the company's profit.
-Media Networks (ESPN/Disney Channels) brings in 46% of revenues and 66% of the company's profit.
So while the previous conventional wisdom was that the theme parks were the cash cows for Disney, the real major contributor is Media, and especially ESPN from everything I understand.

Also, Parks & Resorts operates at an 18% profit margin so that $3,000 vacation nets Disney about $540 in profit after they pay for all the expenses of keeping the parks and resorts running. (Just an average figure of course, type of resort, type of tickets bought, dinners, etc. all impact the profit margin on a guest by guest basis)

[DizneyRox]

They say, you can put lipstick on a pig...

In addition to a cruise next summer, me and the misses are looking at getting back to Universal. Sounds like we're not the only ones.

Glad to see they might finally be taking notice.

Attendance has appeared be be pretty light compared to previous years. Maybe it is more spread out, but from these reports, not as much as we are led to believe.

You now what? I wouldn't be surprised if we see another price increase at WDW this year going by these numbers. Q3 is April, May, June for Disney, that would put the price increase right in the middle of it. Another increase before the holiday to really stick^D^D^D^D^D start Q4 off right...

[DizneyFreak2002]

For those wondering about WDW attendance, this article in the OC Register should answer those questions...




For the first time, Disney California Adventure was drawing half of the visitors who come to the resort; it is unclear whether the company includes the three Disney hotels and Downtown Disney in that statistic, or just the two parks.

Before, California Adventure drew just about 25 percent of tourism traffic, said Bob Iger, chairman and chief executive officer of the Walt Disney Co.

"California Adventure is now an excellent park in its own right," Iger said during a conference call with investors.

Overall attendance at U.S. Disney parks experienced a 1 percent increase in attendance, compared to the same period for last year. Occupancy dropped by 1.5 percent at Disney hotels, most of which are in Florida's Walt Disney World. The three Anaheim hotels are booking rooms "substantially ahead" of Walt Disney World's pace, Iger said.

"It's being driven, we believe, by the investment in California Adventure," Iger said.

Notice he says Disneyland hotels are booking "substantially ahead" of WDW's hotels... And how DCA is driving the park attendance and yet there was only a 1% growth... Yes, WDW attendance does appear to be down...

[sportsguy2315]

Notice he says Disneyland hotels are booking "substantially ahead" of WDW's hotels... And how DCA is driving the park attendance and yet there was only a 1% growth... Yes, WDW attendance does appear to be down...

I do hope TDO gets this wake up call. Universal is the "hot" Orlando destination with HP and WDW's current answer is Avatarland and New Fantasyland? :confused:

[DisneyDINK]

It is interesting that just weeks after DIS (ticker) told the street they aren't going to do any major capital spending after Cars Land, now they are faced with this dilema.

Yes, the typical Intercot boards poster (myself included) like to visit some old attractions and occasionally lament the "extinct" ones (Horizons, etc.), but the "growth" element is increasingly visiting places like Universal Orlando who perhaps realize capital spending and new rides are essential to their long term financial success. WDW has a LOT of hotel rooms to fill and DVC to sell and they aren't going to be able to keep up occupancy without some substantial investment in the parks.

As has been mentioned on the podcasts, Disney also has to do something about the time it takes to get a new attraction from the drawing board to reality.

[ChipNDale79]

It is interesting that just weeks after DIS (ticker) told the street they aren't going to do any major capital spending after Cars Land, now they are faced with this dilema.

Yes, the typical Intercot boards poster (myself included) like to visit some old attractions and occasionally lament the "extinct" ones (Horizons, etc.), but the "growth" element is increasingly visiting places like Universal Orlando who perhaps realize capital spending and new rides are essential to their long term financial success. WDW has a LOT of hotel rooms to fill and DVC to sell and they aren't going to be able to keep up occupancy without some substantial investment in the parks.

As has been mentioned on the podcasts, Disney also has to do something about the time it takes to get a new attraction from the drawing board to reality.

WDW runs the risk of getting stale if something isn't done, Disney never has had real competition in Orlando until recently, I think Universal is actually going to force WDW to do something.

I'm currently reading Married to the Mouse, its interesting that when Universal was being built it took them longer to get things from the drawing board to being finished because of all the red tape, meanwhile Disney could blow them away in timelines because they didnt have to go through the red tape.

Now it seems that Disney has created so much corporate red tape that Universal is now blowing them away in timelines.

[DisneyDINK]

WDW runs the risk of getting stale if something isn't done

Well put.

I guess the bright side of all of this is maybe there will be some good discounts coming up and maybe the parks will be a bit less crowded on my next visit.

[Mrs Bus Driver]

Well put.

I guess the bright side of all of this is maybe there will be some good discounts coming up and maybe the parks will be a bit less crowded on my next visit.

I sure hope so (shame on me):mickey:

[Cinderelley]

Very interesting. What is RSR?

[PopPhan]

Very interesting. What is RSR?

RSR = Radiator Springs Racers in CarsLand in Disney's California Adventure Park

Just about ANYTHING to replace LMA would be good by me! Once was enough...It was interesting to get the gist of how some movie stunts were created, but it takes up too much space and killed a good portion of the Backlot Tour to do it.

Maybe they should remove the Studios park of the park name and just make it a stylized vision of Hollywood glitz and glamor.....Throw in references to Disney/Pixar TV and movies -- rides/shows/etc.....and be done with it.

THIS is a half day (or less, if the crowd levels are down) park for me. It could be so much more!

[Cinderelley]

RSR = Radiator Springs Racers in CarsLand in Disney's California Adventure Park

Thank you for the explanation

[Crow]

took my first trip to DL in Feb. CA wasnt much for me. of course it was before was Cars land was open. i wanted to see DL, the original. idk if i will go back or not.
Wdw is closer, and bigger. and ive been there a lot more.
ill be at WDW next wk again. interested to see wat they are gonna do there
but i reallywant to Tokyo. i hear good things.

[Tekneek]

I don't really need or want a bunch of new attractions or a new land. I want them to do better with what they have.

They poorly manage too much of what they already have. Adding more would be a marketing splash, for sure, but wouldn't fix existing areas where they come up short.

Please have Splash Mountain running right 90+% of the time before you open up something else. Fix the Yeti. Give Spaceship Earth a proper ending. Have the Wonders of Life (or whatever you rename it) open to guests with running attractions in it. Fix the crowd flow issues in DHS. Get Tomorrowland and Future World back on track. Have the upstairs area in Imagination open to guests once again. No more "seasonal" attractions anywhere on property.

[Crow]

I don't really need or want a bunch of new attractions or a new land. I want them to do better with what they have.

They poorly manage too much of what they already have. Adding more would be a marketing splash, for sure, but wouldn't fix existing areas where they come up short.

Please have Splash Mountain running right 90+% of the time before you open up something else. Fix the Yeti. Give Spaceship Earth a proper ending. Have the Wonders of Life (or whatever you rename it) open to guests with running attractions in it. Fix the crowd flow issues in DHS. Get Tomorrowland and Future World back on track. Have the upstairs area in Imagination open to guests once again. No more "seasonal" attractions anywhere on property.

yes they do need to fix these things.