Record Disney 2nd Quarter Earnings

DDLand · May 5, 2015

They did it again:http://www.hollywoodreporter.com/news/walt-disney-reports-quarterly-earnings-793487

"The Walt Disney Company on Tuesday reported improved financials for its fiscal second quarter that exceeded Wall Street expectations.

The entertainment conglomerate, led by chairman and CEO Bob Iger, posted an earnings improvement of 10 percent to $2.11 billion, or $1.23 per share, compared with $1.92 billion, or $1.08 per share, in the year-ago period. Wall Street had predicted earnings of $1.10 per share. Revenue rose 7 percent to $12.46 billion. Disney shares rose in pre-market activity."

It looks like the studio did well even without Frozen holdover. Slight contraction, but not serious.

Here is the press release:http://thewaltdisneycompany.com/sites/default/files/press-releases/pdfs/q2-fy15-earnings.pdf

Big numbers for Walt Disney Parks and Resorts. 6% Revenue growth, and an astounding 24% Operating Income growth. Whoa.

Here's the explanation: "Higher operating income at our domestic operations was due to increases in guest spending and volumes, partially offset by higher costs. Guest spending growth was primarily due to increases in average ticket prices at our theme parks and cruise line, increased food, beverage and merchandise spending and higher average hotel room rates. The increase in volumes was primarily due to attendance growth at Walt Disney World Resort and sales of vacation club units at Disney’s Polynesian Villas & Bungalows, partially offset by lower attendance at Disneyland Resort. Cost increases were due to labor and other cost inflation and higher pension and postretirement medical costs. "

Interesting that Walt Disney World is continuing to grow at a nice clip and Disneyland is weaker. I wonder if the Cars Land fever is dying down. It's also possible the measles outbreak effected this quarters bookings more, and they're still feeling that. Let's also not forget that 60 is going to be huge, and some may be putting off visits for that. Not to mention many critical attractions were offline.

Also of note is Hong Kong Disneyland contracted slightly.

Astridia · May 5, 2015

No offense, but I don't know why you bother. The theme park results are always the same: They have raised prices on food, merchandise, and theme park tickets. They have also increased resort occupancy by converting rooms to DVC and renovating other rooms; both have resulted in fewer vacancies.

All of these measures have increased theme park profits. Yahoo!

DDLand · May 5, 2015

Astridia said:
No offense, but I don't know why you bother. The theme park results are always the same: They have raised prices on food, merchandise, and theme park tickets. They have also increased resort occupancy by converting rooms to DVC and renovating other rooms; both have resulted in fewer vacancies.

All of these measures have increased theme park profits. Yahoo!

This should be fairly interesting. Many have been contending that Disney will start to see the negative effects of their business direction sometime soon. In light of Universal's impressive quarter, it remains to be seen how WDW and DL are being effected.

Of course keep in mind the Lower tier resorts are doing just fine.

rteetz · May 5, 2015

Astridia said:
No offense, but I don't know why you bother. The theme park results are always the same: They have raised prices on food, merchandise, and theme park tickets. They have also increased resort occupancy by converting rooms to DVC and renovating other rooms; both have resulted in fewer vacancies.

All of these measures have increased theme park profits. Yahoo!

There can be some interesting info that comes out in earnings reports

lockedoutlogic · May 5, 2015

DDLand said:
This should be fairly interesting. Many have been contending that Disney will start to see the negative effects of their business direction sometime soon. In light of Universal's impressive quarter, it remains to be seen how WDW and DL are being effected.

Of course keep in mind the Lower tier resorts are doing just fine.

Lol...this is the definition of a basket of cherries.

Nobody is suggesting that Disney is going to start posting quarterly declines anytime soon...

People are spending (borrowing) money like drunken sailors on shore leave, travel is off the charts, and they've raised prices up to the stratosphere...doubling down annually for a solid 10 years. And many of the post housing bubble discounts have dried up...or been offset by just jacking up the price in the first place.

I blame etrade... As now everyone googles the stock ticker and reads a blip on cnn money and thinks that's the end game to corporate business. Much more effort is required to analyze what your actions today could manifest 5, 10, 20 years down the line...

"They did it again!"...that's funny.

They're collecting easy money - I give them credit for that... But this isn't bob Iger rolling up his sleeves and cleaning gum off benches at California adventure, for gods sake.

lockedoutlogic · May 5, 2015

rteetz said:
There can be some interesting info that comes out in earnings reports

Bet the house on this one...

If you're talking about profit off MDE...what you'll likely see is impressive, vague increases in park revenue... Which they'll link (noncommittal) to Florida and claim a victory lap.

They'll be rolling Staggs out any moment now to proclaim how the data is "indisputable"... Even though it won't read that way in English with a thin layer of lawyer polish on top.

rteetz · May 5, 2015

2.11 billion reported exceeding their expectations

DDLand · May 5, 2015

lockedoutlogic said:
Lol...this is the definition of a basket of cherries.

Nobody is suggesting that Disney is going to start posting quarterly declines anytime soon...

People are spending (borrowing) money like drunken sailors on shore leave, travel is off the charts, and they've raised prices up to the stratosphere...doubling down annually for a solid 10 years. And many of the post housing bubble discounts have dried up...or been offset by just jacking up the price in the first place.

I blame etrade... As now everyone googles the stock ticker and reads a blip on cnn money and thinks that's the end game to corporate business. Much more effort is required to analyze what your actions today could manifest 5, 10, 20 years down the line...

"They did it again!"...that's funny.

They're collecting easy money - I give them credit for that... But this isn't bob Iger rolling up his sleeves and cleaning gum off benches at California adventure, for gods sake.

Actually yes, people were expecting stagnation if not a fall in earnings per share. I saw multiple analyst reports stating Disney was too richly valued at the moment. Some have target prices in the $90s. I was not talking about you @lockedoutlogic.

I'll let the numbers speak for themselves.

DDLand · May 5, 2015

rteetz said:
2.11 billion reported exceeding their expectations

I've updated the quote with the new information!

lockedoutlogic · May 5, 2015

DDLand said:
Actually yes, people were expecting stagnation if not a fall in earnings per share. I saw multiple analyst reports stating Disney was too richly valued at the moment. Some have target prices in the $90s. I was not talking about you @lockedoutlogic.

I'll let the numbers speak for themselves.

I read the same crystal ball analysis...

I'll let the economic conditions speak for itself. When everyone thinks they're rich - Disney is in fact rich.

Nothing will become clear until the current hubba bubba conditions pop. Even then it will take time to settle out.

lockedoutlogic · May 5, 2015

rteetz said:
2.11 billion reported exceeding their expectations

Now what are we gonna do with all that money?!?

My bet is they'll
Buy strawberry shortcake or UFC...

I would host gladiatorial matches, chariot races, bread and circuses

Astridia · May 5, 2015

Just as I predicted, everything is fabulous! Amazing. They are doing wonderfully well and I'm sure they give a nice vague non-libelous nod to MDE for the revenue bump. And let me go on record right now and predict that their next earnings call will be the same as this one and the last 2-3.

SalutemyShorts · May 5, 2015

I don't think most people are saying an immediate decline is imminent. I think people are saying that in the event that the bubble bursts again, which in all likelihood it will at some point, that Disney will really feel it. It may not be for 20, 30 or more years, but when it does, Disney's exorbitant prices and lowered offerings will hurt them, a lot. Then they'll go back to having to give stuff away, rather than insulating themselves from a recession as best as they can.

MrInfinity · May 5, 2015

Hehe... On a site of Disney fans, good news comes out about the parks results, in particular our flagship park that we love, and all the commentary on it is ppl being snide and negative, asserting once again, Disney has cherry picked their stats to hide from the public the impending doom they face due to having offended the FP- crowd. I am happy to see Disney doing well. It means more development. More technology like FP+, more rides like the SDMT, and more acquisitions like Pixar and Lucas. Every quarter they keep excelling, and ppl keep saying "it's only a matter of time". This has been going on for years. Way to go Disney -- Another record quarter!

Disney is not really affected by Universal doing better. Their sweet spot of guests which is families with young kids cannot get their fix of Disney content at Uni. Uni doing better is great, but this is really just a sign of Disney doing better. As an overflow park, the more ppl that go to Disney World, the more that will take a day or two and go to Universal. Same thing w SeaWorld, the gas station across the street from Disney World, and the hotel on the corner. The more ppl Disney brings to Orlando, the better all these other businesses will do as well. It's symbiotic.

What bubble are ppl talking about? Let's not forget we are barely out of a recession and Disney is posting these records.

SalutemyShorts · May 5, 2015

MrInfinity said:
Hehe... On a site of Disney fans, good news comes out about the parks results, in particular our flagship park that we love, and all the commentary on it is ppl being snide and negative, asserting once again, Disney has cherry picked their stats to hide from the public the impending doom they face due to having offended the FP- crowd. I am happy to see Disney doing well. It means more development. More technology like FP+, more rides like the SDMT, and more acquisitions like Pixar and Lucas. Every quarter they keep excelling, and ppl keep saying "it's only a matter of time". This has been going on for years. Way to go Disney -- Another record quarter!

Disney is not really affected by Universal doing better. Their sweet spot of guests which is families with young kids cannot get their fix of Disney content at Uni. Uni doing better is great, but this is really just a sign of Disney doing better. As an overflow park, the more ppl that go to Disney World, the more that will take a day or two and go to Universal. Same thing w SeaWorld, the gas station across the street from Disney World, and the hotel on the corner. The more ppl Disney brings to Orlando, the better all these other businesses will do as well. It's symbiotic.

Oh, I'm excited by good numbers. It pushes more people to Universal, and I'm a huge Harry Potter nerd, so anything that can help that grow is great with me. I'm also not too bothered by Disney's price raises as I've only been going as an adult for the past two years so I never really saw the financial impact of the two trips I made as a kid. I'm sure if I'd been paying for trips for the past 15 years and saw the increases that have come in that time, I'd be more than annoyed.

All I want is for Disney to overhaul Hollywood Studios and I'd be ecstatic. That park was just depressing when I was there a few months ago.

lugnut33 · May 5, 2015

rteetz said:
2.11 billion reported exceeding their expectations

A billion of that will go to Iger. <I'm kidding about the number, but you can bet he'll see a huge bonus this year>

cakebaker · May 5, 2015

MrInfinity said:
Hehe... On a site of Disney fans, good news comes out about the parks results, in particular our flagship park that we love, and all the commentary on it is ppl being snide and negative....

But it's the love of Disney that keeps them here- remember that.

MrInfinity said:
More technology like FP+, more rides like the SDMT, and more acquisitions like Pixar and Lucas. Every quarter they keep excelling, and ppl keep saying "it's only a matter of time". This has been going on for years. Way to go Disney -- Another record quarter!

I keep waiting for the "wait until" to drop too. All in all, it's great news for Disney and try as one might, you just can't turn this report, at a time when they're instituting some of the biggest changes they have ever done, into a negative. I almost feel like apologizing for it.....almost.

rteetz · May 5, 2015

MrInfinity said:
Hehe... On a site of Disney fans, good news comes out about the parks results, in particular our flagship park that we love, and all the commentary on it is ppl being snide and negative, asserting once again, Disney has cherry picked their stats to hide from the public the impending doom they face due to having offended the FP- crowd. I am happy to see Disney doing well. It means more development. More technology like FP+, more rides like the SDMT, and more acquisitions like Pixar and Lucas. Every quarter they keep excelling, and ppl keep saying "it's only a matter of time". This has been going on for years. Way to go Disney -- Another record quarter!

Disney is not really affected by Universal doing better. Their sweet spot of guests which is families with young kids cannot get their fix of Disney content at Uni. Uni doing better is great, but this is really just a sign of Disney doing better. As an overflow park, the more ppl that go to Disney World, the more that will take a day or two and go to Universal. Same thing w SeaWorld, the gas station across the street from Disney World, and the hotel on the corner. The more ppl Disney brings to Orlando, the better all these other businesses will do as well. It's symbiotic.

What bubble are ppl talking about? Let's not forget we are barely out of a recession and Disney is posting these records.

Pixar was deal was done in 2005-6. This is 2015 and they didn't have any new movies within the quarter so they don't really phase into this. Lucas does help Disney right now the trailer alone pumped up their shares. Disney is doing so well but doing so little in the parks. By so little I mean new experiences not necessarily rides. Yes mymagic+, I like it think it was some what necessary but what about a new fireworks show or entertainment. Those things don't cost 500 million. I think Disney is affected by Disney doing better, it brings more people to Orlando. With more people in Orlando more people go to both parks. Both companies respectively are bringing people to Orlando. Disney of course also increases prices like no tomorrow.

rteetz · May 5, 2015

lugnut33 said:
A billion of that will go to Iger. <I'm kidding about the number, but you can bet he'll see a huge bonus this year>

Don't forget all the stock he has bought back as well. The man is setting up a nice retirement fund.

rteetz · May 5, 2015

DDLand said:
They did it again:http://www.hollywoodreporter.com/news/walt-disney-reports-quarterly-earnings-793487

"The Walt Disney Company on Tuesday reported improved financials for its fiscal second quarter that exceeded Wall Street expectations.

The entertainment conglomerate, led by chairman and CEO Bob Iger, posted an earnings improvement of 10 percent to $2.11 billion, or $1.23 per share, compared with $1.92 billion, or $1.08 per share, in the year-ago period. Wall Street had predicted earnings of $1.10 per share. Revenue rose 7 percent to $12.46 billion. Disney shares rose in pre-market activity."

It looks like the studio did well even without Frozen holdover. Slight contraction, but not serious.

Here is the press release:http://thewaltdisneycompany.com/sites/default/files/press-releases/pdfs/q2-fy15-earnings.pdf

Big numbers for Walt Disney Parks and Resorts. 6% Revenue growth, and an astounding 24% Operating Income growth. Whoa.

Here's the explanation: "Higher operating income at our domestic operations was due to increases in guest spending and volumes, partially offset by higher costs. Guest spending growth was primarily due to increases in average ticket prices at our theme parks and cruise line, increased food, beverage and merchandise spending and higher average hotel room rates. The increase in volumes was primarily due to attendance growth at Walt Disney World Resort and sales of vacation club units at Disney’s Polynesian Villas & Bungalows, partially offset by lower attendance at Disneyland Resort. Cost increases were due to labor and other cost inflation and higher pension and postretirement medical costs. "

Interesting that Walt Disney World is continuing to grow at a nice clip and Disneyland is weaker. I wonder if the Cars Land fever is dying down. It's also possible the measles outbreak effected this quarters bookings more, and they're still feeling that. Let's also not forget that 60 is going to be huge, and some may be putting off visits for that. Not to mention many critical attractions were offline.

Also of note is Hong Kong Disneyland contracted slightly.

For the number you've all been waiting for, Disney spent 606 million dollars on domestic CapEx during the quarter. That's compared to 1,054,000,000 they spent on international CapEx. If it makes you feel better, throughout the entire year Universal spent 671 million on both international and national CapEx.

I think with the cars fever over like you said that's why we will see Star Wars and marvel there first.

Record Disney 2nd Quarter Earnings

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