Record Disney 2nd Quarter Earnings

lockedoutlogic · May 5, 2015

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

Ahhhh...the bigger picture is not as evident - it seems.

College debt in the US is near 2 trillion dollars... There's no money to pay it.

Consumer credit debt is about the same... Same scenario there.

Brazil - whos only had credit since about 1990 - is leveraged and In danger of collapse from almost any reason (there might be a direct wdw tie in here)

The behemoth banks are speculating/packaging debt as investments again... Which is what almost took down our economy...there's just simply too much easy commission money there for all the suits to go "hands off"

That is now fueling real estate again...where people make the mistakes of getting bold. The end result doesn't work unless we stick to the model under glass Steagall...so pre 1998 basically.

China is suffering a manufacturing slide...that might be a bit of an issue since they manufacture just about everything.

The us stock market is on steroids and now the movers and shakers are starting to get nervous...the people with real money (who don't need it ) lost about 50% of their wealth in 2008-09...they made 300% back... But whatever. This time they'll pull the cord instead of sinking with the ship. Fool me once.

Europe is kinda like a carnival cruise adrift in the Mediterranean... They want to get back on solid ground but they just don't know how to fix the engine.

And Russia... Oh dear...has been so racked by the Saudi planned depression of light Arabic crude prices (oil and gasoline in laymans terms) - along with mostly Canada and the US (the real targets)... That they could start getting desperate. That's trouble soufflé.

So "what bubble" is relative. The 20th century post 1945 had known components to the formulas...those have been largely discarded in favor of "new math" for the last 20 years. We can thank the university of Chicago for that.

As far as Disney - the us public perception is that times are good... That is the path to Disney profits. They benefit from the perception of prosperity as much as any corporation on earth. Pretty simple, actually. Unlike this bubble talk.

rteetz · May 5, 2015

485 million in share buy backs this quarter it seems

lockedoutlogic · 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>

I'm guessing he'll see " impressive growth" in that department right up until he turns in his keys to the corner office next to sneezy in 2018

MrInfinity · May 5, 2015

rteetz said:
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.

Lucas is such a massive prospect. Do you see how Disney is plugging this so early... they took the LEGO Star Wars and SW Clone Wars from CN (which must have killed CN, as it was the most popular shows they had), and now they're running Yoda Chronicles and Rebels on their network? This is hooking the next crowd of 3-9 year olds onto Star Wars. This way, when the sequel hits in December, it is not going to be a case of 40-somethings going to say how it's not as good as the old movies, but rather, a new generation of kids chomping at the bit to see this -- and then go to Disney World and live it. I think SW is going to crush all movie releases -- ever. Already, Avengers 2 came in what... 3rd or something? That was pretty good.

This is why Disney is so set apart from Universal. While Uni has HP, and I do want to go see this, they are not constantly filling the channel with new HP content targeted at the next generation. Toy Story? This is timeless. Just when we thought TS3 was going to be the last, we got a short last year, and now a new movie coming. Nemo, Frozen, Star Wars, Marvel, these are all going to be timeless that Disney can keep reinventing. Even the classics like Cinderella and Snow White... now they're running the 7D on Dis Jr... bringing back the Dwarves for a modern youngster, instead of the dated movie from the 60's... And they've reinvented Peter Pan in the form of Jake and the Neverland Pirates. Also huge in that preschool age. They are just so good at everything they do, and how they integrate and cross promote their brands.

What about a new fireworks show or entertainment? They just completely redid the MK parade. And they have the night lights coming to the AK. These are pretty massive new general entertainment things that will define these parks for years to come.

Disney has increased prices, but I think they're appropriate. They are definitely in line w other theme parks, and the overall vacation expense for a week at Disney is comparable to most other vacations that involve doing a major attraction the whole time.

And altho Pixar did not have anything new in this quarter above, they have Inside Out breaking this summer (which will be huge) and a pipeline of built-in hits... Nemo 2 and Incredibles 2 at least! There is so much content coming down the line that Disney is going to have these record-breaking quarters for a long time.

rteetz · May 5, 2015

Iger says they have grand plans for Star Wars merchandise. But they are first focused on the film.

Shanghai opens in about a year (rumored for May 8th, 2016) details revealed in summer

Disney is impressed with daredevil the marvel based netflix show and have gone ahead for a second season

Staggs said frozen merch is up 10 times compared to same period last year.

Poly DVC is having a positive effect on earnings

Staggs says it's hard to determine the earnings impact of MyMagic+.

Half of the WDW guests are using magicbands

Iger teased Star Wars coming to disney infinity (which was already leaked)

Iger again teases strong potential for Star Wars in parks

rteetz · May 5, 2015

MrInfinity said:
Lucas is such a massive prospect. Do you see how Disney is plugging this so early... they took the LEGO Star Wars and SW Clone Wars from CN (which must have killed CN, as it was the most popular shows they had), and now they're running Yoda Chronicles and Rebels on their network? This is hooking the next crowd of 3-9 year olds onto Star Wars. This way, when the sequel hits in December, it is not going to be a case of 40-somethings going to say how it's not as good as the old movies, but rather, a new generation of kids chomping at the bit to see this -- and then go to Disney World and live it. I think SW is going to crush all movie releases -- ever. Already, Avengers 2 came in what... 3rd or something? That was pretty good.

This is why Disney is so set apart from Universal. While Uni has HP, and I do want to go see this, they are not constantly filling the channel with new HP content targeted at the next generation. Toy Story? This is timeless. Just when we thought TS3 was going to be the last, we got a short last year, and now a new movie coming. Nemo, Frozen, Star Wars, Marvel, these are all going to be timeless that Disney can keep reinventing. Even the classics like Cinderella and Snow White... now they're running the 7D on Dis Jr... bringing back the Dwarves for a modern youngster, instead of the dated movie from the 60's.

What about a new fireworks show or entertainment? They just completely redid the MK parade. And they have the night lights coming to the AK. These are pretty massive new general entertainment things that will define these parks for years to come.

Disney has increased prices, but I think they're appropriate. They are definitely in line w other theme parks, and the overall vacation expense for a week at Disney is comparable to most other vacations that involve doing a major attraction the whole time.

And altho Pixar did not have anything new in this quarter above, they have Inside Out breaking this summer (which will be huge) and a pipeline of built-in hits... Nemo 2 and Incredibles 2 at least! There is so much content coming down the line that Disney is going to have these record-braking quarters for a long time.

Yes I understand Star Wars and what it means for the company it's huge I'm not denying that. Merchandise alone is big for them. Avengers 2 came in second to Avengers 1...

Well HP seems to be timeless as well at least for now, they are creating a spin off for HP as we'll don't forget universal has marvel theme park rights. And there are rumors they are planning to run with that.

The MK parade was over 10 years old, MK used to get new parades all the time. How bout that aging MSEP that needs to go. Also AK has never had a night time show this will bea first for that park. Wishes is over 10 years old as well as illuminations. Disney is doing big shows in other parks just not WDW.

Finding dory and incredibles 2 aren't this year. Brad bird just started writing the script for incredibles 2. Dory is slated for next year I believe. I agree that they have great content coming up.

rteetz · May 5, 2015

P&R revenue was up 5.6% the lowest since 2009/10

Operating income up 23.9% best in two years

Domestic P&R depreciation $367 million
Domestic P&R capital expenditures $289 million

$416 million spent on international P&R capex

Combined P&R capex 20.8% Disney is investing but mostly overseas

Numbers from Parentsof4 at wdwmagic

lockedoutlogic · May 5, 2015

rteetz said:
Iger says they have grand plans for Star Wars merchandise. But they are first forced on the film.

Shanghai opens in about a year (rumored for May 8th, 2016) details revealed in summer

Disney is impressed with daredevil the marvel based netflix show and have gone ahead for a second season

Staggs said frozen merch is up 10 times compared to same period last year.

Poly DVC is having a positive effect on earnings

Staggs says it's hard to determine the earnings impact of MyMagic+.

Half of the WDW guests are using magicbands

Iger teased Star Wars coming to disney infinity (which was already leaked)

Iger again teases strong potential for Star Wars in parks

I tried to filter out the background noise...

Did it work?

lockedoutlogic · May 5, 2015

rteetz said:
P&R revenue was up 5.6% the lowest since 2009/10

Operating income up 23.9% best in two years

Domestic P&R depreciation $367 million
Domestic P&R capital expenditures $289 million

$416 million spent on international P&R capex

Combined P&R capex 20.8% Disney is investing but mostly overseas

Numbers from Parentsof4 at wdwmagic

If true...those numbers shouldn't be looked at favorably in the prism of investment in wdw parks...

rteetz · May 5, 2015

lockedoutlogic said:
If true...those numbers shouldn't be looked at favorably in the prism of investment in wdw parks...

Parentsof4 is the numbers guy over at wdwmagic you would probably like his work. His info is usually spot on.

Josh Hendy · May 5, 2015

lockedoutlogic said:
If true...those numbers shouldn't be looked at favorably in the prism of investment in wdw parks...

Domestic P&R depreciation $367 million ... Domestic P&R capital expenditures $289 million ... I'm not an accountant but do those numbers mean that parks are not being patched up/renewed as fast as they are rusting?

P&R revenue was up 5.6% the lowest since 2009/10 ... seems to say, "We tried spending as little as possible on the parks and jacking prices as high as we dared and it's just not working!"

DDLand · May 5, 2015

Josh Hendy said:
Domestic P&R depreciation $367 million ... Domestic P&R capital expenditures $289 million ... I'm not an accountant but do those numbers mean that parks are not being patched up/renewed as fast as they are rusting?

P&R revenue was up 5.6% the lowest since 2009/10 ... seems to say, "We tried spending as little as possible on the parks and jacking prices as high as we dared and it's just not working!"

You missed the 24% increase in operating income.

wallrock · May 5, 2015

MrInfinity said:
Lucas is such a massive prospect. Do you see how Disney is plugging this so early... they took the LEGO Star Wars and SW Clone Wars from CN (which must have killed CN, as it was the most popular shows they had), and now they're running Yoda Chronicles and Rebels on their network? This is hooking the next crowd of 3-9 year olds onto Star Wars. This way, when the sequel hits in December, it is not going to be a case of 40-somethings going to say how it's not as good as the old movies, but rather, a new generation of kids chomping at the bit to see this -- and then go to Disney World and live it. I think SW is going to crush all movie releases -- ever. Already, Avengers 2 came in what... 3rd or something? That was pretty good.

This is why Disney is so set apart from Universal. While Uni has HP, and I do want to go see this, they are not constantly filling the channel with new HP content targeted at the next generation. Toy Story? This is timeless. Just when we thought TS3 was going to be the last, we got a short last year, and now a new movie coming. Nemo, Frozen, Star Wars, Marvel, these are all going to be timeless that Disney can keep reinventing. Even the classics like Cinderella and Snow White... now they're running the 7D on Dis Jr... bringing back the Dwarves for a modern youngster, instead of the dated movie from the 60's... And they've reinvented Peter Pan in the form of Jake and the Neverland Pirates. Also huge in that preschool age. They are just so good at everything they do, and how they integrate and cross promote their brands.

What about a new fireworks show or entertainment? They just completely redid the MK parade. And they have the night lights coming to the AK. These are pretty massive new general entertainment things that will define these parks for years to come.

Disney has increased prices, but I think they're appropriate. They are definitely in line w other theme parks, and the overall vacation expense for a week at Disney is comparable to most other vacations that involve doing a major attraction the whole time.

And altho Pixar did not have anything new in this quarter above, they have Inside Out breaking this summer (which will be huge) and a pipeline of built-in hits... Nemo 2 and Incredibles 2 at least! There is so much content coming down the line that Disney is going to have these record-breaking quarters for a long time.

Don't automatically assume that IP acquisition means a presence in the parks. Disney's purchase of LucasArts was a home run on the media side, and we can count on them to take full advantage. We're going on two and a half years of Mickey being the Master Of The Force and we see a media schedule far into the future. Nothing yet on the theme park front, unless you count the increased number of toys in the gift shops. I was there this past weekend and noticed that practically every gift shop I came across had Star Wars material inside. Wanna bet that the volume will increase to a near frenzy by, say, December?

With Marvel, I'm betting that Disney is more than happy with their relationship with Comcast. All Disney has to do is churn out the flicks and Comcast will churn out the rides. Comcast accepts the risk of construction/maintenance/liability. All Disney has to do is wait for their check to be cut.

This is part of the new Disney mentality - focus on the media output. If increased profits are to be had at the parks then raise the price of consumables. We've proven time and time again that we'll pay it.

lockedoutlogic · May 5, 2015

Josh Hendy said:
Domestic P&R depreciation $367 million ... Domestic P&R capital expenditures $289 million ... I'm not an accountant but do those numbers mean that parks are not being patched up/renewed as fast as they are rusting?

P&R revenue was up 5.6% the lowest since 2009/10 ... seems to say, "We tried spending as little as possible on the parks and jacking prices as high as we dared and it's just not working!"

Nah...depreciation is a normal
Way of gaining incentives/devaluating your assets. I don't look at those numbers as scary...

It rather slow growth and funneling money out of domestic....ahem....that are bad bad bad for us east coaster...

And Canadians, midwestens, central and South Americans, Western European, etc etc
Etc

lockedoutlogic · May 5, 2015

wallrock said:
Don't automatically assume that IP acquisition means a presence in the parks. Disney's purchase of LucasArts was a home run on the media side, and we can count on them to take full advantage. We're going on two and a half years of Mickey being the Master Of The Force and we see a media schedule far into the future. Nothing yet on the theme park front, unless you count the increased number of toys in the gift shops. I was there this past weekend and noticed that practically every gift shop I came across had Star Wars material inside. Wanna bet that the volume will increase to a near frenzy by, say, December?

With Marvel, I'm betting that Disney is more than happy with their relationship with Comcast. All Disney has to do is churn out the flicks and Comcast will churn out the rides. Comcast accepts the risk of construction/maintenance/liability. All Disney has to do is wait for their check to be cut.

This is part of the new Disney mentality - focus on the media output. If increased profits are to be had at the parks then raise the price of consumables. We've proven time and time again that we'll pay it.

Yep..."damn" as always...

lockedoutlogic · May 5, 2015

DDLand said:
You missed the 24% increase in operating income.

And once they pay the piper... That's walkaway profit...

So you see the dilemma from the parks perspective?

Record Disney 2nd Quarter Earnings

lockedoutlogic

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MrInfinity

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