A few MyMagic+ tidbits from the quarterly earnings call

[BuckeyeBama]

I also think something that deserves emphasis is the fact that the status of MDE/FP+ was one of the first questions asked by the investor audience.

That indicates top-level interest in what some on these forums have described as a small part of the entire project just for the parks which is a small part of Disney overall.

But apparently, it's quite high on the list of concerns for investors.

Yes, but that is as much a result of the fact that the people on this call understand that emotion drives stock price as much, if not more than, actual profitability. Crazy, but something that must be taken into account.

Bad news comes in many forms. If Disney patrons are turned off by this new technology, it had better show improved margins.

 

[Shaden]

But the line about FP+ being used more than FP- is so simple it's stupid. Of course it is -- everyone gets 3 per day, no matter what. I can't tell you how many times I had a park day with no fp's at all... because I didn't need them. But you think I'll at least try to use my 3 per day -- you betcha

I agree, there are many ways to spin "FP+ being used more than FP-". There could be more people "using" it, by using it, they could mean registering for FP+s, not even actually using the FPs to skip lines. The total number of FPs used could have decreased, but they could still argue that FP+ is being used "more" than FP-.

Of course, FP+ could be being used more in total numbers as well. Hard to say, did they offer any hard stats/facts ?

 

[redrosesix]

I agree, there are many ways to spin "FP+ being used more than FP-". There could be more people "using" it, by using it, they could mean registering for FP+s, not even actually using the FPs to skip lines. The total number of FPs used could have decreased, but they could still argue that FP+ is being used "more" than FP-.

Of course, FP+ could be being used more in total numbers as well. Hard to say, did they offer any hard stats/facts ?

nope -- I found it generally very vague. Sugar coat this and that, don't talk about things that don't come up, etc. Generally the same as most earnings releases for industrial stocks. But not nearly as much double-talk as mining stocks (we are looking forward to the opportunity to cooperate with the new government = they kicked us out of the country and nationalized the mine)

 

[Laketravis]

I agree, there are many ways to spin "FP+ being used more than FP-". There could be more people "using" it, by using it, they could mean registering for FP+s, not even actually using the FPs to skip lines. The total number of FPs used could have decreased, but they could still argue that FP+ is being used "more" than FP-.

Of course, FP+ could be being used more in total numbers as well. Hard to say, did they offer any hard stats/facts ?

Same thought occurred to me when I heard him say that - define "used". I know a couple of app developers who claim hundreds of thousands of users but when I push them on it, that's how many people downloaded their app. They weren't talking about how many actually used it.

The unprecedented guest education effort currently being put forth by Disney combined with the inability to pick less than 3 FP's could literally increase "usage" by 20% alone if 60% of park guests now "use" FP+ as compared to previous figures from Disney that only 50% of guests used the paper system.

 

[Laketravis]

nope -- I found it generally very vague. Sugar coat this and that, don't talk about things that don't come up, etc. Generally the same as most earnings releases for industrial stocks. But not nearly as much double-talk as mining stocks (we are looking forward to the opportunity to cooperate with the new government = they kicked us out of the country and nationalized the mine)

Except for Rasulo's comment quantifying the actual cost of implementation for that quarter - I couldn't help but visualize Iger sitting across the table with a "Shut the hell up, you damn fool!" look on his face

 

[clsteve]

Except for Rasulo's comment quantifying the actual cost of implementation for that quarter - I couldn't help but visualize Iger sitting across the table with a "Shut the hell up, you damn fool!" look on his face

It's going to be tough to keep cannibalizing every ops budget for the FY without there being an adverse impact - especially with the high season coming up. Staffing, morale, inter and intra divisional pressures, it all adds up after awhile. And there's going to be specific pressure to get it in order for the next quarterly report, since there's visibility on it, now. All of this with off-site still to go.

 

[redrosesix]

It's going to be tough to keep cannibalizing every ops budget for the FY without there being an adverse impact - especially with the high season coming up. Staffing, morale, inter and intra divisional pressures, it all adds up after awhile. And there's going to be specific pressure to get it in order for the next quarterly report, since there's visibility on it, now. All of this with off-site still to go.

True. And since they're pulling from other park budgets it's just going to be bad all around -- the imagineers will be posting on their clandestine blogs etc. The studios is apparently more in trouble but they luckily have a blockbuster now and again to erase everyone's memories.

Disney is a very strange stock to follow since people have so many emotional ties to it, and it's so diverse. They need to be really careful since a successful MM+ was already cooked into the price and let's face it -- the total price tag for the NextGen project according to reasonable estimates ($1.5 b) is equivalent to their entire quarter's earnings. This is a lot of money if it doesn't work great. So while a lot of Disney guests may be ok with waiting through the testing phase for things to be improved, investors are fickle since there is always another place they can put their money.

 

[Laketravis]

This is a lot of money if it doesn't work great. So while a lot of Disney guests may be ok with waiting through the testing phase for things to be improved, investors are fickle since there is always another place they can put their money.

Bank of America / Merrill Lynch asked in regards to cost just how much more was there to go with MM+? The rising intonation of her question indicated sincere concern.

Rasulo was almost defensive, stated that "What we spend on MM+ and how we account for that I don't really want to get into that".

 

[clsteve]

Bank of America / Merrill Lynch asked in regards to cost just how much more was there to go with MM+? The rising intonation of her question indicated sincere concern.

Rasulo was almost defensive, stated that "What we spend on MM+ and how we account for that I don't really want to get into that".

1.5 bill vs. 400-500 mil to recoup investment on

A shockingly high percentage of op cost for the quarter.

It's important for some to realize that this is as much about the Analysts (and the streets) confidence in executive level management's ability to estimate a large project, execute the plan and complete the plan within a reasonable cost/time/ROI window.

As you pointed out, there was more emphasis than expected on MM+.

 

[Davey Jones II]

They're crowing about a measly 3000 person capacity increase thanks to MyMagic+? That's absolutely hilarious. As Robert Niles pointed out on another theme park site, they could have had the same result by adding an off-the-shelf spinner ride.

 

[hydrotony]

They're crowing about a measly 3000 person capacity increase thanks to MyMagic+? That's absolutely hilarious. As Robert Miles pointed out on another theme park site, they could have had the same result by adding an off-the-shelf spinner ride.

or ... "Niles"

 

[BuckeyeBama]

nm...

 

[Davey Jones II]

Corrected. I've been trying to fix that little typo, but my computer is incredibly slow today (just like every other day).