DIS Shareholders and Stock Info ONLY

[Mikey15]

The thing that concerns me the most is that they plan on cutting capex in the domestic parks by 700 million dollars. That's not good with Epic Universe opening soon.

“Cutting” or projects finishing though?

With Tron done and Epcot close, multiple big ticket rides launched in the last fiscal or two, what’s next? What’s the capex on Tiana in two parks compared to Guardians and Tron?

Not that i disagree about Epic Universe shaking things up significantly. Average days at Disney per vacationer is about to go down.

 

[mom2rtk]

“Cutting” or projects finishing though?

With Tron done and Epcot close, multiple big ticket rides launched in the last fiscal or two, what’s next? What’s the capex on Tiana in two parks compared to Guardians and Tron?

Not that i disagree about Epic Universe shaking things up significantly. Average days at Disney per vacationer is about to go down.

I'd be shocked if average days weren't down already. I know ours are.

 

[wabbott]

Limiting park capacity is not a good business plan, imo. I understand doing it to prevent park overcrowding and spoiling the guest experience. Here is what that means in real business terms.

You have paying customer wanting to spend money to buy your product, yet you don't expand "production" to meet that demand. And it's the highest margin product - by a large factor - that you sell company wide. So the customers go elsewhere - Universal, or other parks.

I just don't agree with that strategy at all.

 

[wabbott]

https://www.fool.com/earnings/call-...hoo-host&utm_medium=feed&utm_campaign=article

Walt Disney (DIS) Q1 2023 Earnings Call Transcript

 

[Brocktoon]

From what I have heard is ESPN does very well profit wise

Disney will keep ESPN around as it's a potential monster in the sports betting industry.

 

[RivShore]

Bob (on CNBC) thinks general entertainment streaming is too crowded and does not like it as a business, sure sounds like a Hulu sale could be on the table.

 

[HokieRaven5]

Activist investor Nelson Peltz declares Disney proxy fight is over after Iger unveils restructuring
Nelson Peltz declared the proxy fight between his firm, Trian Fund Management, and Disney was over on Thursday following the company’s announced restructuring.

 

[AvidDisReader]

Disney will keep ESPN around as it's a potential monster in the sports betting industry.

This is correct. That is why they keep ABC as they also have a football package. I think the word used in business is synergy.

 

[RivShore]

Activist investor Nelson Peltz declares Disney proxy fight is over after Iger unveils restructuring
Nelson Peltz declared the proxy fight between his firm, Trian Fund Management, and Disney was over on Thursday following the company’s announced restructuring.

What the?!?!?!?!?

Wow, just wow. Bob 1.0 is the real deal, I guess!

 

[Jrb1979]

What the?!?!?!?!?

Wow, just wow. Bob 1.0 is the real deal, I guess!

Disagree. Here is 5 reasons why

1. Revenues up in parks ONLY because of line fees - something that is becoming universally detested by diehards and regular casuals. So what would it be if they didn’t have paid fastpsss? That’s not “growth” at all and it’s not sustainable
2. More bad sequels that dilute what they peddle.
3. Layoffs across the board. You might get a temp Wall Street bump but it’s not a sign of company strength/growth.
4. Any reduction in capex based on Disneys ledger can only be viewed as a red flag. Amusement assets stagnate/decay. That’s the deal with them if you don’t think one step ahead.
5. The D+ subscriber numbers are worrisome. So how you gonna make trillions? Charge more every month for that.

 

[GAN]

Activist investor Nelson Peltz declares Disney proxy fight is over after Iger unveils restructuring
Nelson Peltz declared the proxy fight between his firm, Trian Fund Management, and Disney was over on Thursday following the company’s announced restructuring.

Love how he makes it sound like Disney made all the moves "Peltz wanted them to make" . Iger simply swatted him away....

 

[GAN]

What the?!?!?!?!?

Wow, just wow. Bob 1.0 is the real deal, I guess!

I don't want to call anyone out, but there certainly were some doubters among us.....

 

[RivShore]

Disagree. Here is 5 reasons why

1. Revenues up in parks ONLY because of line fees - something that is becoming universally detested by diehards and regular casuals. So what would it be if they didn’t have paid fastpsss? That’s not “growth” at all and it’s not sustainable
2. More bad sequels that dilute what they peddle.
3. Layoffs across the board. You might get a temp Wall Street bump but it’s not a sign of company strength/growth.
4. Any reduction in capex based on Disneys ledger can only be viewed as a red flag. Amusement assets stagnate/decay. That’s the deal with them if you don’t think one step ahead.
5. The D+ subscriber numbers are worrisome. So how you gonna make trillions? Charge more every month for that.

I was referring to the proxy fight only - Bob squashed it within a few weeks. 2.0 could have never done that! 1.0 is very good at the relationship and presentation thing (see Pixar way back when). To have instilled enough confidence in Peltz that he drops the whole thing is impressive. That is all I was saying.

ETA: I'm still voting against the entire board.

 

[GAN]

Limiting park capacity is not a good business plan, imo. I understand doing it to prevent park overcrowding and spoiling the guest experience. Here is what that means in real business terms.

You have paying customer wanting to spend money to buy your product, yet you don't expand "production" to meet that demand. And it's the highest margin product - by a large factor - that you sell company wide. So the customers go elsewhere - Universal, or other parks.

I just don't agree with that strategy at all.

It has to be a balance between revenue and customer satisfaction ...if you jam the parks with every customer that wants to be there more people have a bad experience. More people with bad experiences go on discussion boards and promote the lousy time they had. Business 101.......

 

[HokieRaven5]

It has to be a balance between revenue and customer satisfaction ...if you jam the parks with every customer that wants to be there more people have a bad experience. More people with bad experiences go on discussion boards and promote the lousy time they had. Business 101.......

Yeah it’s a question of is what they are doing sustainable. As it stands they’ve been able to bring in less people than pre-Covid for over a year+ and earn a higher profit than ever before.

 

[Jrb1979]

Yeah it’s a question of is what they are doing sustainable. As it stands they’ve been able to bring in less people than pre-Covid for over a year+ and earn a higher profit than ever before.

That's cause of Genie+, LL and other upcharges. I'm not so sure how long guests will play that game.

 

[HokieRaven5]

That's cause of Genie+, LL and other upcharges. I'm not so sure how long guests will play that game.

Seem to be doing just fine so far, we’ll see what happens long term, anything is just speculative on it.

Waiting to see if Comcast charges per land access at Epic Universe similar to what they do in Tokyo with Super Nintendo Land. It’s out there as a possibility off of what Comcast has said publicly.

“The park is built so that you can come into one land, and not the whole park”

 

[RivShore]

Disagree. Here is 5 reasons why

1. Revenues up in parks ONLY because of line fees - something that is becoming universally detested by diehards and regular casuals. So what would it be if they didn’t have paid fastpsss? That’s not “growth” at all and it’s not sustainable
2. More bad sequels that dilute what they peddle.
3. Layoffs across the board. You might get a temp Wall Street bump but it’s not a sign of company strength/growth.
4. Any reduction in capex based on Disneys ledger can only be viewed as a red flag. Amusement assets stagnate/decay. That’s the deal with them if you don’t think one step ahead.
5. The D+ subscriber numbers are worrisome. So how you gonna make trillions? Charge more every month for that.

As for your list:
1) They clearly state volumes were up, meaning attendance was up and helped drive some revenue growth. I can attest to this, the parks have been packed on the most random January days like never before.
2) Very much agree - where is all that "creativity" he spoke of?
3) Not necessarily, with the reorg and dismantling of 2.0's org, it's to be expected. I would assume most of it is coming from the bloated and expensive production side where they want to reduce costs ASAP. Also the streaming tech side was probably fat as they launched around the world - time to trim that anyway.
4) This doesn't bother me "yet", it is only a reduction from current spend to next year spend - we knew nothing was in the pipeline for the immediate future, so why doesn't this make sense, as all the new builds finish up (Tron, Water, GoG, etc). They did not say it was now zero, still plenty of money to keep things from decaying.
5) I was actually shocked they gained in US considering the price increases, looked like most of the loss was from low rev. India subscribers. So not worrisome at all. What does worry us all I think, is how does this low margin business ever replace linear margins? Like you, I don't see how it does.

 

[Jrb1979]

Seem to be doing just fine so far, we’ll see what happens long term, anything is just speculative on it.

Waiting to see if Comcast charges per land access at Epic Universe similar to what they do in Tokyo with Super Nintendo Land. It’s out there as a possibility off of what Comcast has said publicly.

“The park is built so that you can come into one land, and not the whole park”

I can see Universal doing a combination of both for Epic Universe. You will have your main ticket price and one just for each land.

Right now Genie+ and LL are doing just fine. My concern is when they raise the price to closer to $50. You know that is eventually where its going.

 

[Brian Noble]

That's cause of Genie+, LL and other upcharges. I'm not so sure how long guests will play that game.

I've been around the Disneyana community for a long time. Every time something gets more expensive or (perceived) quality decreases, the refrain is predictable: "This time, they've gone too far! People will wise up and stop coming!"

It never happens.

That's not to say they couldn't go too far. They certainly could. But this is a company that is fanatical about measuring guest satisfaction, and this is not their first rodeo. It is possible that they understand the average guest's sentiment better than we do.

I'm not a betting man, but if I were, my money would be on the Mouse.