Disney gave the street a nice surprise when their first quarter earning came in at $0.15/share versus a consensus estimate of $0.10/share. They said they were pleased given the circumstances, but know these results won't cut it longer-term
Not many take-aways from the earning's call. Comments about first quarter results for the Parks:
WDW - Attendance was down 20%. Hotel occupancy off a little less than that. Currently still running about 10-15% lower. People are not booking as far in advance so difficult to tell how the summer season is looking. International visitors still very soft.
DL Didnt quote attendance, only comment was per capita spending was down 10%.
They were pleased that cost reductions at the parks came faster than expected. Eisner said the great thing is they were able to make these custs with no impact on service quality, and that many of these reductions would be permanent. When attendance rebounds the parks will be even more profitable than before. Also, said that their share had increased during this time so they were doing better than competitors and expect they will keep this gain when things improve.
Strategy is to sit and wait for the rebound to happen. In talking about the future they mentioned Studios Paris opening, Bugs Town at DCA, and Mission:Space (they keep forgetting to mention Dino-Rama?).
Misc.
There was a question about when they would move on a new Pixar deal. Eisner said there was plenty of time, with 3 movies and 2 sequels still left to go. He was sure at some point they will talk about extending the deal. Implied that Pixar movies are very profitable for them.
The one bright spot appears to be the cable properties which were up about 20%. The broadcast side was off about 20% (sales), and has gone into the RED. If you combine both the Broadcast and Studios operations, than about 50% of the company is not providing any real return for them.
Not many take-aways from the earning's call. Comments about first quarter results for the Parks:
WDW - Attendance was down 20%. Hotel occupancy off a little less than that. Currently still running about 10-15% lower. People are not booking as far in advance so difficult to tell how the summer season is looking. International visitors still very soft.
DL Didnt quote attendance, only comment was per capita spending was down 10%.
They were pleased that cost reductions at the parks came faster than expected. Eisner said the great thing is they were able to make these custs with no impact on service quality, and that many of these reductions would be permanent. When attendance rebounds the parks will be even more profitable than before. Also, said that their share had increased during this time so they were doing better than competitors and expect they will keep this gain when things improve.
Strategy is to sit and wait for the rebound to happen. In talking about the future they mentioned Studios Paris opening, Bugs Town at DCA, and Mission:Space (they keep forgetting to mention Dino-Rama?).
Misc.
There was a question about when they would move on a new Pixar deal. Eisner said there was plenty of time, with 3 movies and 2 sequels still left to go. He was sure at some point they will talk about extending the deal. Implied that Pixar movies are very profitable for them.
The one bright spot appears to be the cable properties which were up about 20%. The broadcast side was off about 20% (sales), and has gone into the RED. If you combine both the Broadcast and Studios operations, than about 50% of the company is not providing any real return for them.