Disney Earnings Report - Theme Park Profits up 20%

[jcb]

At the risk of being accused of click-baiting, I'm leading with the traditional headline for earnings reports. Here is what the press release states regarding theme park earnings.

Parks and Resorts revenues for the quarter increased 7% to $4.0 billion, and segment operating income increased 20% to $687 million. Operating income growth for the quarter was due to an increase at our domestic operations, partially offset by a decrease at our international operations.
Higher operating income at our domestic operations was driven by increased guest spending and attendance, partially offset by higher costs and lower vacation club ownership sales. The increase in guest spending was primarily due to higher average ticket prices for theme park admissions and for sailings at our cruise line and increased food, beverage and merchandise spending. Higher costs reflected increased costs for MyMagic+ and the absence of an offset in the prior-year quarter from a property sale, partially offset by lower pension and postretirement medical costs. Decreased vacation club ownership sales reflected the prior-year success of The Villas at Disney’s Grand Floridian Resort & Spa, for which sales commenced at the end of the third quarter of fiscal 2013.

This is, of course, great for the bottom line. I mean, my goodness, operating income for the parks is up 20 percent for the year. This isn't a rebound figure, it shows some incredible revenue growth (and cost management) over the last year. (It probably also demonstrates why WDW was willing to increase the bargaining unit employees' hourly rates as much as it recently did.)

At the same time, if my memory is right, Disney executives have been saying that they expect that by the fourth quarter of FY 2014, MM+ would start making it money. This isn't a slam on MM+ per se, but it shows something isn't going as hoped and planned.

 

[jcb]

Also, I can't listen to the earnings conference call (which is currently underway) so I won't be providing a blow by blow recounting of it as I have done in the past.

I'll try to post a summary (or a link to someone else's summary) when I can.

 

[OKW Lover]

Thanks for posting this Jack. I had forgotten that today was the earnings call.

Disney stock hit an all time high of $92/share today.

 

[GAN]

Thanks for posting this Jack. I had forgotten that today was the earnings call. Disney stock hit an all time high of $92/share today.

The only question now is -when to sell!

 

[OKW Lover]

The only question now is -when to sell!

Always difficult to time the market. And if you sell now, can you find something else that will do as well?

 

[jcb]

http://www.orlandosentinel.com/business/os-disney-earnings-20141106-story.html

Article from OS on earnings conference call.

 

[AndyPok1]

At the risk of being accused of click-baiting, I'm leading with the traditional headline for earnings reports.

Was on a cruise this time. Didn't give me a chance