Disney misses earning: hope this doesn't mean more cutbacks.

[07pilot4me]

http://www.cnbc.com/2016/05/10/disney-reports-q2-earnings-results-.html

"Parks and resorts sales of $3.93 billion also came in below the forecast of $4.03 billion."

so despite the price increases and cutbacks on staffing they still did not meet forecast. is Shanghai going to save the day? hope this doesnt mean more cutbacks or more price increases

 

[lalasmama]

. is Shanghai going to save the day?

Didn't read the original article, but this made me chuckle, as #ThanksShanghai is a pretty common hashtag when someone is ticked about cutbacks.... Maybe it will be a great surprise, and it will turn things around.

 

[GrandBob]

Am I the only one who has been thinking about how much they're shooting themselves in the foot on this? Service cutbacks with long lines has to eventually affect attendance, as people decide that it has become too much hassle for the price. Not to mention the fact that, when people are in line, they're not at restaurants, or buying souvenirs or snacks. I'm not at all surprised that they're seeing reduced gross income. I hope they figure it out pretty soon...

Bob

 

[longtimedisneylurker]

Am I the only one who has been thinking about how much they're shooting themselves in the foot on this? Service cutbacks with long lines has to eventually affect attendance, as people decide that it has become too much hassle for the price. Not to mention the fact that, when people are in line, they're not at restaurants, or buying souvenirs or snacks. I'm not at all surprised that they're seeing reduced gross income. I hope they figure it out pretty soon...

Bob

Is it reduced gross income we're talking about or just not making as much money as projected? Unfortunately it sounds like it's the foreign parks that aren't making as much money. Another article I read indicated that the domestic parks did increase profit. I, like you, wonder if there will ultimately be an impact to the domestic parks in terms of profits or attendance, but I don't think Disney is seeing anything like that yet. In fact, it sounds like they continue to pull in record crowds for any given time period at Disneyland.

I think where Disney is hurting a bit right now is in areas like ESPN and tv in general, and they also pulled out of the video game business entirely by canceling the Disney Infinity line. They seem to have decided it's not worth the risk to them to make their own games anymore and it's a win to just sell the licensing. Now they won't even have to worry if a product is any good or particularly successful; they will just take the licensing cut and let someone else deal with the rest.

 

[Minniesgal]

Actually they said footfall at the parks was down but spending was up so I don't think long lines are hurting profits.