Disney Quarter 1 2020 Earnings Report

[mshanson3121]

I think Pandora exceeded many people’s expectations though. Maybe not beating Potter but it certainly gave a huge bump to AK. Either way we all win in this situation.

I had 0 interest in Pandora, was really disappointed that was the direction they went. And then absolutely fell in love with it the second we stepped foot. It was stunning and beautiful. We haven't done FoP yet, but the kids loved Na'Vi. Now we've never done HP, so I can't compare the two, but... IMO, it would have to be really well done to beat Pandora.

 

[firefly_ris]

I think Pandora exceeded many people’s expectations though. Maybe not beating Potter but it certainly gave a huge bump to AK. Either way we all win in this situation.

I am not an enormous Avatar fan (it's OK, I've watched it twice I think), but the setting of Pandora hits all the right aesthetic notes with me -- nature, a bit of fantasy mixed in with it, and they pulled it off really really well. The night lighting, FoP and Na'vi, their really decent quick service, etc. If they ever got one more attraction in there it's golden. I love Star Wars movies but I'm someone who would rather be walking around amongst pretty trees and exaggerated "alien" plants than the dusty, depressing looking Batuu (which they also did a great job with aesthetically, it's just I like and enjoy the nature vibe a lot more).

 

[RivShore]

A good article on the positives and negatives of the Q1 report along with analysts takes...

https://www.marketwatch.com/story/d...takes-off-2020-02-05?siteid=yhoof2&yptr=yahoo

 

[CastAStone]

A good article on the positives and negatives of the Q1 report along with analysts takes...

https://www.marketwatch.com/story/d...takes-off-2020-02-05?siteid=yhoof2&yptr=yahoo

Thanks for posting. Good read.

 

[RivShore]

Thanks for posting. Good read.

No problem!

Glad to see some investor discussion on the Dis.

Question for those of you that pay attention to the company and the stock, have you ever seen a reconciliation of the Fox purchase? The headline purchase price was $71B but they have divested a ton of assets that came over from Fox and I was curious what the real net cost of the purchase was.

 

[Heather07438]

From an investor Standpoint, Iger has done his job and done it well. ROI is extremely high and value for that investment is positive. I have a feeling, and it is just an opinion, Iger knew that to reinvigorate the US parks (WDW in particular), they had to get more working capital to do everything necessary. Early on he focused on what he knows, media. And how to maximize the $ there in order to create a chest of money to then move toward park expansion and improvement, overall resort improvement. Hard to say that his plan has failed when you look at the changes/improvements ( set aside the hatred for IPs) in the last and coming few years and none of that couldve been accomplished without boosting media to the point the company had excess funding to work with.

FWIW I still think we are minimum 10-15 years from a new gate in WDW

I'd love a 5th gate! But yeah, not expecting that until 2030+ or possibly never in Orlando. Looks like they're continuing to expand each of the 4 parks into 2-day parks first before ever moving on to another gate. Improve and grow what already exists.

 

[Brianstl]

Resort occupancy at domestic hotels at 92% for the quarter.

International parks down a bit due to Hong Kong.

Disney is preparing for a 2 month closure of Chinese parks due to Coronavirus.

Domestic park attendance up 6% for the quarter

Domestic park attendance was only up 2% for the quarter according to the supplemental report filed with the SEC. See page 42 of the report linked here https://otp.tools.investis.com/clie...gId=13885927&Cik=0001744489&Type=PDF&hasPdf=1

Admission were up 6.9%, but that is the money generated by ticket sales. A footnote on page 41 states that "The increase in theme park admissions revenue was due to an increase of 7% from higher average ticket prices."

Room occupancy actually declined from the year prior when it was at 94%.

All the increases in income and revenue are the result of higher ticket prices and higher food & beverage prices.

I got to think Disney a year ago was expecting bigger numbers than this with SWGE being open.

 

[Brianstl]

Thank you SWGE and RotR

They really didn't drive an attendance increase.