Disney Quarterly Earnings and Say goodbye to Disney Infinity

[lockedoutlogic]

Yeah imagine that. Let's see if them inflating everything maintains their revenue expectations. I'm sure the guys in the board room are like 'well we're still UP so who cares if attendance is down'.

Sadly...I believe they are

Which is 100% a dangerous/vulnerable position to put themselves in given other outstanding "issues"

 

[lockedoutlogic]

I *think* it means that there are 5% more reservations overall, but they are at 2% lower rates (price). Not sure though. If that's correct, it means they are not able to command quite the same rate although they are running slightly more full hotels. This could be due to people booking more lower-end resorts vs. higher end (including fewer Concierge-level bookings), discounting, etc. We don't know that part but can only speculate why.

My guess is that pricing has peaked due to the massive increases in the last 2-3 years. Maybe they can't keep pace especially on the higher-end properties.

There's been evidence for a few years that they can't keep up the pace of their increases...particularly with rack rooms and DVC contracts...

What really needs to happen? Is a pretty bold rejection of the upsell tickets...particularly the "old hours, new price" crap of late and the Christmas/Halloween parties 5 nights a Week.

If those start to falter revenue will flatten out and they'll want Iger on a spit.

 

[lockedoutlogic]

I *think* it means that there are 5% more reservations overall, but they are at 2% lower rates (price). Not sure though. If that's correct, it means they are not able to command quite the same rate although they are running slightly more full hotels. This could be due to people booking more lower-end resorts vs. higher end (including fewer Concierge-level bookings), discounting, etc. We don't know that part but can only speculate why.

My guess is that pricing has peaked due to the massive increases in the last 2-3 years. Maybe they can't keep pace especially on the higher-end properties.

It's not "concierge" (a laughable term)...it's that they outshot their default rack rates for the deluxe rooms almost across the board.

It's not hard getting a room at...well...ANY of them.

Snoop around on their website and check...I do often.

 

[mshanson3121]

Big news out of the quarter closing today after stocks closed for today. Disney announced they are exiting the video game business.

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

https://twitter.com/cnbcnow/status/730135209744715776

http://diskingdom.com/2016/05/10/disney-infinity-ceases-production/

http://www.laughingplace.com/w/articles/2016/05/10/disney-q2-2016-earnings-call-live-blog/

Well that blows. My kids love Infinity.

 

[jtowntoflorida]

Article from the Orlando Sentinel today had some additional attendance and hotel occupancy details: http://www.orlandosentinel.com/business/tourism/os-disney-earnings-20160510-story.html

Of note:

"Per-guest spending at the domestic theme parks jumped 8 percent. Per-room spending at hotels increased 5 percent. Hotel occupancy declined 1 percentage point to 88 percent.

"Domestic resort reservations are pacing up 5 percent so far this quarter, while booked rates are down 2 percent, Disney said."

Also interesting: "Overall, other theme park companies with an Orlando presence have also seen attendance slowdowns."

I've been reading some news about the stock also, and most analysts/sources are seeing attendance as stable, and theme parks not a problem. So, I fear things will have to get worse for Disney to take notice to the kinds of concerns we have here on the boards.

Comcast released its results a few weeks ago, and they reported stable park attendance, and noted in particular the beneficial timing of spring break, with Easter falling entirely in the month of March. None of the theme park operators are going to be getting an Easter break bump in attendance in April this year, and they'll only have a couple of weeks of peak summer season in June to bolster attendance. It will certainly be interesting to see what happens next quarter.

Disney is such a diversified company that its results typically help predict overall discretionary spending, which is why the markets reacted like they did to the results yesterday. I think people are holding their breath to see if this is a Disney issue, or a wider economic issue. Hopefully, it's just a Disney issue.

 

[Tekneek]

I knew something was up when the pace of discount offers and PIN codes picked up. We've literally been receiving them every week for a while now.

Disappointed overall with the decisions being made and how the low rung employees are being forced to pay for the terrible decisions by upper management. Yeah, I know that is how it works, but I am also allowed to be irritated with a bunch of golden parachute suits making others suffer the consequences of their bad management. Clearly the shine is off of this management team and Staggs may have dodged a bullet by not having to inherit this.

 

[manning]

I assume that is global hotel occupancy, correct? I feel like I've heard recently the Florida hotels were running at rather high occupancies in general

At what discounts?