Disney reports record earnings

[crazy4wdw]

Disney reports record earnings

NEW YORK (CNNMoney) -- Disneyland may the "happiest place on earth," but it likely had some competition from corporate headquarters on Thursday after the Walt Disney company reported record-setting earnings.
By James O'Toole @CNNMoney November 10, 2011: 6:42 PM ET

Disney's (DIS, Fortune 500) net income for the quarter hit $1.1 billion, a 30% increase from last year, while revenues were up 7% to $10.4 billion.

Earnings per share were 58 cents, up from 43 cents a year ago. Analysts surveyed by Thomson Reuters had predicted the company would report earnings of 54 cents a share.

The news boosted Disney shares more than 2% in after-hours trading on Thursday, after they closed at $34.64 at the end of the trading day.

For the company's 2011 fiscal year, which ended on October 1, revenues increased 7% and net income was up 21%. This growth was driven by strong performances from the company's consumer products and parks and resorts segments, as well as by cable networks including ESPN and the Disney Channel.

"We are confident the Company is well-positioned to deliver long-term value for our shareholders with our focus on quality content, compelling uses of technology and global asset growth," Disney President and CEO Robert Iger said in a statement.

Over the past five years, the company's stock has outperformed most of its media rivals, including News Corp. (NWSA, Fortune 500), CBS (CBS, Fortune 500) and Time Warner (TWX, Fortune 500), the parent company of CNNMoney.

 

[crazy4wdw]

Additional details here: http://corporate.disney.go.com/corporate/pdfs/Q411_PR_FINAL.pdf

 

[jimmytammy]

Glad as a shareholder that things went well...but as a fan will be even happier to see them re-invest some of that profit into WDW and Disneyland. Now that would make me happy!!

 

[Peter Pirate 2]

well...but as a fan will be even happier to see them re-invest some of that profit into WDW and Disneyland. Now that would make me happy!!

Lol! good one.

 

[Donut23]

Glad as a shareholder that things went well...but as a fan will be even happier to see them re-invest some of that profit into WDW and Disneyland. Now that would make me happy!!

Don't bet the mortgage $$$ on it.

 

[XGrumpy1]

Revamped CA with Cars Land,

Redone Fantasyland at Magic Kingdom,

Avatarland at Animal Kingdom,

I think Disney is reinvesting in their parks!

 

[jimmytammy]

Hey I can dream cant I?

 

[nytimez]

Revamped CA with Cars Land,

Redone Fantasyland at Magic Kingdom,

Avatarland at Animal Kingdom,

I think Disney is reinvesting in their parks!

Avatar, should they fully follow through with this, shows they're still willing to spend big in Florida. However, they need to stop this nickel-and-dime nonsense they're learned to specialize in, removing and eliminating performers and characters and getting rid of many of the things that added a little value to your ticket price.

 

[Peter Pirate 2]

Revamped CA with Cars Land,

Redone Fantasyland at Magic Kingdom,

Avatarland at Animal Kingdom,

I think Disney is reinvesting in their parks!

No offense, but I knew one of you guys would show up.

DCA is just fixing an earlier made HUGE mistake(they basically painted themselves into a corner). Fantasy Land isn't really shaping up to be much, now is it? Avatar? Well, there is hope but at this point it's just hope.

 

[Peter Pirate 2]

A single day entry is now $85.00!!! How high can they possibly go with this silliness before seeing a backlash?

 

[Backstage_Gal]

A single day entry is now $85.00!!! How high can they possibly go with this silliness before seeing a backlash?

What's the price of a good broadway production? Or concert? Or a baseball or football game that all last 2 hours?

You get an entire day at Disney for the same money! Or cheaper if you go multiple days.
I don't think there is any price/value comparison.

 

[skiingfast]

What's the price of a good broadway production? Or concert? Or a baseball or football game that all last 2 hours?

You get an entire day at Disney for the same money! Or cheaper if you go multiple days.
I don't think there is any price/value comparison.

Good point. It's cheaper than skiing for me.

 

[Cricket2]

A single day entry is now $85.00!!! How high can they possibly go with this silliness before seeing a backlash?

Who pays $85? That price exists as a penalty ticket or a "The Price Is Right" SMRP to start from.

 

[Peter Pirate 2]

What's the price of a good broadway production? Or concert? Or a baseball or football game that all last 2 hours?

You get an entire day at Disney for the same money! Or cheaper if you go multiple days.
I don't think there is any price/value comparison.

My Opinion:

1. Good Broadway show is a much more quality product.
2. Concert. They are so over priced I won't go.
3. Baseball is more like 4 hours and we usually pay $22 - 32 per ticket (much cheaper).
4. Football. Not familiar with specifics.

The point is we wll always see things differently but Disney prices have certainly exploded well above the inflation rate. If you think a one day, one park ticket is worth it reasonable, that is truly amazing to me.

 

[Horace Horsecollar]

Who pays $85? That price exists as a penalty ticket or a "The Price Is Right" SMRP to start from.

Actually, plenty of people are neither annual passholders nor vacationers who buy 7+ day Park Hoppers for week+ stays at WDW (or Disneyland).

There are no discounts for 1 day or 2-day tickets, and 2-day tickets cost almost twice as much as 1-day tickets.

A family of 4 can easily spend $500 for a 1-day visit, considering tickets, parking, and lunch. Or $1000 for 2 days!

Essentially, The Walt Disney Company is telling ordinary, casual visitors to stay away. The parks seem to be targeting "Disney true believers" and those for whom $500 or $1000 is chump change.

Perhaps it's good business.

But business practices that reduce the size of a company's market base -- relying on fewer and fewer customers to spend more and more money -- can be dangerous and can ultimately lead to a downward spiral.

 

[Peter Pirate 2]

Actually, plenty of people are neither annual passholders nor vacationers who buy 7+ day Park Hoppers for week+ stays at WDW (or Disneyland).

There are no discounts for 1 day or 2-day tickets, and 2-day tickets cost almost twice as much as 1-day tickets.

A family of 4 can easily spend $500 for a 1-day visit, considering tickets, parking, and lunch. Or $1000 for 2 days!

Essentially, The Walt Disney Company is telling ordinary, casual visitors to stay away. The parks seem to be targeting "Disney true believers" and those for whom $500 or $1000 is chump change.

Perhaps it's good business.

But business practices that reduce the size of a company's market base -- relying on fewer and fewer customers to spend more and more money -- can be dangerous and can ultimately lead to a downward spiral.

Thanks Horace.

As an addendum, Disney no lo longer looks at us as "guests" as in the old days, they simply see us as walking wallets filled with money that they need to separate us from. It may be good business but it certainly IS NOT magical in any way, shape or form.

 

[padawans]

When we lived in So Cal we always bought one day tickets to Disneyland. Now when we visit my inlaws in So cal we don't even bother going. Its too expensive for a day. My inlaws had a family tradition of going every christmas eve all 50 of them, but stopped about 10 years ago when prices got out of control. Our trips to wdw are always 10+ days, and I feel like its a descent value for my money. Disneyland still get a lot of local one day business, but I think people that live in Cali are used to paying ridiculous prices for everything so it doesn't phase them.

 

[mickeysbestfriend]

A single day entry is now $85.00!!! How high can they possibly go with this silliness before seeing a backlash?

You get a pretty good bang for your buck at Disney. It sounds expensive but who goes for one day? Multi-day tickets can bring the cost down significantly.

Compare Disney to all the other parks and they are priced right.

JMO

 

[Horace Horsecollar]

You get a pretty good bang for your buck at Disney. It sounds expensive but who goes for one day? Multi-day tickets can bring the cost down significantly.

Compare Disney to all the other parks and they are priced right.

JMO

It sounds expensive because it is expensive.

As I wrote in this thread, not only are single-day visits expensive for families, but so are two- and three-day visits. For short visits, Disney is catering to families who can drop $500, $1000, or $1500 on a one-, two, or three-day visit -- just for admission, parking, and lunch.

The high daily price for shorter visits undoubtedly encourages some visitors to plan longer Disney vacations -- but it's likely that far more potential visitors simply eliminate WDW and Disneyland from their plans.

There was a time in Southern California when it seemed as if everyone went to Disneyland around once a year. It now seems as if most residents never go, but Disneyland annual passholders go dozens of times each year. Maybe that's good business, but I'm not so sure.

Remember that Disney parks really aren't in the business of competing with regional amusement parks. They're competing with all other leisure destinations, including cities, National Parks, zoos, museums, beaches, and historic sites.