Disney's 2013 Earnings

[jcb]

Parks and Resorts "solid" and "up."

DVC at Grand Floridian helped.

Attendance was "comparable" to prior years. Disney World up - Disneyland down but Rasulo attributes this to California Adventure driving higher results in prior year. The increase at WDW offset the decrease at DL.

 

[jcb]

Some other figures you don't see in the annual report.

Average per guest spending is up 4% over last year.

Occupancy and Reservation rates are comparable.

Current booking rates are up 5% over last year.

 

[jcb]

Rasulo is heading off capital expenditure questions.

2015 Capital spending will be up due to Shanghai Disney Resort. But Rasulo also notes Disney's share of Shanghai is 43% - so only in the upper hundred millions.

Expect flat (same as 2013) domestic capital expenditures for parks in 2015.

 

[jcb]

Questions being taken.

Magic Plus question - essentially when do we see results.

MP+"continuing to roll forward" to make it available to more guests. Now any guests in Disney hotel can use it.

Benefits to Disney are (1) greatly improves experience at parks and that will increase business - more guests or more time spent in the parks (2) easing some of the logistics of getting around the property - paying for things is easier and that permits guests to spend more on consumables, merchandise.

Expect it to be net positive and growingly positive in future years.

 

[disney david]

Jack you okay or going for a record oat in one thread number? Thanks for the updates

A blog to this could be bigger the. Disney release their quarterly report.

Did iger mention the impact chip and dale had va marry poppins in their results.

 

[jcb]

Another My Magic Plus question:

What are you spending capital on this year?

Finishing Fantasyland expansion and have underlying capital expenditures ongoing.

Starting to spend capital on Avatar. Think of Avatarland as Carsland. Carland was part of an overall reconnecting of DCA.

Avatar (and other changes) will be similar to Carsland in that it helps to convert Animal Kingdom into full day experience to be evening park.

Not sure AK fans are going to appreciate comparison of AK to DCA before Carsland.

 

[jcb]

First three questions are about capital expenditures and My Magic Plus.

This probably explains why share price was down 3% (investors not crazy about capital spending).

Now a question (to Iger) about the "arms race" between Disney and Universal in capital spending on parks.

Iger - Universal expansion started several years. "Jury is still out" on how much Comcast will spend at Universal.

Really??? Who is he kidding?

 

[mnra]

guess the animal kingdom where animals are important is going the way of the dinosauer

 

[jcb]

Jack you okay or going for a record oat in one thread number? Thanks for the updates

A blog to this could be bigger the. Disney release their quarterly report.

Did iger mention the impact chip and dale had va marry poppins in their results.

I'm probably pushing the disboards.com limits on consecutive posts.

I don't think Iger would recognize Chip and Dale if they dropped an acorn on him.

 

[jcb]

guess the animal kingdom where animals are important is going the way of the dinosauer

Wait a minute - I like Dinosaur.

 

[mnra]

so do i lol

 

[disney david]

I'm probably pushing the disboards.com limits on consecutive posts.

I don't think Iger would recognize Chip and Dale if they dropped an acorn on him.

I let the last one slide because I have a lot of respect for you. But I think chip and dale are his favorite character if he even knows that Disney has characters in the park.


When they ask him questions about universal he should go off and say that universal is in no way a threat.

 

[jcb]

China, ESPN and Pixar (no movie in 2014) on the minds in the last couple of questions.

 

[jcb]

Interesting non-parks point: Nielsen (tv ratings people) will start providing consumption rates for mobile apps. Disney needs this to gauge advertising prices.

Consumer products segment: Planes has been consumer merchandise "juggernaut." Disney Junior "on fire."

Apparently Rasulo went trick or treating this year.

 

[disney david]

Where Tom staggs he iger right hand man and next CEO.

 

[jcb]

Question about Netflix / Marvel deal - is it going to make Marvel a bigger brand?

Netflix lets Disney promote the thousands of Marvel characters that Disney could not make feature films about, though it may make films if Netflix shows are successful.

Iger also has to demonstrate that he knows about Twitter.

 

[jcb]

Merger and Acquisition question - is share repurchase a signal that there won't be a merger or acquisition in 2014?

Iger - "we are not cash hoarders" (reference to share repurchase) but don't take this as a signal that Disney is "out of the M&A business." M&A has been a growth opportunity for Disney. But emphasizes that this shouldn't be taken as a hint that some new M&A is imminent.

 

[jcb]

Cruise ship question -

When will Disney decide to add to cruise ship?

Iger: We are not currently contemplating adding to the fleet. Asia will eventually open up but doesn't expect it to open up in near term. Have "interesting opportunities" to expand operation of current fleet.

 

[jcb]

The last question was about ESPN and football so that's all the excitement for now.

Look for some attempt to wrap up these comments and the earnings statement, in a blog post that should go up later this evening.

I'm glad I recorded the earnings call so I can go back and listen to it if need be.