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Disney reported quarterly results. According to the linked article:
Sales at its theme parks and resorts rose 6% to nearly $3.6 billion, while profits rose 16% to $671 million, as guests spent more at its domestic parks and resorts during the Thanksgiving and Christmas holidays. Disney continues to roll out MyMagic+ at Walt Disney World and saw profits effected partially by investment in the new band that holds a guests theme park ticket, hotel room key, Fast Passes and credit card information.
Investments at the parks continue to pay off for Disney, said chief operating officer Jay Rasulo.
That includes the expansion of the Magic Kingdoms Fantasyland and Disneylands Cars Land, but also the roll out of the MyMagic+ bands.
The parks were able to accommodate 3,000 more guests in the Magic Kingdom per day because of MyMagic+, Iger said during the investor call, stressing the significance of the time period its busiest of the year and location, its most popular theme park.
The addition of more guests in the park will clearly have an impact on the bottom line of the company in the future, Iger said, without giving any details.
http://variety.com/2014/biz/news/frozen-thor-sequel-heat-up-disney-first-quarter-results-1201088331/
While I have read other comments by Mr. Iger that increased spending by Park guests may or may not have been a direct result of FP+, he is certainly maintaining that this is the expectation and reason for the $1B investment.
Let's do some math - and assume all increases are a result of FP+/MDE - then:
Increase profits at Parks went from (+/-) $580M to $670M = $90M per quarter.....$360M increase in projected profits for one year.
Further assuming that no increased efficiency comes from MDE/FP+, it will take less than 3 years for MDE/FP+ to break even.
And besides the complaints from luddites & former FP- commandos, I am inclined to believe most people prefer FP+ for the host of reasons that many people have previously described.
Sales at its theme parks and resorts rose 6% to nearly $3.6 billion, while profits rose 16% to $671 million, as guests spent more at its domestic parks and resorts during the Thanksgiving and Christmas holidays. Disney continues to roll out MyMagic+ at Walt Disney World and saw profits effected partially by investment in the new band that holds a guests theme park ticket, hotel room key, Fast Passes and credit card information.
Investments at the parks continue to pay off for Disney, said chief operating officer Jay Rasulo.
That includes the expansion of the Magic Kingdoms Fantasyland and Disneylands Cars Land, but also the roll out of the MyMagic+ bands.
The parks were able to accommodate 3,000 more guests in the Magic Kingdom per day because of MyMagic+, Iger said during the investor call, stressing the significance of the time period its busiest of the year and location, its most popular theme park.
The addition of more guests in the park will clearly have an impact on the bottom line of the company in the future, Iger said, without giving any details.
http://variety.com/2014/biz/news/frozen-thor-sequel-heat-up-disney-first-quarter-results-1201088331/
While I have read other comments by Mr. Iger that increased spending by Park guests may or may not have been a direct result of FP+, he is certainly maintaining that this is the expectation and reason for the $1B investment.
Let's do some math - and assume all increases are a result of FP+/MDE - then:
Increase profits at Parks went from (+/-) $580M to $670M = $90M per quarter.....$360M increase in projected profits for one year.
Further assuming that no increased efficiency comes from MDE/FP+, it will take less than 3 years for MDE/FP+ to break even.
And besides the complaints from luddites & former FP- commandos, I am inclined to believe most people prefer FP+ for the host of reasons that many people have previously described.


