Should Disney be jealous?

[Mouseaholic!!!]

Ok, I'll try this one more time...

You cannot compare US to WDW dollar to dollar.

WDW has MANY more parks, MANY more employees, Many more people receiving corporate benefits, MANY more places to spread our their $511 million.

Once again...it's all about the margin of each of those dollars. If (this is a random example) if Disney is making a 13% profit on each dollar and US is making 28% profit on each of those dollars earned....Disney is working WAY too hard for each dollar.

The BIGGER point is they will have less of those 2009 dollars vs. 2008 to reinvest into maintenance, upgrades, benefits etc. thoughout their vast empire because the value of a Disney dollar last quarter is less than in 2008..

Simply put, Disney has a MUCH bigger infrastructure to care for with less profit than 2008. Sure they earned more dollars overall than US....but US was more successful with each of their dollars earned and have FAR LESS infrastructure to support.

THAT's all I'm saying. I'm pretty sure US would rather have it exactly the way it is. They have more profit $$ than 2008 to spread over a much smaller ..... dare I say.....kingdom. They will be able to do more with their $$ than Disney.

Can you imagine how much easier it would be for Disney right now to ..... pay their bills, upgrade, reinvest in their assets...if they had matched last year's profit?

Think about it....how easy would it be for all of us if our salary was cut (even for just 3 months) by 26%. I don't know about you....but that would get MY attention!

......am I reaching.....anybody or is everyone now just

 

[tjkraz]

Once again...it's all about the margin of each of those dollars. If (this is a random example) if Disney is making a 13% profit on each dollar and US is making 28% profit on each of those dollars earned....Disney is working WAY too hard for each dollar.

There is no need to work with random examples when actual figures are available.

In the April - June 2009 period, Disney Parks had profit of $521 million on revenues of $2.75 billion. That's an Operating Profit Percentage of 18.9%.

Universal Florida had profit of $27.1M on revenues of $215M. That's an OPP of 12.5%.

Even with Universal's increase in profitability, they are turning a smaller profit (percentage-wise) than Disney.

For the same period 2008 Disney had an OPP of 20.9% ($3.07B revenue, $643M profit) vs. Universal's 8.7% ($241M revenue, $21.1M profit.)

The bottom line is that Disney was, and still is retaining a far greater percentage of its revenues as profit than Universal. And that's net of the operating and capital expenditures cited in your prior post.

 

[crocko]

More proof that Disney as a whole company is weathering the storm with good business practices.

For year 2008, Disney's revenues increased 6.5%. Unfortunately, net income dropped 5.5% during the fiscal year, though.
BUT...Disney management is using its cash wisely to offset a high expense year.

As the true bottom line, EPS managed to increase 12.9% despite the dip in income.

 

[kmk1180]

There is no need to work with random examples when actual figures are available.

In the April - June 2009 period, Disney Parks had profit of $521 million on revenues of $2.75 billion. That's an Operating Profit Percentage of 18.9%.

Universal Florida had profit of $27.1M on revenues of $215M. That's an OPP of 12.5%.

Even with Universal's increase in profitability, they are turning a smaller profit (percentage-wise) than Disney.
.

That just about sums it up.
$521 to $27?

Ya I'm sure Disney is quaking in their boots.