Walt Disney Company Quarter 2 Earnings Report 2020

[Mit88]

That kind of confirms they won’t open to just locals

 

[monica9]

Look at Overhead + profit

 

[BryGuy415]

Parks reopening is not about break even but more of a positive contribution. They won't reopen until they can make a positive contribution.

Bingo - it's not necessarily that they can't do it immediately - it's about getting people in the parks and buying more than just tickets

 

[cm123]

What does "positive contribution" mean?

 

[pangyal]

Any word on resorts? DVC? That is a huge difference between WDW and Shanghai imho.

 

[rteetz]

Disney hopeful for Mulan.

 

[OnceUponATime15]

Operating capacity parks... Bob C.

No real answer in terms of what we here are looking for.

 

[rteetz]

What does "positive contribution" mean?

Means it won't lose money to reopen. They need some sort of gain.

 

[pangyal]

What does "positive contribution" mean?

They need to be able to pull in more than what they are spending on cast, etc.
@rteetz beat me to it

 

[rteetz]

Any word on resorts? DVC? That is a huge difference between WDW and Shanghai imho.

Nothing and unlikely we get anything. This call is for the company overall.

 

[BryGuy415]

What does "positive contribution" mean?

It means they won't open a park if it contributes to losses. The cost to operate the park/resort has to be less than the revenue that it generates. Meaning if 25% capacity doesn't do it - then they won't open.

 

[michellej47]

Means it won't lose money to reopen. They need some sort of gain.

I think that rules out any Florida resident only since they make more money off of resort guests.

 

[rteetz]

Disney longterm bull-ish on Hulu international. Short term no changes.

 

[gottalovepluto]

Need to know if I should cancel my flights and inform my employer if I need to reschedule PTO. It’s under 4 weeks, they owe some transparency. It’s pretty obvious it’s a no go.

We have seen they do not have a problem putting people off until 2 weeks before their trip to cancel.

 

[CastAStone]

Parks reopening is not about break even but more of a positive contribution. They won't reopen until they can make a positive contribution.

This squares nicely with my biscuit story, for those who don't know what "positive contribution" means:

Long ago, my employer used to sell biscuits. We lost a ton of money on each bag of biscuits we sold. But when we let the plant sit idle we lost even more money. So we continued to sell biscuits. Eventually circumstances changed and now we don’t sell biscuits anymore, but for a long time we lost less money by losing money selling biscuits.

That’s what’s gonna happen with 12,000 people in the Magic Kingdom, probably paying discounted admission, but buying $11 hot dogs.

 

[Mit88]

I think that rules out any Florida resident only since they make more money off of resort guests.

That was a long shot to begin with because of this very reasoning they gave

 

[OnceUponATime15]

Film production.. when can it be restarted - particularly large scale.. same as theme parks - safety proceedures

 

[rteetz]

Disney believes in the theatrical process/window.

 

[cm123]

Means it won't lose money to reopen. They need some sort of gain.

So Hong Kong Disney should have been closed years ago?

I kid......

 

[RamblingMad]

I didn’t like his comment on cash related to launching international faster. Their cash cushion might not be adequate to fund new growth.

 

[CastAStone]

What does "positive contribution" mean?

Losing less money by being open than being closed.