Disney 4th Quarter 2023 Fiscal Results

[Mad Dog]

Disney's Experience segment reported operating income rose 31% to $1.759 Billion for the 4th quarter (July, August, Sept.). Overall revenue was up 13% to $8.16 Billion. International parks (which had some 2022 covid restrictions), Cruise line, and Disneyland drove the strong increase. Iger, in an interview on CNBC said, "International parks are doing well but there's some difficult comparisons in the Florida parks". The company open call added that WDW Disney "continues to manage against wage inflation and challenging comparisons to the prior year (WDW 2022 4th quarter) from the 50th Anniversary celebration"..............
Company wide Revenue was $21.24 Billion vs Analysts Estimate of $21.33 Billion....so pretty close to expectations overall.
...................Surprisingly, no mention of the Florida heat retarding WDW attendance was made.

 

[Jake S]

Between this, the Universal Orlando parks and what's happening with SeaWorld ... it's increasingly looking like a Florida problem. Whether that's a natural fall-off from revenge travel (probably), a changing cycle of attendance because of weather (maybe) or political reasons (skeptical)... it's interesting to see California parks like Disneyland and Universal Studios Hollywood perform so well compared to their Orlando counterparts.

I'm generally of the mind that this will work itself out over time, but that's not exactly how these companies operate. Interesting times ahead!

 

[Cup_Of_Coffee]

I don’t want to spark discussion on politics, but, I’ve thought of a Disneyland trip compared to WDW, for, politics. I worry Florida will continue to suffer from this for a few years.

 

[Mad Dog]

Between this, the Universal Orlando parks and what's happening with SeaWorld ... it's increasingly looking like a Florida problem. Whether that's a natural fall-off from revenge travel (probably), a changing cycle of attendance because of weather (maybe) or political reasons (skeptical)... it's interesting to see California parks like Disneyland and Universal Studios Hollywood perform so well compared to their Orlando counterparts.

I'm generally of the mind that this will work itself out over time, but that's not exactly how these companies operate. Interesting times ahead!

Seems like it is. To add to that, the international travelers to WDW are still down significantly from their historical percentages of attendance, according to an interview with Iger a few months ago. So that probably affects Universal also. Sea World is in a different world now from it's past that was heavily international, but I don't believe that's much of their attendance since the past decade or so because the park has had so many issues. Sea World is probably a locals coaster park more than anything else......So, I'm thinking that attendance will be flat until international travel to the Orlando parks returns to it's previous level. I'd guess that's the number one reason because it's down for all seasons, not just the hot summers. I think the political stuff might matter a little bit for a couple demographics, but I'd guess it's a minor effect.

 

[Jake S]

Seems like it is. To add to that, the international travelers to WDW are still down significantly from their historical percentages of attendance, according to an interview with Iger a few months ago. So that probably affects Universal also. Sea World is in a different world now from it's past that was heavily international, but I don't believe that's much of their attendance since the past decade or so because the park has had so many issues. Sea World is probably a locals coaster park more than anything else......So, I'm thinking that attendance will be flat until international travel to the Orlando returns to it's previous level. I'd guess that's the number one reason because it's down for all seasons, not just the hot summers. I think the political stuff might matter a little bit for a couple demographics, but I'd guess it's a minor effect.

This is a really good point. The flip side of the U.S. Dollar being very strong right now is that it makes visiting from overseas much more expensive. It also, as we've discussed previously, makes it more enticing to travel abroad as an American. I can tell you that the strong dollar made my honeymoon in Japan quite a bit cheaper than it would have been in 2018. If that's enticing people who may travel domestically to finally get to Europe or Asia... you'll see that reflected in places like Orlando, which (still) relies on tourists more than locals.

 

[Mad Dog]

This is a really good point. The flip side of the U.S. Dollar being very strong right now is that it makes visiting from overseas much more expensive. It also, as we've discussed previously, makes it more enticing to travel abroad as an American. I can tell you that the strong dollar made my honeymoon in Japan quite a bit cheaper than it would have been in 2018. If that's enticing people who may travel domestically to finally get to Europe or Asia... you'll see that reflected in places like Orlando, which (still) relies on tourists more than locals.

plus signs are pointing to a worsening European economy. I don't know Brazil's situation though. Those two areas are the bulk of Orlando international visitors.....and yes, Americans traveling internationally was at historical high levels this past twelve months, according to the travel industry.

 

[Jerroddragon]

I'll also add weather

CA weather is 90% of the time perfect.

Florida is insane in the summers

Also it's kinda insane Disneyland is up so much, rumors have been DL has never allowed 100% capacity since covid so the fact they can make more money with less people is insane.

 

[Mad Dog]

I'll also add weather

CA weather is 90% of the time perfect.

Florida is insane in the summers

Also it's kinda insane Disneyland is up so much, rumors have been DL has never allowed 100% capacity since covid so the fact they can make more money with less people is insane.

Genie+ is a large part of the Disneyland answer......The flat attendance at WDW & Universal actually started in mid March, before the weather heated up. The previous quarter (April/May/June), even with a late Easter, for both WDW and Universal wasn't very good either......I criticize the parks sometimes, but I can't really blame this on them. Once the covid rebound stopped, the only way they could have met attendance goals was if the International tourists, that both chains rely on in Florida, returned to historical levels. . That's mostly out of their control, and is dependent on economic factors more than anything else.

 

[TheUniC6]

Disney CEO Bob Iger Says 'Turbocharging Growth' in Theme Parks is Among Key Building Opportunities - WDW News Today

The Walt Disney Company, CEO Bob Iger said that "turbocharging growth" at Disney theme parks is among their "key building opportunities."

wdwnt.com

Wouldn't it be nice if Iger put money where his mouth is and actually break ground on something, anything for the parks? Time is running out for the Disney parks to get any large sort of expansions beyond the "what if" imagineering concepts presented at D23 2022 and destination D23.

 

[Mad Dog]

More from today's conference call. Bottom line, the new stuff is mostly towards the end of this decade and into 2033. ...Disney's interim CFO Kevin Lansberry on Disney's announced $60 billion investment in theme parks and experiences. He said to "expect those investments to ramp up towards the back half of that 10 year period with more gradual experiences in the first few years". ...So, don't get your hopes up for much in the near future. The new stuff is hidden in a Galaxy Far Far Away.....,.Epic will probably have almost all of our shiny new toys for a good while.

 

[TheUniC6]

More from today's conference call. Bottom line, the new stuff is mostly towards the end of this decade and into 2033. ...Disney's interim CFO Kevin Lansberry on Disney's announced $60 billion investment in theme parks and experiences. He said to "expect those investments to ramp up towards the back half of that 10 year period with more gradual experiences in the first few years". ...So, don't get your hopes up for much in the near future. The new stuff is in a Galaxy Far Far Away.

Disney needs new management ASAP. They don't even have a timeline on construction for the Avengers E ticket at DCA for crying out loud!

 

[UniversalRBLX]

They noticed attendance started to lag as early as January/February of this year and started to push out deals, and it wasn't until October that attendance started to rebound due to some pretty decent Florida Resident deals.

Summer, while ridiculously hot, was pretty decent at the parks if you could handle the heat.

2024 might be a very soft year for the parks with all these deals WDW and UOR are pushing.

 

[Mad Dog]

They noticed attendance started to lag as early as January/February of this year and started to push out deals, and it wasn't until October that attendance started to rebound due to some pretty decent Florida Resident deals.

Summer, while ridiculously hot, was pretty decent at the parks if you could handle the heat.

2024 might be a very soft year for the parks with all these deals WDW and UOR are pushing.

Yeah, I'm expecting huge deals from Universal after they formally announce, and start marketing, Epic. Right now, The GP tourists don't know the park will exist. But once they find out, that'll probably slow up tourist bookings for second half 24 and first few months of 25......WDW was fairly busy the two weeks around Columbus Day school breaks, but dead the rest of the month. They've been moderately busy this week with Jersey days starting.

 

[Jerroddragon]

Disney needs new management ASAP. They don't even have a timeline on construction for the Avengers E ticket at DCA for crying out loud!

It doesn't even need to be that....just something at DCA we have nothing new planned for what seems like years but that park needs more. It cost the same as Disneyland with half the attractions.

I love DCA but it's a half day park unless it's packed (kinda like USH) I would just like to see them focus on that after the Splash Redo. I mean if they want to add to Disneyland as well cool but DCA is the park that needs the love more

 

[SkiBum]

On the press release, Iger stated that the big investment in the parks will happen at the back end of the next ten years. So, plan on Disney starting things in 2028 or later and probably not opening until 2031. Unless they fast-track something unexpectedly. Meanwhile, UNI will open a park and has plans for additional attractions at IoA and UNI that will open before the end of this decade.

 

[Jerroddragon]

On the press release, Iger stated that the big investment in the parks will happen at the back end of the next ten years. So, plan on Disney starting things in 2028 or later and probably not opening until 2031. Unless they fast-track something unexpectedly. Meanwhile, UNI will open a park and has plans for additional attractions at IoA and UNI that will open before the end of this decade.

They must think Universal opening Epic/SNW will just draw people to the area and hope most come to WDW and Disneyland

 

[Mad Dog]

They must think Universal opening Epic/SNW will just draw people to the area and hope most come to WDW and Disneyland

That worked with Potter in 2010 and 2011, so they're probably thinking lightening will strike twice and they'll ride the Epic coattails. But that might not happen this time. Circumstances are different. Uni has a ton of hotel rooms now, not just the 2000 they had in 2010. Uni has a better reputation and gets more and longer on site vacations now. Previously they were able to steal a day or two from a Disney vacationer. Now sometimes it's Disney that's stealing a day or two from an Orlando Universal vacation. Like in Aladdin , it's a whole new world. Disney will remain dominant, but not as dominant as they were before Potter.

 

[Jake S]

Disney will remain dominant, but not as dominant as they were before Potter.

Yeah, I tend to think we'll see Disney cede some market share but, I assume they hope, in a larger market.

 

[TheUniC6]

On the press release, Iger stated that the big investment in the parks will happen at the back end of the next ten years. So, plan on Disney starting things in 2028 or later and probably not opening until 2031. Unless they fast-track something unexpectedly. Meanwhile, UNI will open a park and has plans for additional attractions at IoA and UNI that will open before the end of this decade.

That worked with Potter in 2010 and 2011, so they're probably thinking lightening will strike twice and they'll ride the Epic coattails. But that might not happen this time. Circumstances are different. Uni has a ton of hotel rooms now, not just the 2000 they had in 2010. Uni has a better reputation and gets more and longer on site vacations now. Previously they were able to steal a day or two from a Disney vacationer. Now sometimes it's Disney that's stealing a day or two from an Orlando Universal vacation. Like in Aladdin , it's a whole new world. Disney will remain dominant, but not as dominant as they were before Potter.

At this point let Disney's cockiness and arrogance catch up to them. Considering their lack of commitment to any of substance that is real and inability to break ground on things like the Avengers E ticket, they deserve to lose market share to Universal.

 

[Jerroddragon]

At this point let Disney's cockiness and arrogance catch up to them. Considering their lack of commitment to any of substance that is real and inability to break ground on things like the Avengers E ticket, they deserve to lose market share to Universal.

I wish....but Disney fans are nuts

They complain about HMH then go during the Holiday in record numbers, most don't care for Genie plus but go....many don't like reservations but go, there are LINES for popcorn buckets and tiki cups, lol

I wish soo badly they would take an L but Disney fans refuse to not support them in some way