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Old 05-09-2019, 05:01 AM   #1
tomandrobin
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Default Disney parks lift earnings

Disney parks lift earnings, 'Avengers: Endgame' streaming date announced

By Lisa Richwine and Vibhuti Sharma

(Reuters) - Walt Disney Co's theme parks lifted quarterly earnings past Wall Street targets on Wednesday, helping offset big investments to support the media and entertainment company's bid to draw audiences to streaming media.

Shares of Disney rose 1.5 percent to $137 in after-hours trading.
"Avengers: Endgame", the end of a decade-long superhero series with $2.2 billion in box office sales worldwide, will stream exclusively on Disney+ starting Dec. 11, the company announced.

Growth at Disney parks in the United States boosted results above analyst expectations. From January to March, Disney reported adjusted earnings per share of $1.61, ahead of analyst estimates of $1.58, according to IBES data from Refinitiv. Heavy investment accounted for a 13 percent drop from a year ago by that measure.

Revenue rose 3 percent to $14.92 billion. Analysts had been expecting a small decline.

Disney is trying to transform from a cable TV leader to a streaming media powerhouse that, like Netflix Inc, sells subscriptions directly to consumers. Costs to build digital services will weigh on profits for several years, the company has said.

Its biggest streaming bet, the family-oriented Disney+, is set to launch in November. The company told analysts in April that it expects Disney+ to achieve profitability in fiscal 2024.

The just-ended quarter reflected the purchase of film and TV assets from 21st Century Fox, which brought Disney more content for its streaming future.

For the quarter, the direct-to-consumer and international unit recorded a loss of $393 million from streaming costs.
Disney also recorded a $353 impairment charge from its ownership stake in media startup Vice.

In the theme park unit, net income hit $1.5 billion as more visitors showed up at Walt Disney World in Florida and at Hong Kong Disneyland, and occupied hotel nights increased.

"Increased ticket prices havenít put visitors off, and hotels continue to be a major driver of additional spending," said Nicholas Hyett, equity analyst at Hargreaves Lansdown. "Itís easy to get caught up in the hype surrounding new films ... but itís the less glamorous Media Networks and Parks that pay the lionís share of the bills."

Overall net income jumped 85 percent, to $5.4 billion, thanks to Disney's acquisition of a controlling stake in Hulu through the Fox acquisition.
Media networks, a division that includes ESPN and ABC, reported $2.2 billion in operating income for the quarter.

The movie studio reported profit of $534 million, lifted by "Captain Marvel," which was a global hit but did not reach the level of "Black Panther" and "Star Wars: The Last Jedi" a year earlier.
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Old 05-09-2019, 10:23 AM   #2
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Yeah.....I feel their increased park revenue. Right in my wallet.
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Old 05-09-2019, 01:08 PM   #3
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In the theme park unit, net income hit $1.5 billion as more visitors showed up at Walt Disney World in Florida and at Hong Kong Disneyland, and occupied hotel nights increased.

"Increased ticket prices havenít put visitors off, and hotels continue to be a major driver of additional spending," said Nicholas Hyett, equity analyst at Hargreaves Lansdown.
We all know what this means

Thanks for posting the info
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Old 05-15-2019, 08:18 AM   #4
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I'm no accountant (dropped that idea my first year in college when I took intermediate accounting!), but I find it curious that for parks & resorts (or whatever they call it now) REVENUES (which I understand to be total amount of $ brought in) went up 5%, but OPERATING INCOME (which I understand to be REVENUES - EXPENSES including wages) went up 15%.

Doesn't this mean they cut costs greatly?
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Old 05-15-2019, 10:09 AM   #5
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Originally Posted by cpnkirk View Post
I'm no accountant (dropped that idea my first year in college when I took intermediate accounting!), but I find it curious that for parks & resorts (or whatever they call it now) REVENUES (which I understand to be total amount of $ brought in) went up 5%, but OPERATING INCOME (which I understand to be REVENUES - EXPENSES including wages) went up 15%.

Doesn't this mean they cut costs greatly?
I would imagine this has a lot to do with decreased park hours. Finding a 16 hour operating day was pretty rare during Q1, and even just last year or the year before I would have considered 16 hours a short day. It seems like they are finding a sweet spot for them as far as labor costs.
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Old 05-15-2019, 10:40 AM   #6
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Please read this with dripping sarcasm....

Why am I not surprised?
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Old 05-15-2019, 11:12 AM   #7
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Originally Posted by cpnkirk View Post
I'm no accountant (dropped that idea my first year in college when I took intermediate accounting!), but I find it curious that for parks & resorts (or whatever they call it now) REVENUES (which I understand to be total amount of $ brought in) went up 5%, but OPERATING INCOME (which I understand to be REVENUES - EXPENSES including wages) went up 15%.

Doesn't this mean they cut costs greatly?
Almost certainly.
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Old 05-15-2019, 01:33 PM   #8
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Quote:
Originally Posted by cpnkirk View Post
I'm no accountant (dropped that idea my first year in college when I took intermediate accounting!), but I find it curious that for parks & resorts (or whatever they call it now) REVENUES (which I understand to be total amount of $ brought in) went up 5%, but OPERATING INCOME (which I understand to be REVENUES - EXPENSES including wages) went up 15%.

Doesn't this mean they cut costs greatly?
It could also relate to the ratio of fixed costs vs. variable costs.
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