Disney Q3 2020 Earnings Call

Oh. Sorry. I can see why it read that way. I just meant too relaxed because there weren’t enough people there. They need more people to come!

But the resort handled the social distancing and mask wearing well. In fact, I loved that you got a band for temperature check once each morning that worked at the parks as well (although, temperature checks at Disney were very quick, regardless).

2 Likes

I was following @ryan1 too and thought about this contradiction. But the date on the comment, plus the fantastic passes for FL residence, along w/ crowd size as 8/9 out of 10 maybe wonder aloud about the comment. It could be a weekend observation. As a new FL transplant considering taking advantage of the great ticket deal I’m looking at all the reports to help me make a decision. I’m leaning toward the 15-months for 12-month AP though since I don’t have to activate it right away. Plus I like that I don’t have to make a park reservation and can go on a whim.

2 Likes

It’s confusing to me why the UOR crowd levels continue to be posted high, even after TP admitted the wait times are extraordinary inflated. :face_with_raised_eyebrow:

2 Likes

oh yeah, thanks for that reminder!

1 Like

I was pretty surprised to see this in an article:

“Universal does seem to be a better place than Disney, thanks to parent company Comcast’s non-entertainment-based divisions and Universal’s more nimble corporate structure.”

https://www.orlandoweekly.com/Blogs/archives/2020/08/18/thanks-to-the-pandemic-universal-orlando-seems-to-have-an-epic-problem

2 Likes

Interesting article.

It is funny. My wife and I were just talking about Universal Studios and how poorly themed it is, overall, compared to IOA. While there are some nice things about it, the whole MIB and Simpsons areas seem quite lackluster by today’s standards. And E.T., while classic, is EXTREMELY dated. Anyhow, part of that discussion was highlighting the fact that there really is very little that targets a younger family audience. Across both parks, you have Seuss land, which amounts to, what, basically three attractions? Oh, wait. Four.

What Universal needs is to update US significantly. Of course, that seemed unlikely with Epic Universe coming on line.

But now? This article seems to indicate that there is a possibility Nintendo land will be shifted back to US…which is a great start to improving things! I hope it happens. I mean, sure, the “loss” of Epic Universe will be sad if it comes to that…but the truth is, at this point, US could use some TLC of its own first.

3 Likes

I had heard this was on the list of possibilities the other week.

I actually prefer it this way. I think Universal’s niche is more thrill and dark rides for the more mature audience. I wonder what their target age for Epic U will be?

1 Like

Bit behind here…

At the start of fireworks, don’t they usually say the fireworks are sponsored by… I remember Honda at one fireworks. Or are they no longer sponsored? I tried Googling but couldn’t find the answer. If fireworks are sponsored, does that mean the sponsor pays for the fireworks, development…?

So for this week, TP had predicted crowd levels of “7” at UOR. So far, since Monday, actual crowd levels are averaging 3-4. Sounds more realistic!

1 Like

A few thoughts from the Q4 2020 Earnings Call:

  • Disneyland will remain closed at least through the end of the year :frowning:
  • WDW is “close to capacity” (meaning pandemic restricted capacity) for the week of Thanksgiving
  • Disney+ has 73 million subscribers, which beat expectations of 65 million
  • Net loss of $0.39 per share also beat expectations
  • Parks are “contributing positive margin” meaning that they are covering variable costs and contributing to fixed costs, but still operating at a net loss. Not good long term, but better than keeping the parks shuttered.
  • Direct to Consumer (Disney+, Hulu, ESPN+, etc.) had a $580M operating loss, but in the eliminations we see that about $1.5B in revenue for Media and Studio segments was paid by DTC. To the extent Media and Studio segments are already breaking even on that content, Disney+ is probably doing even better than it looks.
  • With $7.6B in cash from operations, Disney is quite solvent and really shouldn’t be so worried about cutting costs, IMO. But I see why they’re doing that.
  • Disney cancelled their January dividend
1 Like

But the execs are back on full pay, which is nice for them.

They also said in the call that they did in fact increase capacity from 25% to 35%. :scream:

1 Like

So thanksgiving week being “near capacity” would be the 25% or the 35%?

I assume the 35%

It’ll be interesting to watch wait times that week! I guess that explains why they’ve been working to increase capacity on FEA and Rise.

It must have happened Monday when the park pass calendar suddenly showed HS available for Nov/Dec

1 Like

That should mean this week is the first week of increased capacity. Joy.

I saw Len on Twitter discussing this - he has asked twice in the last week and they’ve told him 25% both times. So the 35% must be brand new and may not be in effect yet. But who knows.

1 Like

WDWMagic posted a few weeks ago that capacity had increased but didn’t give a figure.

According to WDWMagic, Chapek said “Disney is now operating at 35% of capacity”. That suggests it’ s already gone into effect.

https://www.wdwmagic.com/other/walt-disney-company/news/12nov2020-bob-chapek-confirms-that-walt-disney-world-has-increased-capacity.htm

2 Likes