2019 Walt Disney Company Year End Earnings Report

[rteetz]

Iger "We don't look at individual price increases at the parks, we look big picture"

They do believe people are waiting for Rise of the Resistance.

Iger says both lands are doing way better than being reported.

Falcon has carried over 1.7 million people since it opened. Attraction satisfaction for Falcon is high.

 

[rteetz]

https://twitter.com/x/status/1192564943792562178

 

[rteetz]

https://twitter.com/x/status/1192566441821769734

 

[rteetz]

Iger just corrected himself 5 million on the Falcon not 1.7 million.

 

[Mome Rath]

https://twitter.com/x/status/1192564943792562178

It's both Iger, it's both.

 

[rteetz]

Full report

https://www.thewaltdisneycompany.com/wp-content/uploads/2019/11/q4-fy19-earnings.pdf

 

[MommaBerd]

Thanks for the updates everyone!

 

[Wreckem]

I am slightly worried about crowds at Xmas. It seems like bookings for that period are higher and if they are right about people waiting for rise then the parks will be even more packed than years past. The issue is last year they opened Magic Kingdom at 6:00am and 7:00am during Xmas and New Years but so far haven’t updated park hours for this Xmas. I’m still hoping for those 6am and 7am openings...

 

[minorthr]

The revenue recognition for dvc change. I’m guessing they are taking the revenue when the units are declared now instead of when points are sold. Anyone have any further info?

 

[Mome Rath]

I think some are waiting for more than just RotR, so I'd be surprised if there is a HUGE spike in attendance once the ride opens because of the ride itself (yes, the first week will be slammed), I do think it will lead to more people heading to HS. In short, I think that there will be a gradual increase in attendance for the next few years, IF there is no recession.

 

[TheMaxRebo]

Might be over simplifying but seems like pretty solid earnings. Looks like beat expectations and shares are well up in post close trading

I know there was a lot of interest in their results just from a general view of the economy as Disney performance can be a proxy for consumer confidence

https://finance.yahoo.com/news/disney-reports-fiscal-4q-2019-results-210555412.html

 

[Mome Rath]

Yes, and in the overall US economy travel stocks/companies are down, which shows, IMO, Disney does have a draw that others don't... I think they have definitely added that "buying an experience not just travel" thing in a way the consumer is still buying, added with their entertainment factor on the big screen.

 

[RivShore]

The revenue recognition for dvc change. I’m guessing they are taking the revenue when the units are declared now instead of when points are sold. Anyone have any further info?

From the report link above, no real details around the change for DVC...

ADOPTION OF NEW REVENUE RECOGNITION ACCOUNTING GUIDANCE

At the beginning of fiscal 2019, the Company adopted new revenue recognition accounting guidance (ASC 606). Results for fiscal 2019 are presented under ASC 606, while prior period amounts continue to be reported in accordance with our historical accounting.The current quarter includes a $55 million favorable impact on segment operating income from the ASC 606 adoption. The most significant impact was an $88 million increase at Parks, Experiences and Products, which reflected licensing revenue from products related to films not yet released and benefits from the timing of recognition of licensing minimum guarantees and sales of vacation club properties.

 

[rpb718]

"Disney says visits to US theme parks are being deferred until Galaxy's Edge is complete"

I'd love to know the source of the data for this claim.

As for the earnings being up overall - I take it with a grain of salt after looking at this thread: https://www.disboards.com/threads/potential-fraud-at-disney.3765759/

 

[Brianstl]

My guess is Disney use of the word comparable is to hide that WDW had declining operating income. Any increase would have been called an increase.

 

[minorthr]

From the report link above, no real details around the change for DVC...

ADOPTION OF NEW REVENUE RECOGNITION ACCOUNTING GUIDANCE

At the beginning of fiscal 2019, the Company adopted new revenue recognition accounting guidance (ASC 606). Results for fiscal 2019 are presented under ASC 606, while prior period amounts continue to be reported in accordance with our historical accounting.The current quarter includes a $55 million favorable impact on segment operating income from the ASC 606 adoption. The most significant impact was an $88 million increase at Parks, Experiences and Products, which reflected licensing revenue from products related to films not yet released and benefits from the timing of recognition of licensing minimum guarantees and sales of vacation club properties.

from reading asc 606 they could be doing anything. booking the revenue upon declaring units or booking the revenue when one business entity transfers property to another. Or booking all the revenue from financing purchases upfront instead of when the money rolls in. whatever it is it seems to allow them to “inflate“ quarterly earnings if they need to.

 

[Brianstl]

from reading asc 606 they could be doing anything. booking the revenue upon declaring units or booking the revenue when one business entity transfers property to another. Or booking all the revenue from financing purchases upfront instead of when the money rolls in. whatever it is it seems to allow them to “inflate“ quarterly earnings if they need to.

I think it is them now reporting all the money they will receive from financed contracts at the time of sale as revenue instead of reporting it as revenue as the finance payments are made. It would inflate earnings compared to previous quarters, but in Disney’s defense it appears they are now required to report it this way.

 

[dlavender]

I think Disney is happy with this past quarter. I know they were most likely expecting a bigger SWGE impact but it looks like with ROTR they may still get closer to their (and my) expected bump.

So if I’m reading correctly, attendance was comparable to last year? Selfishly I’m hoping this is true as it means we have, at least for the short term, found the price ceiling...

 

[vacationer1954]

So if I’m reading correctly, attendance was comparable to last year? Selfishly I’m hoping this is true as it means we have, at least for the short term, found the price ceiling...

Or getting closer to it.

 

[sachilles]

Lodging is expected to be up 5% next year? What percentage of the bed base is Riviera?

If Lodging continues to operate near capacity, and capacity continues to grow, that isn't a bad thing for the bottom line.
I think the DVC model has worked well for Disney, and will serve them well for the near future.

I'd be curious to see what the next DVC project is after Reflections.