Disney beats earnings and revenue estimates on ad rates and theme parks

Posted Wednesday, August 10, 2011 1:21 PM | Contributed by Jeff

Walt Disney posted earnings after the bell on Tuesday, beating expectations but seeing the stock fall in afterhours trading. Parks and resorts performed well in the quarter, seeing revenues jump 12% to $3.2 billion. Operating income gained 9% to $519 million on higher guest spending and attendance.

Read more from Forbes.

Wednesday, August 10, 2011 1:56 PM

This is another thing that makes me question how it is that the economy is really hurting that badly. The markets are being completely irrational. There was the crash on Monday, the partial recovery yesterday, and then back down today. Disney is down almost 9% today on this news.

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Wednesday, August 10, 2011 1:57 PM

+1 - Don't get me started on the Markets.

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Wednesday, August 10, 2011 6:41 PM

The only reason why revenues are up is due them constantly raising the price of admission.

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Wednesday, August 10, 2011 8:42 PM

Ell oh Ell.

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Thursday, August 11, 2011 10:23 AM

Jeff said:
This is another thing that makes me question how it is that the economy is really hurting that badly. The markets are being completely irrational. There was the crash on Monday, the partial recovery yesterday, and then back down today. Disney is down almost 9% today on this news.

In terms of the economy, some places are doing real well. But, like we've had for the past 10 years, some places are doing really poorly as well. Reading between the lines, ESPN did well as did in park spending. ESPN would fair somewhat better in these times, as people who do not have money may be more likely to stay at home and watch TV. Park prices for Florida / CA, well, they've gone up. The film side hurting. That also could be a sign of the times / economy. The last movie I went to go see, I was one of 3 in the theatre.

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Thursday, August 11, 2011 12:54 PM

Box office is just Disney. They just don't have a hit every quarter. Overall, the movie industry was up significantly in '09, then flat for '10. They're trending up for this year.

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Thursday, August 11, 2011 1:16 PM

Not that it really matters (money is still money), but is the movie industry up only in dollars, or also up in tickets sold?

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Thursday, August 11, 2011 1:34 PM

I'm not sure... ticket prices seemed to be in line with inflation, or slightly below, the last few years (I can't remember where I saw these stats). I'm not sure why 2009 saw such a huge jump, but it might be because of Avatar.

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Thursday, August 11, 2011 2:20 PM

I was curious as what impact, if any, all the higher priced 3D & IMAX ticket sales had.

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Thursday, August 11, 2011 2:23 PM

Good question. The stats I'm recalling didn't have any breakdown, so I would have to assume that overall the ticket count wouldn't see the same growth.

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Friday, August 12, 2011 12:37 PM

djDaemon said:
I was curious as what impact, if any, all the higher priced 3D & IMAX ticket sales had.

I do not have the reference in front of me, but in general, 3D has helped on the international scene but not had a huge impact on the domestic scene in attendance. It seems that US audiences, in general, are not interested in paying more for the 3D effect of a movie and / or they do not want to sit with glasses on throughout the movie.

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Friday, August 12, 2011 12:39 PM

Walt S said:

djDaemon said:
I was curious as what impact, if any, all the higher priced 3D & IMAX ticket sales had.

I do not have the reference in front of me, but in general, 3D has helped on the international scene but not had a huge impact on the domestic scene in attendance. It seems that US audiences, in general, are not interested in paying more for the 3D effect of a movie and / or they do not want to sit with glasses on throughout the movie.

Found it:
http://www.nytimes.com/2011/05/30/business/media/30panda.html

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Friday, August 12, 2011 12:43 PM

Walt S said:

djDaemon said:
I was curious as what impact, if any, all the higher priced 3D & IMAX ticket sales had.

I do not have the reference in front of me, but in general, 3D has helped on the international scene but not had a huge impact on the domestic scene in attendance. It seems that US audiences, in general, are not interested in paying more for the 3D effect of a movie and / or they do not want to sit with glasses on throughout the movie.

Here's a second reference talking about Imax. http://articles.latimes.com/2011/jul/26/business/la-fi-ct-imax-20110726

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Friday, August 12, 2011 12:51 PM

djDaemon said:
Not that it really matters (money is still money), but is the movie industry up only in dollars, or also up in tickets sold?

I don't have the data for 2011 available, but for 2010 (http://www.mpaa.org/Resources/93bbeb16-0e4d-4b7e-b085-3f41c459f9ac.pdf), raw attendance numbers were down while box office was up. Ticket prices went up by about 5%. Generally, this is the trend that has been present since around 2002, give or take a few peaks and valleys.

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Friday, August 12, 2011 12:54 PM

Wow. A double self-quote quad-post... I think that may be a first!

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Friday, August 12, 2011 1:02 PM

More difficult than a Triple Lindy.

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Friday, August 12, 2011 2:25 PM

Well, he's no Thornton Mellon.

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Thursday, September 8, 2011 10:37 AM

Jeff said:
Good question. The stats I'm recalling didn't have any breakdown, so I would have to assume that overall the ticket count wouldn't see the same growth.

2011 Summer Movie Attendance Was the Lowest Since 1997
A few data points from the article:

- 2011 US box office revenue up by less than 1% over 2010

- This is the 4th consecutive summer for decreased attendance

- International ticket sales & revenue are making up for decreased sales & revenue in the US

- Q1 ticket sales were down 20%; year-to-date sales are down 4%

- The majority of summer ticket revenue is attributed to 3 sequels/franchises: Transformers, Harry Potter & Pirates.

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Thursday, September 8, 2011 1:08 PM

That's kind of interesting. This is why I'm watching Kevin Smith's actions around Red State so carefully. Here's a guy who shoots a film with little commercial appeal (by his estimation) on a shoe string budget, does a tour with it including his Q&A schtick, then does VOD (I really need to check it out soon), and eventually does a live event to more theaters. Video release eventually. And unlike most films, it's profitable. Seems like a better way to do business than rely on a few hits to support the losers.

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