Revenue increased 6 percent to $5.2 billion for the quarter that ended June 30. Operating income rose 15 percent to $1.34 billion. Disney said the increase was driven by higher guest spending amid increased ticket prices and hotel room rates. Attendance at domestic parks was up 1 percent in the quarter.
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An overall segment margin north of 25% is bananas. That includes cruise lines, etc. but still.
I'd love to know what the cruise lines do, relative to the enormous initial investment of each ship.
Given that they keep making new ones, I'd assume it's not half bad. But, I'm sure it's also a capitalized expense amortized over many future years' worth of balance sheets.
Yeah, over a billion each, I'm sure, but the four existing ships were built over 15 years. The next three will presumably launch a year apart starting in 2021, so that's something like $5 billion in three years. It's also worth pointing out that the ships all look completely new. You'd never guess the Magic is 20 years old.
Well, given that the majority of ship labor, with the exception of top level engineering and Captain's staff is international and working for next to nothing wages (at least the portion the cruise line actually pays), I'd say that cruise line operating margins are in the stratosphere. Like airlines they are impacted by the recent rise in fuel costs, but over the preceding 4 years with crude oil prices at their lowest and probably hedged for at least a 18months out, I'd say they're still in great shape. As Jeff mentioned this is excluding the upfront cost/amortization/Depreciation of the ship itself, but operating margins, with the bulk food, cheap liquor prices, etc, money should be falling to the bottom line.
You'd never guess the Magic is 20 years old.
M is a big DCL fan, but prefers the two original ships. She loves them.
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