Disney posts record park revenue, but misses analyst expectations
Posted
From CNBC:
The company reported record results in its parks, experiences and products segment, Chapek said. The division, which includes the company’s theme parks, resorts, cruise line and merchandise business, saw revenue increase more than 34% to $7.4 billion during the quarter. Still, Wall Street had slightly higher hopes for the division: Analysts were expecting parks revenue of $7.5 billion, according to StreetAccount.
Operating income for the division rose more than 66% to $1.5 billion as spending increased at its domestic and international parks and consumers booked voyages on its new cruise ship, the Disney Wish. The parks unit, specifically, brought in $815 million in operating income, well shy of the $919 million expected by StreetAccount.
Disney blamed higher costs and said they were only partially offset by higher ticket revenue, driven by the introduction of the Genie+ and Lightning Lane guest offerings.
Stock is getting beat up after hours, I guess because investors want infinite Disney+ growth. Or they're bloggers who didn't get the decline in revenue that they insist will happen. I wonder what the addition of the cruise ship really does in terms of meaningful contribution profit, especially given how expensive those things are to build. The Wish is impossibly beautiful, and I can't wait to see the Treasure next.
Jeff - Editor - CoasterBuzz.com - My Blog
Kramer had a rant about how Chapek should be fired, which of course the bloggers love. They attribute the losses in streaming to content costs and infrastructure, the latter of which is hardly unexpected given the rate of growth.
I'm not a Chapek fan, but that's because I had a pro crush on Iger. Those are big shoes to fill. But so far I think most of what he's doing is a continuation of Iger's plans. Iger was a vision guy, while Chapek is an operator. I think operators have shorter tenures unless they listen to visionary leaders around them. Not sure if he has that
Jeff - Editor - CoasterBuzz.com - My Blog
Kramer didn't know what a write-off is so not sure why people would listen to him on investment advice.
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