The Walt Disney Company reeled in a profit of 4.8 billion dollars over the fiscal year. In the fourth quarter ending October 1st, Disney added 1.09 billion dollars in profit on 10.43 billion in total revenue. Parks and Resorts revenue was up 10% for the year to 11.8 billion and 11% for the quarter to 3.1 billion compared to 2010’s numbers. Parks and Resorts income increased 33% for the quarter to 421 million dollars. For the fiscal year, Parks and Resorts profit increased 18% to 1.553 billion dollars. Walt Disney stock is up 5.44% on the day.
I’m listening to the conference call hosted by Bob Iger and Jay Rasulo and will update with anything deemed interesting.
- Original programming coming to Disney Channel Russia. In Russia, Mickey Mouse watches you.
- Shanghai Disney, a 963 acre site, is a key component of growth strategy in China.
- Disney Fantasy coming in Spring 2012.
- Already at work on Avatar themed land at Animal Kingdom.
- Another Pirates sequel in the works
- Cars products during very well, surpassing Star Wars and Toy Story in merchandise sales
- “Attractive returns” on deal with Sony for Spiderman merchandise
- Record number of viewers on ESPN for the fourth quarter in a row
- Phineas and Ferb feature film coming in 2013
- Relaunching Disney.com next fall
- New Disney social media games coming in 2012
- Record revenue, profit, and earnings per share
- Media continues to be most profitable segment
- Domestic attendance up 1%, per capita spending up 9% on higher ticket costs
- Occupancy at domestic Disney owned resorts down 2% to 81%
- Increase in per room spending by 9% thanks to higher ticket prices and food costs
- Strategy to increase pricing to normal levels continues
- Parks and Resorts margins to expand in 2012, despite high cost of Carsland.
- “2011 was a great quarter for our company”
- Cruise ships contributing very well to revenue
- Booking window is still 14 weeks (time from booking to time of vacation) – same as last two quarters
- International visitation to Parks was strong.
- “Walt Disney World overperformed for the quarter internationally”
- Growth in attendance from Brazil more than makes up for lower attendance from UK
- Domestic guests behaving as they have in the past – growth in merchandise sales slower than food/beverage sales
- “Goal is to get folks back to the resorts at normalized pricing and pretty much once they’re there, they behave as they always have”
- 40% of rooms are in value category, 30% in moderate, and under 30% in deluxe categories in 2011. Ten years ago, it was one third to each. “Reason for this being we built more value resorts, enabled us to grow attendance and take market share.” “Captured a much greater percentage of their vacation spend.” “Actually going to be opening a very large value priced hotel, but also developing Four Seasons to open in three years.” Four Seasons is modest in size. “Strategy has worked very well.”
- Not worried about possibility of NBA season cancellation. Advertising dollars will be “quite diminimous (is that a word?)” as they transfer to other sports. “Would still prefer to have NBA season.” Doesn’t believe the NBA season being canceled will impact them negatively from a financial perspective. “They love to advertise on ESPN.”
Conference call concluded.
Read the 4th quarter report here: http://a.dolimg.com/investorrelations/2011/Q4/Q4_FY11_DIS_EARNINGS.pdf.
Standard and Poor’s has reiterated a “Strong Buy” after the earnings announcement, saying “Strengthening underlying trends at global theme parks arguably provided the most positive surprise.”
All in all, it sounds like a positive quarter, especially in the Media and Parks and Resorts segments, which are of course the most important to us ^_^