Conference call concluded.
“The typical trend in bookings is that interestingly the earliest things that are booked are the highest end rooms for those that want to be ‘the closest to the magic’ and value guests that want to book in an economical way…and then tends to close in the middle…we start to trade people up in rooms when the value segment tends to fill.”
“Not going to break out specific revenue from Disney Dream.” “Pleased with bookings.” “Disney Cruise Line 95% booked for Third Quarter.”
“Room rate increases are definitely sticking.” They seem willing to take a hit in bookings in order to raise prices.
“Domestic Parks moderate margin improvement” if adjusted for Easter holiday (Easter is part of Disney’s third quarter this year).
“We worked really hard to ween the consumer off discounts.” “The goal remains the same for Quarter Three.” Pricing is up in the double digits, but bookings are down 2.5%. “They [consumers] are still booking late…expecting discounts.” “Never been the case” that gas prices have factored into attendance.
Domestic theme park attendance was flat compared to last year. Adjusted for the late Easter holiday, theme park attendance was up 2% over last year. Per capita spending was up 6%. Occupancy at Disney resorts was up 1% to 81%. Per room spending up 4%.
Update: Disney missed on both revenue and earnings per share. Revenue came in light at 9.08 billion and earnings per share was 49 cents. The stock is trading down 2.3%.
“Results for the quarter were driven by decreases at Disney Cruise Line and Tokyo Disney Resort, partially offset by increases at our domestic and consolidated international parks and resorts. The decrease at Tokyo Disney Resort was driven by the March 2011 earthquake and tsunami in Japan which resulted in a temporary suspension of operations at the resort. Results at both our domestic and international parks and resorts reflected an unfavorable impact due to a shift in the timing of the Easter holiday relative to our fiscal periods.”
Just a heads up that the Walt Disney Company is expected to release its second quarter earnings after the closing bell today, sometime after 4pm. Disney is expected to earn 57 cents a share on 9.11 billion dollars in revenue. The stock is currently up 1.32% to $43.67 with a 52-week range of $30.72 – $44.34. A positive report could send the stock to an all-time high. I will be listening to the conference call and will report any interesting tidbits. We may hear a little bit about theme park attendance and hotel occupancy rates.