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  • News Bad economic news for Disney

    Decline in bookings (as well as advertising on networks).

    "
    The news came as the No. 2 U.S. entertainment company reported a 13 percent decline in quarterly net income due in part to a bad debt charge. Revenue, however, topped Wall Street analysts' estimates.
    "We kind of expected a rapid deceleration, but this is even worse than even we or investors were expecting ... in its severity and in how fast this is affecting them," Pali Capital analyst Rich Greenfield said of the theme parks results."


    Story here:

    Finance News - Economic downturn hits Disney, shares slide

    A bientot.
    Remember
    What the dormouse said
    Feed your head!

    sigpic

    You've read it; you can't unread it!

  • #2
    Re: Bad economic news for Disney

    It's front and center on the Drudge Report right now, with the headline "GRUMPY, SLEEPY, SLUMPY: BAD ECON HITS DISNEY".

    There's also a picture of Hong Kong DL's Sleeping Beauty Castle...
    Finish each day and be done with it. You have done what you could. Some blunders and absurdities no doubt crept in; forget them as soon as you can. Tomorrow is a new day; begin it well and serenely and with too high a spirit to be encumbered with your old nonsense.

    ~Ralph Waldo Emerson

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    • #3
      Re: Bad economic news for Disney

      The discounted rates for 2009 are already in place. I was quoted rates last week that were 35-40% lower than the rates we paid last year at a comparable time.
      Originally posted by SummerInFL
      Jesus, even I wouldn't eat that.

      Originally posted by Wanda Woman
      Turtle, the dorks are going to take upskirt robot pics.

      Comment


      • #4
        Re: Bad economic news for Disney

        I imagine there will be a lot of uncertainty about whether or not Disney will follow through with their DCA investment based on today's reports. I recommend listening to the webcast posted on Disney's corporate info. Iger and Staggs expressed their commitment, confidence, and optimism about the investment into DCA and the expansion of DCL and DVC. Those investments are committed while the company is overly cautious with future investments.

        A lot of what we have already read here and other fan sites.
        "If you build it right, they will come." - Bob Iger

        "I'm not a literary person. As far as realism is concerned, you can find dirt anyplace you look for it. I'm one of those optimists. There's always a rainbow." - Walt Disney



        "I don't care about critics. Critics take themselves too seriously. They think the only way to be noticed and to be the smart guy is to pick and find fault with things. It's the public I'm making pictures for." - Walt Disney

        Comment


        • #5
          Re: Bad economic news for Disney

          Well Bob Iger did say they will still continue on with investments that will have a positive effect on their long-term goals when talking about the theme parks division. So without him saying it directly, one can just hope that includes DCA's continued makeover.

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          • #6
            Re: Bad economic news for Disney

            I had a feeling that this was going to happen. I wonder if Rasulo and others will regret going with the price hike on admission prices earlier this year. I'm sure we'll see the usual twofer offers in the Spring, but with jobless numbers at a 14 year high and spending on EVERYTHING slowing down, I think that big Disney vacation becomes more of an impossibility for many families. I have to wonder if AP sales will drop off as well.

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            • #7
              Re: Bad economic news for Disney

              My guess is we will see much more aggressive promotions and deals to bring more people to the parks. I anticipate significant ticket price discount reductions and perhaps reduction of hours during non peak days. If the terrible economic situation keeps up for too long I could imagine a reduction of operation days might be in the cards. Perhaps like in the old days when the park was closed one day a week. Hopefully things nationally and globally turn around although it is going to take some time.

              As our good friend once said,
              "Hang on to them Hats & Glasses, Cuz This Here's the Wildest Ride in the Wilderness"
              I hope and pray that things turn around for the better economically for us all.

              Comment


              • #8
                Re: Bad economic news for Disney

                Originally posted by AaronInCal View Post
                Well Bob Iger did say they will still continue on with investments that will have a positive effect on their long-term goals when talking about the theme parks division. So without him saying it directly, one can just hope that includes DCA's continued makeover.
                DCA was specifically mentioned by both Iger and Staggs during Q&A along with a specific story of Iger's last visit to DLR this past Sunday.
                "If you build it right, they will come." - Bob Iger

                "I'm not a literary person. As far as realism is concerned, you can find dirt anyplace you look for it. I'm one of those optimists. There's always a rainbow." - Walt Disney



                "I don't care about critics. Critics take themselves too seriously. They think the only way to be noticed and to be the smart guy is to pick and find fault with things. It's the public I'm making pictures for." - Walt Disney

                Comment


                • #9
                  Re: Bad economic news for Disney

                  So who/what didn't pay their debt to Disney?

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                  • #10
                    Re: Bad economic news for Disney

                    To make matters even worse, the Govenator has proposed adding sales tax to "amusement park" tickets - a raise in the ticket price that Disney cannot control...

                    "His proposal represents a widening of California's sales tax, matching tax structures in effect in New York, Texas and Florida and other states. For the first time, it will be applied to services such as vehicle repairs, appliance and furniture repairs, veterinarian services and even greens fees for playing golf. The first wave will take effect Jan. 1. By spring, the state will begin collecting sales tax on tickets to amusement parks and sporting events. "

                    full story on signonsandiego.com and every other online news site.
                    Last edited by sdmom; 11-07-2008, 08:33 AM. Reason: typo

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                    • #11
                      Re: Bad economic news for Disney

                      oh joy ( sarcasm).

                      Comment


                      • #12
                        Re: Bad economic news for Disney

                        Originally posted by sediment View Post
                        So who/what didn't pay their debt to Disney?
                        Lehman Brother's...

                        $92 million is owed to Disney since Lehman failed. It definitely effected their bottom line in Q4.
                        "If you build it right, they will come." - Bob Iger

                        "I'm not a literary person. As far as realism is concerned, you can find dirt anyplace you look for it. I'm one of those optimists. There's always a rainbow." - Walt Disney



                        "I don't care about critics. Critics take themselves too seriously. They think the only way to be noticed and to be the smart guy is to pick and find fault with things. It's the public I'm making pictures for." - Walt Disney

                        Comment


                        • #13
                          Re: Bad economic news for Disney

                          I guess we were all expecting this sooner or later, hopefully the studio has a good year in the enetrtainment division. Disney has some big movies coming out during the next couple months.

                          By the way BOLT is a great movie lets put our support behind it guys/gals

                          Comment


                          • #14
                            Re: Bad economic news for Disney

                            Yeah I figured they'd be hurting... I usually take 2/3 trips a year to the parks but this year i've only been able to book just one!

                            Why oh why just one!!! But I am thankful this holiday turkey season that I can take at least 1 trip to the parks.

                            Comment


                            • #15
                              Re: Bad economic news for Disney

                              Disney shares recover after results spark early selling - MarketWatch

                              Disney shares recover after results spark early selling
                              By Russ Britt & David B. Wilkerson, MarketWatch
                              Last update: 2:30 p.m. EST Nov. 7, 2008

                              LOS ANGELES (MarketWatch) -- Wall Street and investors sounded the warning call Friday after Walt Disney Co. appeared at last to succumb to a difficult economy by reporting earnings that came up short of estimates, but some analysts maintained that the blue-chip company's fundamentals were strong.

                              While they plunged more than 8% shortly after the open, shares of Disney turned higher as the session progressed. The shares swung to a gain of 5%, to $23.97, in afternoon trading.

                              The earnings report caused many analysts to adjust their estimates for a company that has seemed largely immune to troubles that other firms were experiencing in the face of a crumbling economy.

                              S&P analyst Tuna Amobi cut his rating on Disney to "hold" from "strong buy" after the earnings report was released late Thursday, slashing his price target by $7, to $25.

                              "In a sobering near-term outlook, Disney sees further sharp deterioration in park bookings and ABC/ESPN ads, while halting share buybacks," Amobi wrote in a morning note to clients.

                              Other analysts noted, however, that it was Disney's first earnings shortfall to come along in some time.

                              Doug Mitchelson of Deutsche Bank maintained a buy rating on Disney, noting that recent weakness in the stock seems to have been the result of bracing for the day when recession-like conditions would hit Disney.
                              "Unlike some peers, Disney's challenges are predominately cyclical, not secular," Mitchelson wrote in his note. "Currency risk is fully hedged. Its brands remain strong and growing, and barriers to entry in its businesses are very high."
                              "If you build it right, they will come." - Bob Iger

                              "I'm not a literary person. As far as realism is concerned, you can find dirt anyplace you look for it. I'm one of those optimists. There's always a rainbow." - Walt Disney



                              "I don't care about critics. Critics take themselves too seriously. They think the only way to be noticed and to be the smart guy is to pick and find fault with things. It's the public I'm making pictures for." - Walt Disney

                              Comment

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