Or is that Chickens Little? Let's take a deep breath everyone.
We are all concerned with the series of cuts Disney has imposed on the themeparks. Many of us are concerned that current management is no longer up to the task of leading this company forward. Some of us fear that the non-themepark related businesses are rotting the company from the core. An acquisition is possible (incidentally, consider a foreign buyer who would be compelled to spin off the broadcast businesses).
Whether Disney is or isn't acquired will likely be irrelevant to the themeparks and their ongoing viability. Despite all the cuts in hours, attractions and benefits, the theme park business remains Disney's most reliable and profitable business. The events of September 11 were anomolous and have not yet proven to be finanacially devastating to the themepark business.
Disney's most recent quarterly results for the 3 and 9 month periods ending June 30, 2001 reflect that the themepark business with revenue of $1.9 billion (3 mos period) and $5.3 billion (9 mos period) and operating income of $560 million (3 mos period) and $1.27 billion (9 month period). Thirty percent gross margins ain't bad; that's a lot of spinners and kiddie coasters!
The themepark business is comprised of the themeparks, resort hotels, Disney Cruise Line and Downtown Disney. This is a healthy business that throws off a ton of cash that will be temporarily impacted by the events of September 11. Interestingly, there were only 19 days in the last fiscal quarter of 2001 which ends on September 11. Given that the themeparks were immensely profitable in a declining economy before September 11, the very real possibility exists that the themepark businesses will suffer no loss during any fiscal quarter. Any loss incurred would likely be only for the first quarter of 2002.
All of these cutbacks and layoffs at the themeparks are not because the themepark business is losing money, but because the themeparks are subsidizing other failures throughout the company so that Disney as an overall entity can meet cumulative goals across its businesses for return on investment. Another Voice has pointed this out repeatedly with little success.
So feel free to defend the company, but nothing suggests that the themepark business will fold or even experience losses for more than a very short time.
Just my opinion.
DanG
We are all concerned with the series of cuts Disney has imposed on the themeparks. Many of us are concerned that current management is no longer up to the task of leading this company forward. Some of us fear that the non-themepark related businesses are rotting the company from the core. An acquisition is possible (incidentally, consider a foreign buyer who would be compelled to spin off the broadcast businesses).
Whether Disney is or isn't acquired will likely be irrelevant to the themeparks and their ongoing viability. Despite all the cuts in hours, attractions and benefits, the theme park business remains Disney's most reliable and profitable business. The events of September 11 were anomolous and have not yet proven to be finanacially devastating to the themepark business.
Disney's most recent quarterly results for the 3 and 9 month periods ending June 30, 2001 reflect that the themepark business with revenue of $1.9 billion (3 mos period) and $5.3 billion (9 mos period) and operating income of $560 million (3 mos period) and $1.27 billion (9 month period). Thirty percent gross margins ain't bad; that's a lot of spinners and kiddie coasters!
The themepark business is comprised of the themeparks, resort hotels, Disney Cruise Line and Downtown Disney. This is a healthy business that throws off a ton of cash that will be temporarily impacted by the events of September 11. Interestingly, there were only 19 days in the last fiscal quarter of 2001 which ends on September 11. Given that the themeparks were immensely profitable in a declining economy before September 11, the very real possibility exists that the themepark businesses will suffer no loss during any fiscal quarter. Any loss incurred would likely be only for the first quarter of 2002.
All of these cutbacks and layoffs at the themeparks are not because the themepark business is losing money, but because the themeparks are subsidizing other failures throughout the company so that Disney as an overall entity can meet cumulative goals across its businesses for return on investment. Another Voice has pointed this out repeatedly with little success.
So feel free to defend the company, but nothing suggests that the themepark business will fold or even experience losses for more than a very short time.
Just my opinion.
DanG