Galahad
.....an appointment
- Joined
- May 22, 2000
These three items were interesting. The first from the Motley Fool:
Mouse On the Mend
Is Disney (NYSE: DIS) on the rebound? Sure, entertainment conglomerates like Vivendi (NYSE: V) and AOL Time Warner (NYSE: AOL) are hitting new stock lows and it's not as if Disney's broadcast and cable interests are doing any better. However, it seems as if the company's once lethargic theme park business is bouncing back nicely.
If you know anyone who ventured out to Central Florida over the spring break season -- or have come across trip reports online -- you probably already know what Lehman Brothers was telling its clients this morning: Walt Disney World is booming. After last year's dramatic drop-off in attendance, fueled by a combination of factors including post-millennium doldrums and budget cutbacks that found the company going skimpy in the way of adding new attractions, the turnstiles are clicking again.
A lot was riding on the success of the season. Rival Universal Orlando (now with Vivendi lineage)was promising to green-light three new attractions next year if things panned out well earlier this year. Apparently, it has. Whether it is pent-up demand, peppered with the notion that the economy is improving, or simply kudos to the travel industry's marketing efforts, it couldn't come at a better time for Disney.
As its ABC network continues to languish in the ratings, Lehman now sees the Florida resort stronghold as contributing nearly a third of Disney's operating profits. While Lehman was drawing its data from robust airline traffic and high hotel occupancy rates, those who were there know it, too. Cramped at capacity yet excited to be away, it was a small world after all.
And this from CBS MarketWatch:
Disney parks seen on the rebound
By Russ Britt, CBS.MarketWatch.com
Last Update: 7:00 PM ET April 10, 2002
NEW YORK (CBS.MW) -- Walt Disney Co.'s theme parks may be on the mend, a development that could herald bullish revisions in earnings forecasts on the company, an analyst said Wednesday.
Stuart Linde of Lehman Bros. said he's taking another look at his first-quarter estimate of 10 cents a share now after finding out that airline traffic and hotel occupancy in and around Walt Disney World in Orlando, Fla., is showing signs of improvement.
"We believe the improvement at the parks could more than offset weakness in broadcasting and studio segments," Linde wrote in a research memo.
Receipts at Disney World, the company's biggest amusement park, account for nearly 30 percent of Disney cash flow, making it the single largest contributor to company coffers, Linde says.
Linde said that a recovery in the region's hotel occupancy and air travel was running ahead of expectations.
Hotel volume, which was off 1.2 percent year-over-year in March, had been down 6.5 percent in February and off nearly 15 percent in January, according to Linde. Air traffic to Orlando was off 14 percent in February and 21 percent in December.
Disney spokesman John Dreyer said the park has shown signs of improvement. The company, however, does not offer attendance figures.
"Business was such during Easter that they had to close the parking lots," Dreyer said. "We have cautious optimism."
Shares of Disney (DIS: news, chart, profile) closed up 98 cents to $24.05.
Disney is scheduled to report second-quarter earnings on April 25.
Russ Britt is a Los Angeles-based reporter for CBS.MarketWatch.com.
And this from Lehman Brothers:
[6:50am 04/10/02 Lehman: Disney parks may boost Q2 est. (DIS) By Emily Church
Lehman Brothers told clients overnight that Orlando airline and hotel traffic point to a rebound in Walt Disney's (DIS) theme parks business. "Investors should recognize that Walt Disney World represents nearly 30 percent of consolidated earnings before interest and tax. We believe the improvement at the parks could more than offset weakness in broadcasting and studio segments," analyst Stuart Linde said. Disney shares ended down 5 cents Tuesday at $23.07.
Looks like someone at Lehman spent their vacation in Orlando....
Mouse On the Mend
Is Disney (NYSE: DIS) on the rebound? Sure, entertainment conglomerates like Vivendi (NYSE: V) and AOL Time Warner (NYSE: AOL) are hitting new stock lows and it's not as if Disney's broadcast and cable interests are doing any better. However, it seems as if the company's once lethargic theme park business is bouncing back nicely.
If you know anyone who ventured out to Central Florida over the spring break season -- or have come across trip reports online -- you probably already know what Lehman Brothers was telling its clients this morning: Walt Disney World is booming. After last year's dramatic drop-off in attendance, fueled by a combination of factors including post-millennium doldrums and budget cutbacks that found the company going skimpy in the way of adding new attractions, the turnstiles are clicking again.
A lot was riding on the success of the season. Rival Universal Orlando (now with Vivendi lineage)was promising to green-light three new attractions next year if things panned out well earlier this year. Apparently, it has. Whether it is pent-up demand, peppered with the notion that the economy is improving, or simply kudos to the travel industry's marketing efforts, it couldn't come at a better time for Disney.
As its ABC network continues to languish in the ratings, Lehman now sees the Florida resort stronghold as contributing nearly a third of Disney's operating profits. While Lehman was drawing its data from robust airline traffic and high hotel occupancy rates, those who were there know it, too. Cramped at capacity yet excited to be away, it was a small world after all.
And this from CBS MarketWatch:
Disney parks seen on the rebound
By Russ Britt, CBS.MarketWatch.com
Last Update: 7:00 PM ET April 10, 2002
NEW YORK (CBS.MW) -- Walt Disney Co.'s theme parks may be on the mend, a development that could herald bullish revisions in earnings forecasts on the company, an analyst said Wednesday.
Stuart Linde of Lehman Bros. said he's taking another look at his first-quarter estimate of 10 cents a share now after finding out that airline traffic and hotel occupancy in and around Walt Disney World in Orlando, Fla., is showing signs of improvement.
"We believe the improvement at the parks could more than offset weakness in broadcasting and studio segments," Linde wrote in a research memo.
Receipts at Disney World, the company's biggest amusement park, account for nearly 30 percent of Disney cash flow, making it the single largest contributor to company coffers, Linde says.
Linde said that a recovery in the region's hotel occupancy and air travel was running ahead of expectations.
Hotel volume, which was off 1.2 percent year-over-year in March, had been down 6.5 percent in February and off nearly 15 percent in January, according to Linde. Air traffic to Orlando was off 14 percent in February and 21 percent in December.
Disney spokesman John Dreyer said the park has shown signs of improvement. The company, however, does not offer attendance figures.
"Business was such during Easter that they had to close the parking lots," Dreyer said. "We have cautious optimism."
Shares of Disney (DIS: news, chart, profile) closed up 98 cents to $24.05.
Disney is scheduled to report second-quarter earnings on April 25.
Russ Britt is a Los Angeles-based reporter for CBS.MarketWatch.com.
And this from Lehman Brothers:
[6:50am 04/10/02 Lehman: Disney parks may boost Q2 est. (DIS) By Emily Church
Lehman Brothers told clients overnight that Orlando airline and hotel traffic point to a rebound in Walt Disney's (DIS) theme parks business. "Investors should recognize that Walt Disney World represents nearly 30 percent of consolidated earnings before interest and tax. We believe the improvement at the parks could more than offset weakness in broadcasting and studio segments," analyst Stuart Linde said. Disney shares ended down 5 cents Tuesday at $23.07.
Looks like someone at Lehman spent their vacation in Orlando....
