News Round Up 2020

Brianstl said:
What revenue streams is Disney going to benefit from right now because of their buying spree? Movies aren't being released, ESPN and ESPN+ have no programing, and the parks and resorts which have always been Disney's safety net and main source of income are shut down. Disney has gone from a position of strength with it's debt load to a position of weakness as it is going to face a crisis like it hasn't faced before. Here are the solvency ratios for you over the last five fiscal years:


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But they have very little debt due this year. And the next 2 years.

And they have levers to pull to ensure liquidity. They have a huge pile of assets that they haven’t borrowed against if they need cash. They can cut the dividend if they need cash. They can stop capital projects if they need cash. They can stop advertising for theme parks and movies and sporting events if they need cash. They can accelerate their 21CF merger layoffs if they need cash.

Disney is in great long term shape which is why they’re in good enough short term shape.
 
News

Six Flags Magic Mountain and Discovery Kingdom closing.

480644

Six Flags St Louis also closing until next month.

SeaWorld is now the only major park operating in California.

Edit: Six Flags has closed all of its parks nationwide.
 
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Brianstl said:
What revenue streams is Disney going to benefit from right now because of their buying spree? Movies aren't being released, ESPN and ESPN+ have no programing, and the parks and resorts which have always been Disney's safety net and main source of income are shut down. Disney has gone from a position of strength with it's debt load to a position of weakness as it is going to face a crisis like it hasn't faced before. Here are the solvency ratios for you over the last five fiscal years:


View attachment 480638
Click to expand...

Aren't the hotels and Disney Springs/DTD still open for now? I imagine that they will bring in significantly less revenue than "normal" operations, but they will likely draw a few people who would otherwise be spending in the parks.
 
CastAStone said:
But they have very little debt due this year. And the next 2 years.

And they have levers to pull to ensure liquidity. They have a huge pile of assets that they haven’t borrowed against if they need cash. They can cut the dividend if they need cash. They can stop capital projects if they need cash. They can stop advertising for theme parks and movies and sporting events if they need cash. They can accelerate their 21CF merger layoffs if they need cash.

Disney is in great long term shape which is why they’re in good enough short term shape.
Click to expand...
The interest that they have to pay on that debt is $1.5 billion a year. I am not trying to say that Disney is going to go bankrupt, that isn't going to happen. But they are extended with revenue drying up with substantial expenses outside of the interest on their debt. The company is going to make some tough choices and find was to cut spending. I think the people that expect Disney to take on all kind of construction and maintenance projects during the shut down are crazy. Stuff is going to get delayed or canceled and not sped up. Jobs are going get, but I think they will avoid stop paying parks and resort workers as long as possible for PR reasons. I would be very worried if I worked at one of their studios or networks.
 
mollmoll4 said:
Aren't the hotels and Disney Springs/DTD still open for now? I imagine that they will bring in significantly less revenue than "normal" operations, but they will likely draw a few people who would otherwise be spending in the parks.
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They will be losing money at the WDW resorts with the occupancy rates they will have and the fact the are going to keep paying employees like normal at least for a time.
 
I'd think that for any of the parks still paying staff, they'd have many of them still come in to do refurb, clean up and fix up. It provides a good opportunity to work things they don't normal get to. I see large capital projects not currently underway being put on hold, though.

On going capital projects might actually see some acceleration and potentially savings as they shift the work to day time hours.

As far as incoming revenue they basically have ABC, Disney Movies and Merchandise sells, D+, and future vacation deposits (offset by paying out refunds).

This is where giving it so many D+ prepared plans is going to hurt.

This is why I'm glad I'm just an engineer and not having to figure this stuff out.
 
I've been trying to call all morning to actually EXTEND an early May getaway trip. Been busy signal since 6 a.m. Going to try and do it on MDE now. Hope I don't lose all my fastpasses that I maybe won't get to use anyway..... :tigger:
 
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