Disney Parks and Experiences: What We Learned from the Q1 FY25 Earnings Call

6 days ago in "The Walt Disney Company"

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Walt Disney Company headquarters in Burbank, California

Posted: Wednesday February 5, 2025 11:10am ET by WDWMAGIC Staff

Today's earnings call with CEO Bob Iger and CFO Hugh Johnston provided insights into Disney's Parks & Experiences segment, particularly regarding future growth, confidence in revenue projections, and new additions like Disney Treasure and Lightning Lane Premier. Here are the main takeaways:

Disney Confident in 6-8% Growth Projection for Experiences

CFO Hugh Johnston reaffirmed the company's 6-8% growth guidance for Parks & Experiences in FY25.
Strong Q1 results increased confidence in hitting these projections, despite hurricane-related losses and Disney Cruise Line pre-opening costs.
Johnston emphasized that the second half of the year, particularly Q4, will have easier comparisons and stronger performance expectations.

Disney Treasure Off to a Strong Start

Disney Treasure's launch exceeded expectations, with early guest feedback in line with the fleet's top-performing ships.
The ship is already projected to be profitable in its first quarter of operation.
This positive debut sets a strong foundation for future fleet expansion as Disney Cruise Line continues to grow.

Lightning Lane Premier Rollout Moving Slowly

Disney is intentionally taking a slow and cautious approach to the rollout of Lightning Lane Premier.
The goal is to ensure a strong guest experience for those purchasing the product while also balancing overall park operations.
While still early, Disney is monitoring uptake and guest sentiment closely, with expectations that it will build over time.

Summer and Holiday Bookings Looking Strong

Bookings for summer and the back half of the year remain positive compared to last year.
While Disney is maintaining its financial guidance, the company feels good about guest demand and forward-looking park performance.

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Disstevefan116 hours ago

What’s going to happen in the mid-2030s ?

flynnibus16 hours ago

You said... "Netflix lacks diversification. Streaming is having a moment. What happens when/if the world moves onto something else." Suggesting that this 'moment' thing is a liability to Netflix too.. I mean, I don't think I need to remind anyone that netflix didn't start as a streaming company... and that Netflix isn't only a streaming company any longer.. and is valued for it's brand, product, customer draw and base. How video is actually delivered changes constantly - It's why you can realistically watch Netflix on your phone now compared to even just a few years ago. The technology evolution isn't going to blindside or undercut Netflix. More likely in 5yrs from now you'll be talking about Netflix like you do Warner Bros instead of just as a 'streaming company'

disneylandtour17 hours ago

Methods of dominant delivery have changed every 15 or 20 years since the start of video. Yes, streaming is a massive change. I don't think it actually changed physical media--digital downloads mostly did physical media in before the big boom in streaming in or around 2018/2019. But also, in that, the audience--or some of them--is moving away from scripted productions entirely, which is the center of streaming. My kids are far more interested in YouTube than any studio streamer. All I'm saying is that these things are in an ongoing state of flux and to recognize that streaming is the center of distribution now, but that will likely change in the mid-2030s.

disneylandtour17 hours ago

There were DVDs and Blu-Rays for at least two Stranger Things seasons.

JD8017 hours ago

Uh streaming is not only a replacement for physical media as home entertainment its a replacement for a distribution network that was over the air and cable. Replace over the air and cable is a massive change in the ecosystem. Calling it a massive change is a vast understatement. It's like the advancement of going cross country on a train vs. an airplane. Not so much as technology but infrastructure and data usage. To flippantly say "eh there will be something new" just shows amazing ignorance.

disneylandtour17 hours ago

I didn't say video was a moment. Video has gone from air waves to cable to VHS to disc to downloadable options to streaming. I said streaming is having a moment. And I fully expect some new version of video delivery in fifteen or so years.

disneylandtour17 hours ago

I believe the thing that is not being said is this: the pandemic period further decreased the middle class and increased the wealth of those in middle/upper to upper categories. Disney does not specifically target the wealthy as a sector--those people tend to end up at Four Seasons or Ritz, not the Contemporary. But to the point: Disney seems to be saying that it's more profitable to focus on middle-upper households, as they spend more per cap, than on also creating ways for lower-middle families to come to Disney World. It's a repositioning on the wealth standing of the target customer which has a byproduct, also, of lowering attendance. And honestly, I think this strategy is very shortsighted, as Disney, for decades, has widely cast a net toward all families knowing that some of the kids will be hooked for life. Now that net is smaller. We can loop back in 20 years and see how it played out.

flynnibus1 day ago

You think video entertainment is ‘just a moment’?? The value in netflix is not a technology…

Dranth1 day ago

This sounds like a misunderstanding on how quarterly reports work. The report was comparing this last quarter to the same quarter last year and that is it. Anything listed on the report is trying to explain the difference between those two things. Disney lost a cruise ship sailing and a full day of parks at WDW in Q1 2025 (10/24-12/24) due to a hurricane vs. Q1 of 2024 (10/23-12/23) where none of that happened. Hence why it is mentioned. Without it people are making comparisons with incomplete information.

TrainsOfDisney1 day ago

I think the world already is. I’m a Disney fan and thought Disney+ had good content - but I really don’t have that much time to watch it and when I do have time I can look up stuff to watch on YouTube for free. I take enough trips by air that I catch up on Disney movies when I fly (took a while to find a plane that actually had Elemental - was not a popular one! Haha). The most valuable thing for me on Disney+ is muppets.

disneylandtour1 day ago

As a frequent visitor to WDW, I think this is mostly bunk. In the last nine years, hurricanes have closed the parks six times--sometimes for a longer period than the 2024 hurricane. In 2022, Disney World closed two separate times for two hurricanes. In recent years, large hurricanes to Central Florida have been more common. So one closure for one hurricane should be squarely within the realm of a standard Q4 or Q1 experience now for Disney. This would be like me saying, Hey, it took me longer to get home today after work because there was traffic--as there's heavy traffic most days here at 5pm. Nothing new.