How Disney Views Universal Epic Universe's Opening: Insights from CFO Hugh Johnston

8 days ago in "The Walt Disney Company"

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Posted: Thursday November 14, 2024 9:10am ET by WDWMAGIC Staff

Disney CFO Hugh Johnston briefly addressed Universal EPIC Universe's Memorial Day Weekend opening and its potential impact on Walt Disney World during Disney's Q4 Financial Results Conference Call today.

Universal Epic Universe - Front Gate

When asked about Disney's expectations for the new park's opening, Johnston emphasized that Disney had considered it when setting projections for their parks and experiences division.

Here's a breakdown of Johnston's key points:

Integration into Projections: Disney accounted for Universal EPIC Universe's 2025 launch in their forecasts, suggesting it won't disrupt Disney's growth expectations for theme park experiences.
Positive Early Indicators: Johnston mentioned that early bookings for Disney's summer 2025 season remain strong.
Historical Perspective: Reflecting on past theme park openings in Florida, Johnston noted that the increased tourism benefits both Disney and the broader local market. Disney expects the same boost in visitor interest from Epic Universe.

Investors have repeatedly asked Disney Executives about the impact of Universal Epic Universe. Speaking in April 2024, Disney CEO Bob Iger said, "We've been aware of Universal's plans for a new park for more than a decade. And we have a sophisticated approach to analyzing the needs of all of our businesses and strategically deploying capital."

He went on to list recent openings at Walt Disney World, including Star Wars Galaxy's Edge, the EPCOT transformation, and TRON Lightcycle Run at Magic Kingdom.

Nova Corps Starblaster with Spaceship Earth and Monorail passing by Guardians of the Galaxy Cosmic Rewind

Iger continued, "By staggering these major launches, we've been able to commercially and operationally optimize our new offerings over time, rather than having to do it all at once. And based on the guest experience that we've heard all about, from all of these items that I just mentioned, we know that they're extremely popular and they're serving our guests extremely well."

Universal Epic Universe – Bird’s-Eye View map

According to Universal, "Epic Universe will present a level of theme park immersion that is unmatched – transporting guests to expansive worlds featuring more than 50 awe-inspiring attraction, entertainment, dining and shopping experiences that come together to create an unforgettable adventure that is nothing short of epic. The addition of Universal Orlando's fourth theme park will also transform the award-winning resort into a weeklong vacation destination filled with even more compelling experiences. "

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JoeCamel6 days ago

Yeah, what happens the second half of next year? I wonder.....

NotCalledBob6 days ago

Good news things are looking up on the bookings front for the second half of next year. Not for me though, because I'm booked to go the second half of next year... The FT suggests that there is growing impatience over the CEO issue. https://www.ft.com/content/dc095b16-a83a-485c-9657-128af30789cd

Sir_Cliff7 days ago

Yes, I would think signs like Disney experiencing attendance as soft as Uni Orlando this year or bookings for next year appearing unusually soft might ring some alarm bells about fans cancelling or delaying trips due to excitement for Epic Universe. The early signs, though, are that managing the attendance shifts among the different Orlando parks is more of a concern for Uni than Disney.

MisterPenguin7 days ago

https://deadline.com/2024/11/disney-stock-rises-streaming-wall-street-1236177953/

MisterPenguin7 days ago

I hear this every year. By now, everything should be shuttered, no?

HauntedPirate7 days ago

Stop stealing their tagline! "Epic Universe - Prepare to be whelmed!"

Kamikaze7 days ago

Epic Universe is going to be perfectly whelming. It won't make a major difference in WDW attendance.

BrianLo7 days ago

Based on what current evidence? Maybe the rabid fandom has been wrong all this time? Disney is already saying their summer bookings look stronger and they expect to be up for attendance in the back half of the year post-Epic. Universal seems currently far more impacted and WDW bookings are actually projecting to be up once Epic opens. Comcast are the ones that need to justify that the expense paid off. Based on possible inflated projections, I'm far more worried for Comcast being caught off guard than Disney at this point. Certainly the fandom that thought Universal attendance would instantly increase 150% don't know their history very well; it's going to be a rough ride if internally Comcast was expecting more instant returns.

Greg from Philly7 days ago

Disney and Disney Management are really clueless. There are insiders that are saying they are terrified of the opening of Epic Universe...how can they not be?? If they arent, they really are stupid

IanDLBZF7 days ago

Where did you hear this?

Sir_Cliff7 days ago

I feel like for as long as I have been online I have been reading claims about how Disney is manipulating their numbers in various ways from closing large sections of their resorts to pretend they are fuller than they really are to simply lying in their quarterly reports. Accepting all of that, I am surprised the whole house of cards hasn't collapsed yet, leaving bankruptcies, prison sentences, and a baron wasteland where WDW once stood in its wake.

Chi847 days ago

Maybe someone could re-share the information on which buildings are shuttered? We just returned from a stay at SSR and it was very busy.

BrianLo7 days ago

I mean it doesn't really matter at this point and they probably do have the sections closed you think they do. But the SEC filings include the closures and the occupancy rates ultimately reflect those assumed closures. We're 5% below 2019, which jives with likely closures, but nor is it a historical recessionary bottoming or seemingly worsening.