Q2 Earnings from Disney, SeaWorld, and Cedar Fair

WEBVTT

1
00:00:00.400 --> 00:00:05.040
From our studios in Orlando and Abu
Dhabi. This is green tag to theme

2
00:00:05.080 --> 00:00:09.119
park in thirty. I'm Philip.
He is Scott and this week we're going

3
00:00:09.160 --> 00:00:12.720
to discuss the Q two earnings from
all the different theme parks and kind of

4
00:00:12.839 --> 00:00:17.280
see where everyone is measuring up.
And it should be no surprise that Disney

5
00:00:17.359 --> 00:00:20.920
is at the top of the pack, leading the pack in this. They

6
00:00:21.800 --> 00:00:25.320
they have expanded their revenue, and
their attendance and their profit, so all

7
00:00:25.320 --> 00:00:28.920
three kind of metrics we're looking at
today, they have expanded. So they

8
00:00:29.000 --> 00:00:32.960
generated seven point eight billion in revenue
in the second quarter, a seventeen percent

9
00:00:33.000 --> 00:00:36.399
increase compared to the same quarter in
twenty twenty two. Their operating income was

10
00:00:36.439 --> 00:00:40.159
also up twenty two percent. That's
a big number, twenty two percent.

11
00:00:40.920 --> 00:00:44.920
Disney attributed most of the boost of
its recovery to its international parks, because,

12
00:00:45.000 --> 00:00:48.039
as we have been talking about,
the international parks are opening back up

13
00:00:48.039 --> 00:00:51.719
and they are seeing people come to
them and spend more money. So that's

14
00:00:51.759 --> 00:00:55.799
a big piece here. Attendance grew
at both Disney World and Disneyland, but

15
00:00:56.079 --> 00:01:00.520
profits dipped at Disney World, and
they're attributing that mostly due to higher costs,

16
00:01:00.520 --> 00:01:04.680
and we'll see as that theme continues
as they as they came to an

17
00:01:04.719 --> 00:01:08.840
agreement with the cast union of course
to increase rages, So I'm sure that's

18
00:01:08.840 --> 00:01:15.120
going to continue to adjust in that
area. So Disney said that. Disney

19
00:01:15.120 --> 00:01:18.799
executives said the company will continue to
focus on improving the guest experience at the

20
00:01:18.799 --> 00:01:22.760
parks, and in that vein,
they made several announcements that we've talked a

21
00:01:22.799 --> 00:01:26.719
little bit about, but they made
more clarification announcements just to the whole the

22
00:01:26.760 --> 00:01:32.640
whole guest experience part. Of course, we talked about the annual passes being

23
00:01:32.719 --> 00:01:37.719
back on sale, and those opened
up and sold, a significant chunk got

24
00:01:37.719 --> 00:01:44.359
out for both locals and non locals. They also announced previously that the passholders

25
00:01:44.359 --> 00:01:48.280
will not need reservations after two pm
to any place except Magic Kingdom on the

26
00:01:48.319 --> 00:01:52.879
weekends. So getting not quite back
to where we were in twenty nineteen,

27
00:01:52.879 --> 00:01:56.640
but getting closer to that where in
theory, if you are a passholder,

28
00:01:56.640 --> 00:02:00.400
you can go to any park after
two pm except for Me Kingdom on the

29
00:02:00.439 --> 00:02:01.519
weekend. So that's that's getting closer. You know, you could go to

30
00:02:01.560 --> 00:02:06.040
an evening at Epcot, which is
kind of a you know, back to

31
00:02:06.079 --> 00:02:07.919
that popular thing. Well, if
you're an annual passholder, you don't want

32
00:02:07.919 --> 00:02:14.520
to go to Magic Kingdom on so
correct. It was never an issue for

33
00:02:14.560 --> 00:02:17.960
me, you know, I never
at any moment wanted that in my life

34
00:02:19.120 --> 00:02:23.439
though, so they did. They
announced also that there's going to be good

35
00:02:23.439 --> 00:02:27.759
to go days for passholders in twenty
twenty four, which means essentially there will

36
00:02:27.759 --> 00:02:30.879
be days where passolders can go without
any reservation any time at any time of

37
00:02:31.000 --> 00:02:36.000
day, and in twenty twenty four, any dated tickets will not need a

38
00:02:36.000 --> 00:02:40.199
corresponding reservation because that is still a
thing, especially in Disneyland. Now that's

39
00:02:40.240 --> 00:02:44.240
all for Disney World. They haven't
really announced what's going on with Disneyland or

40
00:02:44.240 --> 00:02:47.800
how that's going to happen across or
if if it's going to come across in

41
00:02:47.840 --> 00:02:52.520
that way. They also announced the
return of the Dining Plan in twenty twenty

42
00:02:52.560 --> 00:02:54.960
four, which is a big deal, and they didn't talk about this,

43
00:02:54.960 --> 00:03:00.919
but we talked previously about how the
Galactic Star Cruise or was on sale,

44
00:03:00.080 --> 00:03:04.000
So they haven't announced if the sales
are going to continue or how that's going

45
00:03:04.039 --> 00:03:07.599
to move around, but but it's
pretty clear that they even though they're seeing

46
00:03:07.639 --> 00:03:12.479
an increased revenue that they are the
pendulum is swinging back right to where as

47
00:03:12.520 --> 00:03:15.639
we have We've been talking about for
a long time the state of equilibrium needs

48
00:03:15.639 --> 00:03:19.240
to be returned to the industry,
and it seems like that is coming back.

49
00:03:19.639 --> 00:03:24.080
Where now they need more attendance in
the parks, so they are opening

50
00:03:24.120 --> 00:03:30.120
up passes and they are bringing back
discounts than dining plans and incentives to have

51
00:03:30.400 --> 00:03:38.080
people visit more often. Yeah,
it's and and even not just to visit

52
00:03:38.120 --> 00:03:40.960
more often, but to make the
guest experience more palatable, to make the

53
00:03:42.039 --> 00:03:47.479
guests experience more fun. I mean, you know, we it is a

54
00:03:47.520 --> 00:03:52.360
weird story, but it kind of
ties into it. The overall guest experience

55
00:03:52.479 --> 00:03:54.199
is not just how much do I
enjoy the rides or how much am I

56
00:03:54.319 --> 00:04:00.960
dedicated to the ips. It's it's
removing all the obstacles there are in getting

57
00:04:00.000 --> 00:04:03.879
into the park. It's it's making
it a comfortable and fun experience when it's

58
00:04:03.879 --> 00:04:10.400
time to go have a have a
meal. And I've talked to several people

59
00:04:10.439 --> 00:04:14.800
actually, especially when it comes to
meal reservations, but um just reservations in

60
00:04:14.840 --> 00:04:16.920
general. I've talked to several people
who, unlike me, think it's the

61
00:04:16.920 --> 00:04:19.759
best thing in the world, and
they absolutely loved it. I've talked to

62
00:04:19.839 --> 00:04:24.040
significantly more people, however, who
have said, oh, I just won't

63
00:04:24.040 --> 00:04:27.399
go. It's it's too much of
a hassle. You know. It's like

64
00:04:27.480 --> 00:04:30.879
it's like planning my college schedule,
and that was no fun back then and

65
00:04:30.920 --> 00:04:33.959
it's no fun now. So,
um, I think this is a I

66
00:04:33.959 --> 00:04:38.000
think it's a very wise move,
and I think it's going to increase the

67
00:04:38.000 --> 00:04:44.240
the the quality of the overall guest
experience. And if they're going to truly

68
00:04:44.319 --> 00:04:46.879
invest the amount of money in Florida
that they say they're going to invest in

69
00:04:46.879 --> 00:04:55.040
Florida, they need to make certain
that they've got the the people, that

70
00:04:55.079 --> 00:04:59.279
they've got the guests flowing and the
guests flowing in. Because you know,

71
00:04:59.439 --> 00:05:04.959
if if there is indeed another gate
on the horizon, which nothing hasn't been

72
00:05:04.959 --> 00:05:10.199
announced to my knowledge yet, but
just looking at the amount of dollars they're

73
00:05:10.199 --> 00:05:13.759
claiming they're going to be investing into
Florida, it would suggest that there's going

74
00:05:13.800 --> 00:05:19.519
to be some large something something.
I mean, yeah, I'm hoping it's

75
00:05:19.519 --> 00:05:24.120
a new gate, but we'll see. But if that is indeed the case,

76
00:05:24.120 --> 00:05:28.800
they have to make certain that guests
will feel comfortable and will make it

77
00:05:28.920 --> 00:05:32.480
will be an easy experience for them
to come on in and join the party.

78
00:05:32.600 --> 00:05:39.399
Yeah, I do think that's that
reduction of friction is still a thing

79
00:05:40.199 --> 00:05:43.000
that's a little bit workshop, because
as you've talked about, Scott, you

80
00:05:43.040 --> 00:05:46.319
know, I think that a lot
of these things that they're announcing, they

81
00:05:46.360 --> 00:05:49.199
are making it overall better. I
mean, the fact that right now you

82
00:05:49.240 --> 00:05:56.040
still need a reservation for your dated
part ticket is kind of insanity a little

83
00:05:56.079 --> 00:05:59.399
bit. But I think the thing
that they're not addressing, what you've talked

84
00:05:59.439 --> 00:06:02.040
about a lot, which I'm wondering
about, is the reliance on the app.

85
00:06:02.079 --> 00:06:05.040
It seems like they're going more in
that direction instead of less in that

86
00:06:05.079 --> 00:06:08.920
direction. I mean, it almost
seems like you need to have a level

87
00:06:08.920 --> 00:06:13.000
of technical ability now there's there's really
almost no way around it. I mean,

88
00:06:13.040 --> 00:06:15.720
I was just thinking, I just
went to the park yesterday for the

89
00:06:15.759 --> 00:06:18.600
first time in a while, and
it was like, you know, you

90
00:06:18.600 --> 00:06:23.720
you have to add your annual pass
to your Google wallet so that you can

91
00:06:23.839 --> 00:06:27.680
pull up your wallet and it can
use it's you know, it's tap almost

92
00:06:27.680 --> 00:06:31.120
like tap and pay to access the
entry thing. And and then you need

93
00:06:31.199 --> 00:06:35.319
to make sure the reservations are like
there's there's a lot of there's a lot

94
00:06:35.360 --> 00:06:39.439
of stuff going on, you know, in the to make sure that you

95
00:06:39.439 --> 00:06:43.439
can, you know, just go
into the park. And then then you

96
00:06:43.480 --> 00:06:46.040
know, there's the there's the parking, and there's the heat. You know,

97
00:06:46.079 --> 00:06:49.160
there's all the regular things, but
then there's that layer of technology.

98
00:06:49.759 --> 00:06:53.439
I don't know, Scott, what
do you think about? I mean,

99
00:06:54.279 --> 00:06:57.720
I don't think it seems pretty clear
all the things that are announcing are not

100
00:06:57.959 --> 00:07:02.120
removing technology. And what do you
well, um, I I don't think

101
00:07:02.120 --> 00:07:05.560
that. I don't think you necessarily
need to remove technology because for most people,

102
00:07:05.680 --> 00:07:09.439
it is, you know, a
way of life. Um. You

103
00:07:09.480 --> 00:07:14.480
know, I'm I'm sitting here right
now with with my phone recording on my

104
00:07:14.600 --> 00:07:18.439
laptop, but it's it's it's a
way of life, um. And for

105
00:07:18.519 --> 00:07:24.439
the vast majority, especially of younger
families, UM, it's the way they

106
00:07:24.480 --> 00:07:29.639
live, you know. UM.
And and being being here um in the

107
00:07:29.759 --> 00:07:32.680
UAE. I don't think I've taken
a credit card out of my wallet since

108
00:07:32.720 --> 00:07:35.480
I arrived. You know, I'm
using it to pay for everything, so

109
00:07:36.079 --> 00:07:41.279
UM and and facial recognition and facial
pay is something that is just very commonplace

110
00:07:41.360 --> 00:07:49.240
here. So um it's it's something
that I think is going to eventually be

111
00:07:49.360 --> 00:07:55.120
the gold standard. And it's it's
certainly a way to appeal to guests coming

112
00:07:55.120 --> 00:07:59.000
in from outside the United States because
it's what they're used to in other countries.

113
00:07:59.600 --> 00:08:03.279
UM to utilize that technology. Now, the question is how is that

114
00:08:03.360 --> 00:08:07.000
technology? Is a tool, it's
a means, not an end. So

115
00:08:07.240 --> 00:08:13.000
how is how seamless is that technology? How well does it communicate with with

116
00:08:13.120 --> 00:08:20.639
various platforms, how user friendly is
it? And does it actually reduce or

117
00:08:20.759 --> 00:08:24.560
increase the amount of friction getting into
the park? Yeah? Those you know,

118
00:08:24.920 --> 00:08:28.279
should we use technology or not use
technology? I don't think we have

119
00:08:28.319 --> 00:08:31.439
an option anymore. I think the
options we are going to use technology.

120
00:08:33.600 --> 00:08:37.159
But at the same time, technology
the question is not really about the technology,

121
00:08:37.159 --> 00:08:43.840
it's about how it is being implemented
and what are the It was it

122
00:08:43.919 --> 00:08:48.559
difficult to get in without technology,
and now that we've shifted to a technological

123
00:08:48.600 --> 00:08:52.039
based system, is it going to
be difficult to get in then? And

124
00:08:52.080 --> 00:08:56.200
hopefully the answer is no. So
yeah, you know, we've kind of

125
00:08:56.200 --> 00:08:58.720
talked about it with other things where
we talk about the concepts are great,

126
00:08:58.720 --> 00:09:01.639
but how is it going to be
applied? In this particular case, It's

127
00:09:01.679 --> 00:09:05.919
technology is something that we're just is
just there and it is becoming a way

128
00:09:05.960 --> 00:09:09.840
of life, but how is it
being applied? I guess just like,

129
00:09:09.879 --> 00:09:13.799
do you think it's too much guest
training to kind of you know, because

130
00:09:15.200 --> 00:09:20.879
from my perspective as a seasoned Disney
person and as a pretty tech savvy person,

131
00:09:20.279 --> 00:09:24.200
it was like I didn't know how
to add this thing to my wallet

132
00:09:24.360 --> 00:09:28.519
so I could tap and pay to
enter the park, and you know that

133
00:09:28.639 --> 00:09:31.639
they had to help me with that
figure that out. And then of course

134
00:09:31.679 --> 00:09:35.080
I had kind of forgotten that there
was virtual cues for all the good rides,

135
00:09:35.120 --> 00:09:37.919
and then you know, there's there's
so many It's like who accepts annual

136
00:09:37.919 --> 00:09:41.840
pass holder discounts? And how do
we add this tap and pay to our

137
00:09:41.840 --> 00:09:43.600
wallet? And which riots have virtual
cues and what time with those virtual ques

138
00:09:43.639 --> 00:09:48.759
open up? All that is before
we even enter the park. And for

139
00:09:48.799 --> 00:09:52.080
me, I was a little like, oh that's that's this is I mean,

140
00:09:52.120 --> 00:09:54.279
just for me even myself, that
was a lot. So I mean,

141
00:09:54.320 --> 00:09:56.639
do you think that's what. But
again, I don't think that's tech.

142
00:09:58.000 --> 00:10:01.279
Is there too much technology? I
think that is there is sloppy technology.

143
00:10:01.559 --> 00:10:05.120
I think there is technology that is
having the same challenges that not having

144
00:10:05.159 --> 00:10:09.159
the technology had. I'm not opposed
to technology. What I'm opposed to is

145
00:10:09.200 --> 00:10:15.000
technology for technology's sake. What I'm
even more opposed to is technology that makes

146
00:10:15.039 --> 00:10:20.240
it easier for the company and not
for the guest. Technology should make the

147
00:10:20.639 --> 00:10:28.799
process simpler and more accessible to the
guest, um it than making it easier

148
00:10:28.840 --> 00:10:33.679
for the company. That's that's providing
it. Yeah, Well, like the

149
00:10:33.759 --> 00:10:37.399
security check scanners, that was one
area that I thought had improved greatly.

150
00:10:37.919 --> 00:10:39.840
You know where if I remember in
two that's nineteen, you know when people

151
00:10:39.840 --> 00:10:41.919
were still going through bag checks.
I mean they were, I mean,

152
00:10:41.960 --> 00:10:46.639
and now you're just you're just walking
through and the AI is scanning and if

153
00:10:46.759 --> 00:10:50.360
you if there's something that they think
could be a problem, then they put

154
00:10:50.399 --> 00:10:52.519
you over. But for me,
I just walked. I mean, it

155
00:10:52.600 --> 00:10:56.159
was that part of it. The
arrival experience was pretty seamless. You know,

156
00:10:56.200 --> 00:10:58.679
you parked, you walked, and
you just walked through up to the

157
00:11:00.279 --> 00:11:05.440
the ticket and that's it. And
that that was pretty seamless. So yeah,

158
00:11:05.480 --> 00:11:07.600
and you know, like I said, I think the technology, the

159
00:11:07.639 --> 00:11:11.759
technology that I'm seeing here, it's
still not one hundred percent, but it's

160
00:11:11.799 --> 00:11:16.720
being incorporated more and more, is
just facial recognition access. So imagine if

161
00:11:16.759 --> 00:11:22.519
you imagine, if you will,
the ability to walk through your your AI

162
00:11:22.600 --> 00:11:28.320
security screening, walk up to a
facial recognition screen and the turnstile opens and

163
00:11:28.360 --> 00:11:33.559
you walk in. Well, that
would be the next stop. Then walking

164
00:11:33.639 --> 00:11:37.000
up to you know, you walk
into the gift shop and you you pick

165
00:11:37.080 --> 00:11:39.039
up three things, and you walk
up to the register and you hold your

166
00:11:39.039 --> 00:11:41.480
face in front of the register.
They give you a receipt in a bag.

167
00:11:43.480 --> 00:11:48.399
Yeah, that's I mean, that's
what they're going towards here in various

168
00:11:48.519 --> 00:11:56.440
various parts that I've been to.
Well, I guess, I guess we

169
00:11:56.480 --> 00:11:58.799
will see, we will see exactly
Again, I think as long as the

170
00:11:58.799 --> 00:12:03.279
technology makes the guest experience simpler,
then it's good. But I think that's

171
00:12:03.279 --> 00:12:09.240
true whether we're using technology or not. That's my point. Well, continuing

172
00:12:09.279 --> 00:12:13.879
on with our discussion of this,
the other big element that came up in

173
00:12:13.919 --> 00:12:18.080
the Erniens call for Disney of the
course was the the you know, the

174
00:12:18.120 --> 00:12:22.360
litigation and the Ready Creek and all
that nonsense, and you know, basically

175
00:12:22.440 --> 00:12:26.799
during the Q and a section of
the Arniens call, Bob Iger just kind

176
00:12:26.799 --> 00:12:33.000
of reiterated their situation and emphasizing that
it's in their view it's a retaliation for

177
00:12:33.399 --> 00:12:35.360
free speech, and just kind of
putting out the facts out there to kind

178
00:12:35.399 --> 00:12:39.600
of dispel the common narratives from the
scantists, you know, stating out that

179
00:12:39.879 --> 00:12:46.480
there are over two thousand other special
districts in the state and it's it's not

180
00:12:46.600 --> 00:12:50.080
that special of an item, and
that just to clarify they do pay taxes.

181
00:12:50.120 --> 00:12:52.279
You know, kind of just kind
of taking all of the talking points

182
00:12:52.279 --> 00:12:56.080
and adding facts to them and just
kind of you know, putting the facts

183
00:12:56.080 --> 00:13:00.720
in place for the nan call.
And that's basically it. In the most

184
00:13:00.759 --> 00:13:03.720
recent move from De Santis, you
know, the Republican Congress is trying to

185
00:13:03.720 --> 00:13:09.840
remove Disney's no fly zone and they're
kind of they're again, we'll just see,

186
00:13:09.960 --> 00:13:11.720
I don't know, I'm just like, ah, this is I don't

187
00:13:11.720 --> 00:13:13.480
want to get too much into it, but basically they're kind of using reverse

188
00:13:13.519 --> 00:13:18.120
logic, like they're saying that having
the no fly zone there is a threat

189
00:13:18.159 --> 00:13:22.799
to national security. That is their
their point somehow. Um and even though

190
00:13:22.200 --> 00:13:26.000
you know originally is actually established in
the reverse, it was like, we

191
00:13:26.039 --> 00:13:30.440
don't want we don't. I mean, I think we even know plenty of

192
00:13:30.440 --> 00:13:33.679
people that do drone stuff and fly
all these things around, and that's kind

193
00:13:33.679 --> 00:13:37.639
of the main reason for the no
fly zone is you don't want you don't

194
00:13:37.679 --> 00:13:43.320
want drones and other aerial items just
kind of hanging around the parks where there's

195
00:13:43.399 --> 00:13:48.960
they could be over a lot of
guests or there's there's a lot of security

196
00:13:48.120 --> 00:13:52.120
in regards to all those things.
That was kind of the original. Well,

197
00:13:52.159 --> 00:13:54.080
and you got little things, you
got little things like fireworks and you've

198
00:13:54.120 --> 00:14:00.960
got little things like that. There's
there's a lot of Yeah, so it

199
00:14:01.080 --> 00:14:03.720
was a safety concern for them.
But yeah, I don't I don't know

200
00:14:03.799 --> 00:14:07.080
this. I don't know whether this
is true or not. But um,

201
00:14:07.159 --> 00:14:13.279
I know that at least at least
ten years ago, UM, Bush Gardens

202
00:14:13.279 --> 00:14:16.559
in Tampa was a no fly zone. And it's in the middle of a

203
00:14:16.720 --> 00:14:20.879
it's in the middle of a neighborhood, but you had to be above a

204
00:14:20.879 --> 00:14:26.360
certain altitude in order to fly over
over Bush Gardens, Tampa, So it's

205
00:14:26.399 --> 00:14:30.480
not something that's unique to Disney in
any way. Shamber form. Yeah,

206
00:14:31.000 --> 00:14:35.840
this is this is clearly a government
going after a large business, and um,

207
00:14:35.279 --> 00:14:41.960
it is it is. It is
anti it is anti business, which

208
00:14:43.039 --> 00:14:52.039
is absolutely diametrically opposed to so much
of the Republican rhetoric. Um. So

209
00:14:52.360 --> 00:14:56.960
sorry, it's it's it's hard opening
a new project. I'm sorry, it's

210
00:14:56.960 --> 00:15:00.559
it's been a long day. Um. So the idea is, the idea

211
00:15:00.799 --> 00:15:11.200
is that what is happening here is
not in line with Republican ideals. It

212
00:15:11.399 --> 00:15:16.240
is not in line even with the
rest of the current Republican party. This

213
00:15:16.320 --> 00:15:24.399
is something that is purely an unnecessary
I was about to use a very inappropriate

214
00:15:24.480 --> 00:15:30.679
term. It is it is a
contest in which um, we're trying to

215
00:15:30.720 --> 00:15:37.039
see who has the bigger litigation team. Um yeah, silly, it is

216
00:15:37.080 --> 00:15:41.919
silly. It is, But unfortunately
it could also could potentially be dangerous,

217
00:15:43.320 --> 00:15:46.879
mainly because not only of what it
what it does to Disney, but also

218
00:15:46.360 --> 00:15:52.679
what it would set precedent for other
companies that piss off the government. And

219
00:15:54.360 --> 00:15:58.440
so again I'm hoping that I'm hoping
that more and more people see this.

220
00:15:58.440 --> 00:16:06.000
We're starting to more and more Republican
voices turn against this because it is so

221
00:16:06.120 --> 00:16:12.960
against the basic tenants of the of
the Republican Party. So you know,

222
00:16:14.039 --> 00:16:19.320
hopefully we will see this go down
in flames, but but not flaming,

223
00:16:19.320 --> 00:16:25.120
because you can't do that in Florida. So anyway, okay, yes,

224
00:16:25.240 --> 00:16:29.480
so anyway, yes, that that
that that that's a nice recap. Basically,

225
00:16:29.480 --> 00:16:34.360
we don't want to episodes. I
just think it's it is important to

226
00:16:34.360 --> 00:16:38.320
recognize, you know, all those
things that were stated. Um, we're

227
00:16:38.399 --> 00:16:41.000
kind of doing, hopefully what I
just did, and that is to put

228
00:16:41.039 --> 00:16:48.759
some facts in some some perspective behind
the flamboyant language that's out there. Oh

229
00:16:48.919 --> 00:16:52.600
grief. Okay, well let's that
move move on now, we'll move on

230
00:16:52.679 --> 00:16:56.879
from Disney. Unfortunately, the other
parks have not been doing as well,

231
00:16:56.879 --> 00:17:02.440
you know, I think better,
arguably better, but as well. SeaWorld

232
00:17:02.559 --> 00:17:07.359
essentially has revenue up but attendance down, and they're still operating at a loss,

233
00:17:07.720 --> 00:17:11.240
even though all of their all of
their articles and press statements kind of

234
00:17:11.240 --> 00:17:15.680
gloss over that, but it is
still a loss. Just just to clarify,

235
00:17:17.559 --> 00:17:22.359
So, SeaWorld reported a revenue of
twenty two hundred ninety three point three

236
00:17:22.400 --> 00:17:26.680
million, which is up eight point
four percent for the first quarter, mainly

237
00:17:26.920 --> 00:17:30.519
driven by visitor spending in the parks, because they actually saw a decrease in

238
00:17:30.559 --> 00:17:34.640
attendance do mainly do they blame it
on weather in California basically because we've had

239
00:17:34.640 --> 00:17:40.119
some weather in California that has been
pretty cold and rainy, and it's they

240
00:17:40.400 --> 00:17:47.799
say it's been decreasing that. So
they still reported a loss of sixteen point

241
00:17:47.839 --> 00:17:51.160
five million. So even though their
revenue was up and their attendance was down

242
00:17:51.200 --> 00:17:53.720
there, they're still at a loss. But they point out it's less of

243
00:17:53.720 --> 00:17:56.319
a loss. It's like the least
amount of loss that they've had kind of

244
00:17:56.319 --> 00:18:02.160
since the pandemic era. So so
yeah, So basically their point is it's

245
00:18:02.200 --> 00:18:07.599
overall the revenue is overall trending up
and and the loss is reducing, so

246
00:18:07.640 --> 00:18:11.359
they are operating it less of a
loss, but it is still lost.

247
00:18:11.559 --> 00:18:14.680
Just one note though for all this, of course, is that a lot

248
00:18:14.720 --> 00:18:18.799
of these chains are a little bit
more seasonal, you know, some not

249
00:18:18.920 --> 00:18:22.799
not people are not in their full
schedules until summer and you know, and

250
00:18:22.079 --> 00:18:26.880
sometimes fall in winter, so that
that that's a big piece. They mentioned

251
00:18:26.880 --> 00:18:30.559
that Yeah, and I think it's
important to recognize, you know, we're

252
00:18:30.599 --> 00:18:34.000
not we're looking at trends. Yeah, we've always said that that's what the

253
00:18:34.039 --> 00:18:37.359
show is going to do. We're
gonna look at trends, and they're trending

254
00:18:37.480 --> 00:18:41.240
up. They're trending up. Yeah
they're not they're not out of the red

255
00:18:41.319 --> 00:18:44.880
yet, but they are trending up. And I think that's that that is

256
00:18:44.880 --> 00:18:48.640
fair, and it's and it's you
know, it's heading in the right direction.

257
00:18:48.279 --> 00:18:53.039
Um. I think the idea of
increased impart spending is a good,

258
00:18:53.160 --> 00:18:57.599
honestly a good long term plan.
Yeah. And and I hope it continues

259
00:18:57.680 --> 00:19:04.200
when they start to um recover some
of the attendants. Um, I've agreed

260
00:19:04.240 --> 00:19:07.680
to or whatever or whatever. But
but I think it's I think it's good

261
00:19:07.720 --> 00:19:11.599
to to to recognize people are spending, you know, in part spending is

262
00:19:11.640 --> 00:19:17.160
basically it falls into in my opinion, falls into three basic buckets, um,

263
00:19:17.880 --> 00:19:22.880
the souvenirs, food, and experiences
of charge experiences. So if they're

264
00:19:22.920 --> 00:19:27.880
offering some unique up charge experiences,
some great food, and some cool merch,

265
00:19:29.799 --> 00:19:33.799
golden, that is golden. Yeah. I also think that it gets

266
00:19:33.839 --> 00:19:37.240
us away from chasing attendance numbers.
You know, for so long, I

267
00:19:37.279 --> 00:19:41.200
think that has been everything, and
not just in theme parks. But you

268
00:19:41.240 --> 00:19:45.160
know, look at how much we've
been chasing views and chasing the number of

269
00:19:45.200 --> 00:19:48.839
eyeballs on ads or the Internet,
and just it's so much of chasing the

270
00:19:48.920 --> 00:19:52.480
numbers, you know, at I
think at the expense of the experience.

271
00:19:52.480 --> 00:19:57.599
And I'm hoping that we're kind of
reaching a different era where we can say

272
00:19:59.359 --> 00:20:03.759
less get but maybe increased spend or
a better experience for the guests that do

273
00:20:03.960 --> 00:20:07.079
arrive. I think I think it's
I think this is all the backdrop for

274
00:20:07.079 --> 00:20:11.279
that, because yeah, for them
to say our atten was down, but

275
00:20:11.279 --> 00:20:12.680
the revenue is still up and we're
still on the training up, I mean,

276
00:20:12.720 --> 00:20:17.920
that's that's clear that that the that
the spend park guess is higher and

277
00:20:18.079 --> 00:20:22.079
it's overall overall good thing. Well, another thing you have to recognize with

278
00:20:22.200 --> 00:20:29.319
a park and a chain like Sea
World is because so many of their parks

279
00:20:29.920 --> 00:20:33.960
are still animal based parks. UM, there is a spend there that the

280
00:20:33.960 --> 00:20:37.960
other parks simply don't have. UM. When you are dealing with with animal

281
00:20:38.000 --> 00:20:42.240
habitats and animal care, it's not
like a roller coaster that when the park

282
00:20:42.240 --> 00:20:45.720
closes, you flip it off,
You flip a switch and everything goes dark

283
00:20:45.759 --> 00:20:48.440
and everything's fine. Then you flip
it on the next morning and all is

284
00:20:48.480 --> 00:20:53.119
good. Um. With animal care, you must care for animals twenty four

285
00:20:53.160 --> 00:20:57.200
hours a day, three and sixty
five days a year. UM. So

286
00:20:57.799 --> 00:21:04.839
it's uh that that revet or that
expenditure is something that is going to eat

287
00:21:04.880 --> 00:21:11.279
into profits that wouldn't necessarily eat into
profits from a non animal based park.

288
00:21:11.559 --> 00:21:14.359
And yes, I know there are
people out there are going to say,

289
00:21:14.359 --> 00:21:18.440
well, what about Animal Kingdom,
And that's true, but the vast majority

290
00:21:18.440 --> 00:21:22.319
of their parks are not animal based
and do not have especially you know,

291
00:21:22.359 --> 00:21:27.119
water based parks because then you've got
water filtration and water care, which is

292
00:21:27.640 --> 00:21:33.960
huge and costly. So just to
kind of keep that in mind when we

293
00:21:33.960 --> 00:21:37.799
start talking about about the Sea World, the sea World properties. Sea World

294
00:21:37.839 --> 00:21:42.680
did also remind everyone on the earnings
call that Abu Dhabi is opening in several

295
00:21:42.720 --> 00:21:47.359
weeks. But obviously we're not going
to have the numbers or any information about

296
00:21:47.400 --> 00:21:49.160
that out yet, but they kind
of just put that as a reminder in

297
00:21:49.279 --> 00:21:56.119
terms of they're expecting that that once
that gets going, will kick them.

298
00:21:56.359 --> 00:21:59.240
You know into the green basically like
they're kind of hovering right now, and

299
00:21:59.240 --> 00:22:03.680
they're like they they expect that the
summer crowds plus then up opening of the

300
00:22:03.680 --> 00:22:07.680
new properties will will really increase the
profitability of the brand. So yeah,

301
00:22:07.920 --> 00:22:15.799
and expanding into the international market really
for the first time is potentially going to

302
00:22:15.839 --> 00:22:22.160
be a game changer. So we'll
have to see. And next up is

303
00:22:22.480 --> 00:22:29.720
Cedar Fair. Unfortunately Cedar Fair had
revenue down and attendance down and still seeing

304
00:22:29.839 --> 00:22:33.039
a loss, and quite a second
revenue down and attendance down and they saw

305
00:22:33.039 --> 00:22:37.440
a profit, then I would have
been concerned, well, or concerned or

306
00:22:37.960 --> 00:22:47.960
or said they've got it right right, So degree is this. Let's see

307
00:22:47.960 --> 00:22:52.200
the numbers here. Their net revenue
came to eighty five million and attendance of

308
00:22:52.240 --> 00:22:55.720
only one point one million guests or
the first quarter of the year, compared

309
00:22:55.759 --> 00:22:59.920
with net revenues of night nine million
and one point five in twenty twenty two.

310
00:23:00.359 --> 00:23:03.319
The job was attributed again to a
decline in the company seeing parks in

311
00:23:03.319 --> 00:23:07.799
California. Everyone's blaming California and their
weather for their losses. Cedar Fair has

312
00:23:07.799 --> 00:23:12.519
also reported an operating loss of one
hundred and twenty three million in Q one,

313
00:23:12.960 --> 00:23:15.519
with an operating loss of eighty four
million in the same period last year.

314
00:23:15.599 --> 00:23:19.279
So they're losing more than they were
and they're seeing less people and making

315
00:23:19.359 --> 00:23:23.839
less money, so they're not trending
up. They're not trending up. And

316
00:23:25.640 --> 00:23:29.200
the big thing they emphasize in their
calls was, you know, they're like,

317
00:23:29.519 --> 00:23:33.599
ah, California's weather is terrible and
everything is ah. But they also

318
00:23:33.640 --> 00:23:36.720
talked about how a lot of their
parks are seasonal and haven't opened, and

319
00:23:36.759 --> 00:23:40.480
that is true like Q one,
right, like Cedar Point. I mean,

320
00:23:40.680 --> 00:23:44.839
a lot of their parks are just
dark. So it really is much

321
00:23:44.920 --> 00:23:49.519
more disproportionately dependent on the California parks
to kind of carry it the ship,

322
00:23:49.559 --> 00:23:55.079
and then if they're not open,
that's a disproportionate impact. So I can

323
00:23:55.160 --> 00:23:57.640
see that. It's just that,
you know, it is, you know,

324
00:23:57.680 --> 00:24:03.319
a significant handed down from from last
year. But you know, we'll

325
00:24:03.319 --> 00:24:08.480
see, let's let's be fair,
you know, um, the if I'm

326
00:24:08.519 --> 00:24:15.759
not mistakened, I think Disney also
has a California park or two, and

327
00:24:15.680 --> 00:24:22.720
so I but that said, I
think the much bigger, the much bigger

328
00:24:23.079 --> 00:24:26.480
key factor here, and I think
Philip you just hit the nail on the

329
00:24:26.480 --> 00:24:30.079
head, and that is the seasonal
parks. Um Cedar Fair is significantly more

330
00:24:30.079 --> 00:24:36.079
of a seasonal company overall, and
so it's it's hard to make those comparisons

331
00:24:36.079 --> 00:24:41.279
in Q one when a bunch of
your parks ain't open. Yeah. Yeah,

332
00:24:41.440 --> 00:24:45.240
but that is a good point.
You know. Disney did talk a

333
00:24:45.279 --> 00:24:47.960
little bit about the weather as well, kind of impacting that stuff, but

334
00:24:48.000 --> 00:24:52.799
I think the impact was much less, and they're looking at more increased costs

335
00:24:52.799 --> 00:24:57.680
in Florida almost kind of overshadowing that
and and disney Land being fine. So

336
00:24:59.000 --> 00:25:02.160
I don't know, you know,
it's one of those things where I will

337
00:25:02.200 --> 00:25:04.000
tell you we went on some of
those days that were cold and rainy and

338
00:25:04.000 --> 00:25:07.480
we were still there and I was
like, how is it still an eighty

339
00:25:07.480 --> 00:25:11.640
minute wait for Peter Pan. I
don't know, it just doesn't seem to

340
00:25:11.680 --> 00:25:18.799
matter and dry inside. Yeah,
So so uh okay, looking outside of

341
00:25:18.799 --> 00:25:22.559
the Q one, So those are
our three main chains or Q one.

342
00:25:22.759 --> 00:25:26.400
You know, Disney doing very well
and on all metrics, and see world

343
00:25:26.920 --> 00:25:30.880
still at a loss but trending up, and cedre Fare just trending down.

344
00:25:30.960 --> 00:25:33.400
Although we'll give them, we'll give
them the caveat of their parts not open.

345
00:25:33.759 --> 00:25:38.319
Outside of all this, there are
people still struggling with staffing as we

346
00:25:38.400 --> 00:25:41.440
look to ramp up into summer.
So that's the big thing that Cedi Fair

347
00:25:41.519 --> 00:25:45.599
is saying. They're claiming, of
course that when their parts open for the

348
00:25:45.599 --> 00:25:48.680
summer, that's going to help everything. I think the asterisk there would be

349
00:25:48.720 --> 00:25:53.799
if they can staff them. I
think that's the asterisk here. And we've

350
00:25:53.839 --> 00:26:00.119
seen already. FunTown Splashtown has already
announced. So FunTown Splashtown is a small

351
00:26:00.119 --> 00:26:04.839
park in Sako Main and you'll remember
them from opening this year, mostly opening

352
00:26:04.880 --> 00:26:08.799
the Hunted Hotel dark Ride that Sally
is working on. That's their big opening

353
00:26:08.799 --> 00:26:12.680
for this year. So they have
decided to close every Monday this summer due

354
00:26:12.680 --> 00:26:17.839
to a lack of seasonal workers.
They're currently making improvements in preparation for the

355
00:26:17.839 --> 00:26:21.720
first season, including that dark ride, and they've tried raising the wages to

356
00:26:21.839 --> 00:26:25.799
above minimum wage as well to attract
more, but it's not quite getting there.

357
00:26:26.200 --> 00:26:29.160
The numbers are usually about five hundred
that they need to hire, which

358
00:26:29.200 --> 00:26:33.119
is actually not that many when you're
looking at like how many Cedar Fair needs

359
00:26:33.119 --> 00:26:37.920
to hire. But only about five
hundred, and they said that they're projecting

360
00:26:37.960 --> 00:26:41.799
they'll only get to three and that
right now they're at roughly two. So

361
00:26:42.039 --> 00:26:45.920
it's really I mean, they're looking
at maybe only being half of what they

362
00:26:45.960 --> 00:26:56.200
need to operate in a full season. So so I don't know. It's

363
00:26:56.240 --> 00:27:00.119
happening. It is happening everywhere everywhere. Yeah, happening everywhere, And it

364
00:27:00.279 --> 00:27:08.079
is not just the United States.
The parks here on Yas Island in Abu

365
00:27:08.160 --> 00:27:14.319
Dhabi are having the same staffing challenges. From what I understand they have,

366
00:27:14.799 --> 00:27:19.920
they haven't gotten to the point where
they are closing for full days. However,

367
00:27:21.599 --> 00:27:25.160
Um I did just experience it one
of the parks which shall remain nameless,

368
00:27:25.160 --> 00:27:29.279
but I did just experience it one
of the parks where they had announced

369
00:27:29.319 --> 00:27:33.200
a specific closing time and it was
on their website, and then when I

370
00:27:33.319 --> 00:27:37.799
arrived, they were closing the park
two hours early. So, um,

371
00:27:41.480 --> 00:27:44.920
there are there are drastic I mean, that is a drastic measure because that's

372
00:27:44.960 --> 00:27:51.119
two hours of that that's two hours
of in park spend that you don't get.

373
00:27:51.200 --> 00:27:56.240
Plus plus it means that some guests
will get there and recognize, Oh

374
00:27:56.279 --> 00:27:57.759
I thought I had four hours,
but I only have two hours. I'm

375
00:27:57.759 --> 00:28:02.319
not going to buy the ticket.
Yeah, because that is a trend here

376
00:28:02.319 --> 00:28:06.759
that I don't quite understand. But
culturally, there's a whole bunch of folks

377
00:28:06.759 --> 00:28:10.799
who will show up at a park
at two o'clock in the afternoon, and

378
00:28:10.880 --> 00:28:14.279
even if it's just half a day, that's fine. They'll they'll just come

379
00:28:14.319 --> 00:28:22.359
in and experience what they can in
the in the half day. So that

380
00:28:22.480 --> 00:28:26.359
said, when you start closing,
you start shortening your operating days or you're

381
00:28:26.440 --> 00:28:32.119
operating week. We'll see, we'll
see how it works. But it is

382
00:28:32.119 --> 00:28:34.839
a drastic measure and sometimes it's all
you can do. Yeah, I do

383
00:28:34.920 --> 00:28:40.039
think it's smart for them to announce
it before even opening, because again to

384
00:28:40.119 --> 00:28:45.039
your point, they're setting the expectation
instead of surprising people who might plan to

385
00:28:45.039 --> 00:28:48.599
come for their summer vacation to come
and plan to be there on a Monday,

386
00:28:48.200 --> 00:28:52.400
you know. And then yeah,
so I think it's smart, but

387
00:28:52.880 --> 00:28:56.519
I do think it doesn't portend well. You know. Of course, we're

388
00:28:56.519 --> 00:29:00.000
still trying to figure out all of
the staffing all over for see places everywhere,

389
00:29:00.000 --> 00:29:03.079
so I you know, we will
see. I mean that's the downside,

390
00:29:03.119 --> 00:29:06.799
right too. As we've talked about
multiple times, to the parks that

391
00:29:06.880 --> 00:29:11.240
rely on seasonal workers disproportionately that are
not open year round, and then you

392
00:29:11.279 --> 00:29:14.680
know, if you can't get your
seasonal staff, then you know here we

393
00:29:14.720 --> 00:29:18.519
are. But there is a seasonal
experience that has done very, very well,

394
00:29:18.519 --> 00:29:21.359
and I think, yes that you've
been to, which I've been to

395
00:29:21.519 --> 00:29:23.920
and thoroughly enjoyed. So I think
we need to end on a high note

396
00:29:23.920 --> 00:29:30.480
here in Dubai Global Village, which
just recently closed for the season, sets

397
00:29:30.519 --> 00:29:37.400
new attendance records after welcoming nine million
visitors nine million, nine million. Yes,

398
00:29:37.839 --> 00:29:41.400
Dubai's Global Village welcomed more than nine
million visitors during its twenty seventh season,

399
00:29:41.400 --> 00:29:45.519
the highest number of guests in the
festival park's history. Now, just

400
00:29:45.599 --> 00:29:48.640
to explain a little bit about what
Global Village is, and I'll try to

401
00:29:48.680 --> 00:29:52.160
do this as quickly as I possibly
can. It's sort of as if a

402
00:29:52.880 --> 00:30:02.200
mini World's Fair and a and a
County Fair and Law Vegas had a baby.

403
00:30:02.519 --> 00:30:06.720
Um it is. It is lots
of of splashy lights, It's lots

404
00:30:06.720 --> 00:30:11.559
of pavilions selling things representing different countries
around the world. Uh, it's lots

405
00:30:11.559 --> 00:30:15.160
of food. Um, it is
one of those it's one of those experiences

406
00:30:15.160 --> 00:30:18.319
where it costs very little to get
in. Um, but then you are

407
00:30:18.559 --> 00:30:22.759
I won't say nickeled and dimed,
but you have the ala carte experience for

408
00:30:22.920 --> 00:30:26.240
purchasing food, purchasing merchandise, purchasing
experiences. Um. There are a couple

409
00:30:26.279 --> 00:30:30.640
of rides. Uh, there's a
carnival. There's a carni section that has

410
00:30:30.880 --> 00:30:34.640
your your standard UM touring carnival rides. There's a pretty decent haunted house.

411
00:30:34.759 --> 00:30:41.119
Just saying, um, but but
it's it's one of those things that even

412
00:30:41.160 --> 00:30:45.400
when we went, it was packed
and significantly more packed than most of the

413
00:30:45.400 --> 00:30:49.119
theme parks in the area. Um. Obviously we just saw if you were

414
00:30:49.119 --> 00:30:53.279
following the news, you just saw
that that uh, the Bollywood park in

415
00:30:53.359 --> 00:31:00.160
Dubai most permanently. Um it's it
is. But Global Village, which is

416
00:31:02.480 --> 00:31:07.680
twenty minutes away is having record attendance. So um it's uh, it's interesting

417
00:31:07.680 --> 00:31:12.200
to see that things with lower price
points or more flexible price points, shall

418
00:31:12.240 --> 00:31:15.359
we say, so that you can
either go and set a blanket and bring

419
00:31:15.359 --> 00:31:18.680
your own food and sit and enjoy
the lights and the people in the craziness,

420
00:31:18.839 --> 00:31:25.519
or you can spend hundreds of dollars
on anything frozen or fried or you

421
00:31:25.559 --> 00:31:30.599
know, um, street food they
have they have a floating market, which

422
00:31:30.880 --> 00:31:37.119
is very cool. Um, pretty
much every Asian culture is represented in that

423
00:31:37.160 --> 00:31:41.519
floating market and great food being made
right there in front of you. Um.

424
00:31:41.559 --> 00:31:45.839
It is beautiful, it's exciting,
it is very real, and it

425
00:31:45.960 --> 00:31:52.200
is very affordable. So clearly they're
doing something right. Um. But it

426
00:31:52.279 --> 00:31:55.200
is seasonal. It goes away for
the summer because here, of course,

427
00:31:55.440 --> 00:32:01.839
the summer months are unbearable to be
outdoors. So so again, Global Village,

428
00:32:02.240 --> 00:32:06.519
they're doing something right. They're making
money and bringing lots and lots of

429
00:32:06.519 --> 00:32:09.440
people in. So that's something that
we would like to do, not necessarily

430
00:32:09.519 --> 00:32:12.920
the making money part, but bringing
lots and lots of people in. So

431
00:32:12.960 --> 00:32:17.319
if you're listening, please continue and
please share with all of your friends.

432
00:32:17.359 --> 00:32:22.640
Do remember that we have sort of
shifted our positioning as to where and how

433
00:32:22.680 --> 00:32:28.519
we can be found. The easiest
way probably is to go to Green Tag

434
00:32:28.599 --> 00:32:31.319
Show dot com and join us there. You can find all everything you need

435
00:32:31.359 --> 00:32:37.519
there, and then we also are
continuing to build our YouTube channel, so

436
00:32:37.319 --> 00:32:42.119
check us out there as well.
And there's more content coming there, so

437
00:32:42.400 --> 00:32:45.160
thank you for listening for another thirty
Well what are we at thirty almost thirty

438
00:32:45.160 --> 00:32:51.440
three minutes this week? Theme park
in thirty three close enough, So thank

439
00:32:51.440 --> 00:32:53.559
you again for being listeners and we
will see you next week