WEBVTT
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Okay.
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This week from our studios in Orlando and Tampa, in
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the same time zone, on the same coast in the US,
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this is Green Tag Theme Park and thirty. I'm Philip
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and I'm joined as always as I am every week
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by my co host Scott Swinston a Scott.
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Swins animated no matter howard you try, and I'm always here.
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You know, a lot of people asked to be a
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guest on the show, Scott, and I was like, if
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you can point to another guest we've.
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Had, Yeah, I was just going to say, well, it's funny,
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so just let's address it for just a second. One
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of the things that we did at the very beginning
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when we first started doing the show is we said
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we did not want this to become a talk show.
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We did not want this to become a show where
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we bring on guests. We did not want this to
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become a show where we do anything other than review
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the news from an industry standpoint based on our experience
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and our exposure to said news and now there we
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have had some discussions about maybe expanding that for you know,
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other platforms, et cetera.
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But the idea is that this we've remained.
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True to who we are, what we wanted the show
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to be, and I think that the people who are listening,
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you know, we've discovered, I've discovered completely by happenstance, that
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many of our listeners are very dedicated to what we
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have to say, because one of them actually told me
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not too long ago, because I always know I'm going
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to not necessarily agree with you, but I'll always be
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introduced to something I should know about because I'm in
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the industry, and that's been the point of this show
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from the get go.
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So I we stick by it.
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And you know, that's not to say that we won't
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do some other thing somewhere at some other time that
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doesn't have interviews and that sort of thing, but it's
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just it's the way we set out to do the
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show and we've decided to continue to stick with it
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because we believe that this is the right way to
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do it.
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For us, so hopefully it's the right way to do
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it for you too who are listening. So thank you.
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And plus I'm lazy. I don't really want to change
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the format. That's more work. Halloween is coming, I haven't
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got time.
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The epis the way.
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Who does all the work for this show anyway, I
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just show up in talk so you know it's.
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Yeah, okay, okay.
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So today we think we'd start off by talking about
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the earnings reports. Now, what happened, as is always the case,
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and you know, it's fine, give it to them, this
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is how everyone does it.
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But what happened was.
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Disney the earnings came out right before D twenty three,
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and they were not I think as robust as I mean,
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everyone always wants everything to be incredible, right, that's that's
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not personally, that's not how the markets should go. You know,
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at some point you need the markets to crash because
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that's when the new the younger generation can invest at
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you know, good amounts. And I mean that's how it's
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It's normal for things to go up and down. A
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cyclical thing is normal. Everything can't go up constantly. But
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obviously that it it's always you know, not great news
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whenever there's a little bump in the road. And I
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think that D twenty three definitely was designed to cover
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up the this and it worked because the news, well,
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no one was talking about the earnings. It was all
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about the announcements of the twenty three made so so
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just so you know these This is kind of like
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old news, but we didn't We even didn't talk about
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it last week because we're busily with the D twenty
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three stuff.
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So because we're talked about yeah, I was gonna say
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we were buried at D twenty three.
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Yeah.
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So I'm going to read some excerpts here from different
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statements and then we'll talk about it. So I'm pulling
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this one from Impark Insider, but this is this was
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also quoted from their Disney's a press release and their
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their statement for their earnings. So the Disney Experiences segment,
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which includes the parks, Disney Cruise line, and consumer products,
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reported an eight point three eight in billion revenue for
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the quarter, up two percent from the prior year, and
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two point two to two billion in operating income, a
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decline of three percent. So they saw revenue up but
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operating income decline, So higher costs is what they cited
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in the decline operating income for the US parks US specifically,
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which we're down six percent to one point three seven
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billion for the quarter. Internationally, operating income was up two
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percent for the quarter, so the US stuff was down
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and the international stuff was up. Dissere remported higher attendance
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and occupied room nights at its international properties. The company
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said that the attendants at its ux parks was comparable
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to the prior year, and that per capita guest spending
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was slightly up. In a statement, they said that we
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expect that the demand moderation we saw in our domestic
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businesses in Q three could impact the next few quarters.
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While we were actively monitoring attendance and guest spending and
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aggressively managing our cost space. We expect Q four Experiences
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segment operating income to decline by mid single digits versus
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the prior year, reflecting these underlying dynamics, as well as
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impacts at Disneyland Paris from the reduction in normal consumer
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travel due to the Olympics and some cyclical softening in China.
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I actually thought that was a great statement. I mean,
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you know, do I still wish that they had talked
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about what they're going to do to shore up demand
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in summer months and add more water. Sure, But you
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know what, I'll take this one because I liked that
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they a kind of setting it like, hey, we're normalizing,
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you know, this is normal. We expect a little bit
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of a dip in these next few quarters, you know,
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even though everybody expects always Q three and Q four
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to be ridiculous because of Halloween and Christmas. They're like,
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we're gonna, you know, moderate your expectations with that. And
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I like how they cited the Olympics and you know,
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the cycnical softening and China, Like I'm glad they kind
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of were like, here's some stuff that you know that
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we know is happening. We're pointing to these decline in
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mid single digits at the next few quarters.
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So I thought that was a good statement.
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I'm sure you know, the markets were not happy, because
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markets are never happy that anything that's not going up
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into the right.
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But I think this is fair. What do you think,
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Scott No, I agree.
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I agree. I think that what they're trying to do
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here is normalization.
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To report that we are normalized, we're starting to normalize
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after a pandemic is not what any stockholder wants to hear. Yeah,
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you know, it's it's not what anybody really wants to
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report either, because it's like, yes, things are back to normal.
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Nobody wants to hear that. They want to continue to
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hear that there is growth, growth, growth, growth, growth. I've
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even had discussions with some other organizations that I've been
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involved with where if there's not a percentage growth year
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over year over year, then they consider the event or
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the park or the attraction or whatever a failure.
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And I'm like, that's just not possible.
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I know there are people out there who say, well, no,
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but that's why we're in business, and blah bla blah blah.
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That's what I understand that.
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But you've got to look at the realities of the situation.
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And it's just like, if you are like a stockholder.
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Let's take it down to the individual level. If you're
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a stockholder and you hold stock in whether it's a
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you know, a mass.
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Conglomeration of stocks or whatever, you kind of look at
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the law. You look at it in.
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The long game, and you go, am I going to
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earn money over the next five years? Because if you
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sweat every day going up and down, you're just not
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being realistic number one, and you're gonna drive yourself crazy.
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Is it important to track, Yes, it's absolutely important to track.
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If it's a continuing trend that goes on for you know,
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four quarters in a row that's consistently down that's probably
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an issue, that's probably something you want to adjust and address.
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But it all comes down to the stockholders. They got
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to keep the stockholders happy. And what better way to
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keep the stockholders happy than when the news is not
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particularly good to cover it with New Villain's Land, New
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cars Land. This is changing, this is changing, this is changing.
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So again I agree with you, Philip. I think this
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is just all pretty kind of normal, and I don't
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think it's anything that should be anybody should be particularly
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stressed about.
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I think it's also important to take it in the context,
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you know, like you said, but also expand that to
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understand the context of this performance within the tourism sector.
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And we've been talking about that for a long time
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about how all of this is expected, and I think
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within the tourism sector they're doing really well. It's it's
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similar to if you look at the US economy as
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compared to the other G seven stuff. You know, it's
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the same problem people. I think a lot of people
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don't feel like it's good because of the pockets, and
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you know, because there are definitely some people in America
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that are benefiting much more than others. But like you, so,
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I think it's a very similar issue a little bit
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where people are thinking it's not good, but really, you know,
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it's I think the best performance of anyone in the
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tourism sector. So like it's I think it's still great.
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It's caused for good news and we can see the
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sector as a whole is recovering still, like we said,
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normalizing and back on track. You know, there's no warning,
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so sector as a whole, it's like no one is
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looking to jump out of the tourism sector entirely, so.
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Right, and you know, it kind of goes it kind
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of goes back to one of my favorite phrases from
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one of my previous mentors. Nothing is ever as good
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or as bad as we want to make it out
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to be. Because things are fine is not sexy for
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the media. It either has to be wonderful increase or
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horrible decrease. And there is no you know, I'm I'm
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actually happy living in a pleasant world of things are
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okay yep, But that doesn't get news, which is probably,
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honestly another reason why this kind of got i won't
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say buried, but.
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Eclipsed perhaps by DW three.
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Yep, yeah, because much more exciting.
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Yeah, well, speaking of things that are equally uninciting maybe
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I don't know, equally non exciting or normal. Six Flags
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and Cedar Fair reported also their their last earnings, so
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they're going to start in the future just reporting from
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the new company. But this was kind of the last
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one that we got of both companies, and essentially it's
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showing that six that Cedar Fair was doing well, but
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six Flags was not doing well, but not by much.
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So attendance was up seventeen percent year over year for
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the Legacy six Cedar Fair parks and down two percent
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at the Legacy six Flags parks, so it was up
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at Zedar Fair and down at six Flags. The difference
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in the number of operating days for each chain during
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the quarter when compared with previous year I counted for
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some of that discrepancy because the Six Flags stuff is
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in areas where some of the weather caused closings or whatnot.
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So keeping with that, revenue was up fourteen percent at
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Legacy six Fair to five hundred and seventy two million
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when it dropped, while it dropped one percent to four
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hundred and thirty eight million at Legacy six Flags. Both
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sides reported that the adjusted modified EBITA margin around thirty
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six percent, which is great. I still again, I think
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that's still great. In a statement, the Robert Zimman said,
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I'm extremely pleased with the second quarter performance of the
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Legacy Cedar Fair portfolio, while Purdue which Pursue which produced
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record levels of attendance and net revenues and generated a
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five hundred and seventy basis point lift in Legacy seat
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Fair adjustity even a margin in the quarter. While weather
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conditions have negatively impacted demand trends in July, we are
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confident that the combined portfolio is well positioned to deliver
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a strong full year performance in twenty twenty two. Since
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completing the merger on July first, we have quickly implemented
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initial integration plans to start to realize the meaningful synergy
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and growth opportunities now available to us. In the near term,
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we are focused on advancing our strategic initiatives and installing
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our core operating principles across our portfolio to tap into
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the tremendous potential we believe exists in the combination of
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these two iconic portfolios of assets.
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Wow, that's really good pr speak. That's that's very nice.
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Yeah, But the truth of the matter is I mean,
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it could in my opinion, you know me, I like
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to sum things up because I'm not that right, So