Disney: Will investments into parks, experiences pay off?
11/09/2023 22:32
Disney (DIS) recently announced an expansion plan of around $60 billion in theme parks and experiences over the next 10 years. The company recently increased its annual cost cutting goal to $7.5 billion which includes a $4.5 billion annualized cut to content spending. Many investors now eye the performance of the parks to see if Disney can capitalize on their recent fourth-quarter earnings beat. Doug Creutz, TD Cowen Managing Director TMT — Media & Entertainment, joins Yahoo Finance to discuss the performance of the parks and the recent expansion plan announcement. Creutz expounds on Disney's recent content strategy, stating the media company has gone for "quantity over quality, and it didn't work out as well as they would have liked." "The more you need to invest, the harder it is for that marginal dollars to return. It doesn't mean they can't do it, but it will be a challenge," Creutz says. "Even if they do do it, we did annals that suggested their planning could drive high single-signature EBITA growth in the segment. I don't know that that's so good that it changes anyone's view on the parks business overall." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Disney (DIS) recently announced an expansion plan of around $60 billion in theme parks and experiences over the next 10 years. The company recently increased its annual cost cutting goal to $7.5 billion which includes a $4.5 billion annualized cut to content spending. Many investors now eye the performance of the parks to see if Disney can capitalize on their recent fourth-quarter earnings beat.
Doug Creutz, TD Cowen Managing Director TMT — Media & Entertainment, joins Yahoo Finance to discuss the performance of the parks and the recent expansion plan announcement.
Creutz expounds on Disney's recent content strategy, stating the media company has gone for "quantity over quality, and it didn't work out as well as they would have liked."
"The more you need to invest, the harder it is for that marginal dollars to return. It doesn't mean they can't do it, but it will be a challenge," Creutz says. "Even if they do do it, we did annals that suggested their planning could drive high single-signature EBITA growth in the segment. I don't know that that's so good that it changes anyone's view on the parks business overall."
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.