Shanghai Disney's first fiscal year profit, exceeding the company's expectations!

In the early morning of November 10th, Beijing time, Walt Disney Company announced the fourth quarter and full year financial report for the fiscal year ending September 30, 2017. The Shanghai Disney Resort was praised by the name.
According to the Walt Disney Company's 2017 financial report, the Walt Disney Company's revenue for the fiscal quarter was 12.779 billion US dollars, and diluted earnings per share (EPS) increased 3% to 1.13 US dollars. In the current fiscal year, the company's annual revenue reached 55.137 billion US dollars, and net profit was 8.98 billion US dollars.
It is worth noting that Shanghai Disney Resorts earned operating income in the first full operating fiscal year, exceeding the company's expectation of a breakeven in its first fiscal year.
According to industry analysis, this benefited from the huge passenger flow in the first year of operation. The economic benefits of Shanghai Disney also boosted the overall Shanghai tourism and surrounding markets. The evaluation of the driving effect of the Shanghai Disneyland on economic and social development showed that it was affected by the opening of the Disney project. In 2016, the proportion of the value-added of tourism industry in Shanghai increased, and the added value of tourism reached 168.97 billion yuan. The First Financial reporter learned that next, the expansion of Shanghai Disney will continue.
上海迪士尼1
Shanghai Disney's performance exceeded expectations
According to the financial report, in the Walt Disney Park and resort area, the fourth quarter revenue increased by 6% to 4.7 billion US dollars, and the annual revenue increased by 8% to 18.514 billion US dollars. International market growth has benefited from the outstanding performance of Disneyland Paris and Shanghai Disney Resort.
Robert Eiger, Chairman and CEO of Walt Disney Company, said: "Our brand and character series, as well as our ability to operate IP throughout the company, make us more adaptable to the changing media environment than any other entertainment company. We look forward to In the new year, we will launch the first direct-to-consumer streaming service, and we will continue to invest in the future and take some risk of wisdom to create shareholder value."
As the "excellent performance" mentioned in the earnings report, Shanghai Disney's performance is a bright spot. In the conference call, Chief Financial Officer Christine McCarthy said: "Our international operations continued to improve under the growth of Disneyland Paris and Shanghai Disney Resort. Shanghai Disney's operating income growth comes from its increase. Passenger traffic, and a small portion from its lower marketing costs compared to the fourth quarter of last year. I am happy to tell you that Shanghai Disney Resort has earned operating income in its first full operating fiscal year, easily surpassing us. Expected to break even in its first fiscal year."
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   Three main reasons for promoting performance  
The first financial reporter learned in the interview that Shanghai Disney's first fiscal year was profitable, mainly due to huge passenger flow, localization and the use of new technologies.
The “Evaluation of the Driving Effects of the Shanghai Disney Project on Economic and Social Development” shows that the economic and social benefits of the Shanghai Disney project have met expectations of all parties. In the first year of Disneyland opening (June 16, 2016 to June 15, 2017), there were more than 11 million visitors.
“In the past year, Shanghai Disneyland has become the fastest growing theme park in China and the world. There has never been a theme park in the world, like Shanghai Disneyland is growing so fast. Although it did encounter some unexpected results in the first year of operation. Outside the situation, but we strive to cope, learn quickly, understand the market demand and adjust accordingly, and achieve orderly operation in a short period of time." Philippe Gas, general manager of Shanghai Disney Resort, accepted the interview with the first financial reporter Localization is one of the factors that promote the growth of Shanghai Disney's performance. It has made great efforts in various performances, Chinese scripts, the implantation of Chinese stories and elements, and traditional holiday marketing. He also found that Chinese tourists like to take pictures and send friends, so they also explore the sharing of goods in the park on social media.  
In addition, high technology is also a highlight of Shanghai Disney. “There are a lot of immersive experiences in the park. The experience of 'Pirates of the Caribbean' is closer to the story of the movie. At the same time, the most advanced technology – 3D and amusement equipment system can be rotated or retracted freely. '翱翔·Flying over the horizon' uses a high number The photographic system and image system of science and technology film the natural scenery of the world.” Guo Weicheng told the First Financial Reporter that European and American tourists actually prefer traditional consumption projects, while Chinese tourists prefer high-tech amusement projects that follow the trend.
Shanghai Disney 3
   Expansion continues
Robert Eiger also said in a conference call that he will produce original series based on Star Wars, Marvel, Pixar Monster Power Company and Disney Song and Dance Youth Series, as well as exclusive videos and short videos for the platform.  
It is reported that "Star Wars: The Last Jedi Knight" director Ryan Johnson will create a new series of Star Wars trilogy, the first of which will be self-directed by him and produced by long-time partner Ram Bergman. The series will not continue the story of Skywalker, but introduce new characters from the “unexplored” of the galaxy.  
In addition, the direct-to-consumer Disney streaming business will be the focus of the company's business. The ESPN streaming service will be launched in the spring of 2018, and the Disney streaming service will be launched in 2019, including Disney, Pixar, Marvel and Star Wars.  
Just recently, it was reported that Disney plans to acquire most of the assets of 21st Century Fox, and the representatives of the two sides started negotiations. However, the parties have suspended the negotiations after the agreement has not been reached.
It is worth noting that in the park business, the construction of the “Toy Story” theme park in Shanghai and Orlando is coming to an end, and both parks will be opened before next summer.
“Once the future expansion of Shanghai Disneyland will be opened, we can see more tourists and extend consumer income. The peak period of a theme park is usually when the project is just opened, the value curve of the park and the value of the park. Passenger flow will decline, but if it can be kept updated and new projects are being expanded, it will be able to repeatedly increase the number of visitors and generate new revenue. Disneyland has strong strength in IP construction, innovation and expansion. Consulting chief analyst Wei Changren believes.  
The “Evaluation of the Driving Effects of the Shanghai Disney Project on Economic and Social Development” shows that due to the opening of the Disney project, the proportion of the value-added of tourism industry in Shanghai increased in 2016, and the added value of tourism reached 168.97 billion yuan, accounting for 6.2% of GDP. The added value of tourism increased by 6.9% year-on-year, which was higher than the average growth rate of 2.1% in 2011-2015 by 4.8 percentage points. The project has a significant impact on the total number of tourist receptions and total tourism revenue in Shanghai. From the reception number, in 2016, Shanghai received a total of 305 million tourists, a year-on-year increase of 7.42%, higher than the average growth rate of 4.38 percentage points in 2011-2015. In 2016, Shanghai's total tourism revenue was 382 billion yuan, a year-on-year increase of 9%, higher than the average growth rate of 4.5 percentage points in 2011-2015. Shanghai Disney also boosted the number of visitors to Shanghai's famous attractions. For example, the number of Oriental Pearl receptions increased significantly to 4,658,600, an increase of 675,900 from 2015, an increase of 16.9%.

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