Yahoo Finance Disney's parks are the 'Rock of Gibraltar' for the brand
It may be a small world, but Disney (DIS) is bringing in gigantic revenue.
The company surpassed Wall Street’s expectations for the second quarter. Revenue came in at $14.92 billion, with analysts expecting it to come in at $14.36 billion dollars.
While appearing on Yahoo Finance’s “The First Trade,” Trip Miller of Gullane Capital Partners and a Disney shareholder, said there’s even more opportunity for the company.
“One of the things we’re most excited to see is the continued strength of its parks business – which we view as the Rock of Gibraltar of the Disney brand,” Miller said. That rock is a sturdy foundation for the Mouse House, which continues to grow at a steady pace.
Disney saw a 5% revenue jump in its parks, experiences and products in Q2. At the same time, guests still bought tickets at a higher price and spent more money at the park.
Disney CEO Bob Iger said the parks will continue being a strong source of revenue. “We've got a very busy year ahead, including a number of major developments in our parks and resorts,” he said during an earnings call.
He added, “we're looking forward to the grand opening of Star Wars: Galaxy's Edge in our Disneyland Resort on May 31. The excitement around this new land is unbelievable and will only grow once people have a chance to experience it for themselves.”
While Disney’s parks continue to be a big source of revenue, the streaming capabilities of the company may open a number of opportunities.
“We’re obviously, going forward, very interested to see how things go with Disney+ and ESPN+ and potentially Hulu as they prepare to roll out this triple-play platform direct to consumers.”
He even thinks Disney is stacked against streaming giant Netflix (NFLX).
“Everyone wants to talk about Netflix comparably, but I think Disney’s advantage is that they have legacy children’s content, sports, and having that content is valuable,” Miller said. “Hulu is a question. We’ll see what happens, but the service is building, and it’s a wildcard in this with people not knowing how it will turn out.”
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