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I jotted down some notes as I listened to the conference call (listen to it at http://disney.go.com/corporate/investors/events/earnings_calls.html). Most of the information was also in the press release (here http://disney.go.com/corporate/investors/financials/earnings.html), but here's some stuff I thought was interesting:

1 - The Disney Channel increased its subscriptions by 13M.

2 - WDW attendance dropped 20% year-over-year (no surprise there), but attendance improved as the quarter was closing and bookings are beginning to come back to normal levels. However, visibility has been reduced because most of the bookings coming in are for spring. Usually summer bookings are coming in now.

3 - The increased acceptance of DVD technology is helping movie sales.

4 - Comps were up 20%! in Japan's Disney stores. They were also up in the single digits in the US.

5 - Management called the turn around plan at ABC "short term". In other words, it should only take months, not years to "fix" the network. The ratings race between the top four networks is very close (within tenths of percentage points), which means it will take just one or two big shows to put them back on top.

6 - Michael Eisner made a huge point at the beginning of his presentation that they will not award new consulting deals to their auditors and they will review any existing consulting agreements. Of course, it does help that PriceWaterhouseCoopers (the auditor) is also planning to split off it's consulting business.

7 - Mr. Eisner also made it clear that Q1 performance was unacceptable, but he was happy with the quarter from the standpoint that he believes the company's profits will spring back with the economy, which he expects to rebound by the second half of the year.

8 - It was stated the the theme parks have never been more efficient, and that many of the cuts made recently are permanent so profitability will increase as traffic comes back to normal. Management also made a point that the quality of the parks has not decreased - I'm not sure if I believe that based on the latest content of this message board.

9 - Eisner also stated that Disney has gained market share in the theme parks and expects to maintain that share as the economy rebounds.

10 - One of the analysts asked about the Disney/Pixar relationship. Eisner said that they have a contract to produce 3 more movies and 2 more sequels. He also said they have a good relationship and sounded like he expected a renewed contract when this one expires.

Anyway, those are the highlights that stood out to me. I was generally happy with the results and I am anxious to see the cash flow statement when they file the 10Q. I wish they would add it to the earnings release.

Fool On!
Jim
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