Excellent read. Thanks for highlighting how an aversion to debt helped them through a tough period. It tends to be under-appreciated in traditional corporate finance that looks to mathematically optimize the capital structure.
It is an unusual company, especially in an Indian context. No related party transactions, no obfuscation in the books. However, if I were to play Devil's advocate: The correct amount of debt is not always zero. There's no way they could've foreseen the pandemic. Is it a responsible use of shareholder funds to carry such vast sums in money market funds? They also forego the expense write off of interest payments. All this combined leads to a dismal RoE.
Liked it. Can you recall any India amusement park created character? Do you think it is a big opportunity considering the terrible purchasing power we enjoy(?). I am not bullish on amusement park fueled demand for anything mainstream though I am most certainly wrong.
There are 4 Disneylands outside the US: Paris, Tokyo, Hong Kong and Shanghai. Shanghai only opened in 2016. I do believe we'll have one in India eventually. Disney parks also drive a lot of domestic and international tourism, and tourists tend to be less price sensitive. So the market size may be larger than it appears.
Excellent read. Thanks for highlighting how an aversion to debt helped them through a tough period. It tends to be under-appreciated in traditional corporate finance that looks to mathematically optimize the capital structure.
It is an unusual company, especially in an Indian context. No related party transactions, no obfuscation in the books. However, if I were to play Devil's advocate: The correct amount of debt is not always zero. There's no way they could've foreseen the pandemic. Is it a responsible use of shareholder funds to carry such vast sums in money market funds? They also forego the expense write off of interest payments. All this combined leads to a dismal RoE.
Liked it. Can you recall any India amusement park created character? Do you think it is a big opportunity considering the terrible purchasing power we enjoy(?). I am not bullish on amusement park fueled demand for anything mainstream though I am most certainly wrong.
Appu from Appu Ghar! https://en.wikipedia.org/wiki/Appu_Ghar
There are 4 Disneylands outside the US: Paris, Tokyo, Hong Kong and Shanghai. Shanghai only opened in 2016. I do believe we'll have one in India eventually. Disney parks also drive a lot of domestic and international tourism, and tourists tend to be less price sensitive. So the market size may be larger than it appears.
I expect this list to grow exponentially: https://en.wikipedia.org/wiki/List_of_amusement_rides_based_on_video_games_franchises and there's no reason why the inverse can't happen either. If correctly executed, the immersion offered by a theme park is incomparable.
Appu ghar doesn’t immediately come to mind though I would pay anything to watch App the barbarian movie.