Q3-2015: Disney revenue up 5.1%, income up 10.6%

BENGALURU: The Walt Disney Company Inc reported 5.1 per cent revenue increase in Q3-2015 (quarter ended 27 June, 2015) to $13,101 million as compared to the $12,466 million in Q3-2014 (quarter ended 28 June, 2014). Net income during the current quarter improved 10.6 per cent to $2483 million from $2245 million reported for the corresponding year ago quarter.


Of the five segments that add to Disney’s numbers, four – Media Networks, Parks & Resorts, Studio Entertainment and Consumer Products showed improvement in revenue and income, while its Interactive segments showed decline in revenues and income in the current quarter as compared to the corresponding year ago quarter.


"We’re very pleased with our performance in the third quarter, with record net income and diluted earnings per share of $1.45, up 13 per cent from the prior year. The strong results across our many diverse lines of business demonstrate the power of our unparalleled brands, franchises and creative content,” said Disney chairman and chief executive officer Robert A Iger.


Segment Results

Media Networks 

Media Networks revenues for the current quarter improved five per cent to $5768 million from $5511 million reported for Q3-2014. Operating Income from this segment increased four percent to $2378 million in Q3-2015 from $2296 million in Q3-2014. 


Two sub-segments – Cable Networks, and Broadcasting contribute to this segment. 


Cable Networks


Cable Networks reported a five per cent growth in revenue to $4140 million in Q3-2015 from $3942 million in Q3-2014. The sub-segment reported a seven per cent increase in Operating Income to $2078 million in Q3-2015 as compared to the $1942 million in Q3-2014. The company says the increases at the domestic Disney Channels and ABC Family were due to higher program sales and increased affiliate revenue, driven by contractual rate increases. Program sales growth reflected increased subscription video on demand (SVOD) distribution revenues in the current quarter.


Operating results at ESPN were driven by growth in affiliate revenue, partially offset by lower advertising revenue. The increase in affiliate revenues was due to contractual rate increases and an increase in subscribers. The increase in subscribers was due to the new SEC Network launched in August 2014, partially offset by a decline in subscribers at certain of our networks.


Lower advertising revenues reflected lower ratings and rates, partially offset by more units sold driven by NBA playoff games. Lower rates reflected the benefit of World Cup soccer in the prior-year quarter. ESPN programming and production costs were relatively flat in the quarter as the addition of the SEC Network and higher rights costs for NBA programming were essentially offset by the absence of rights costs for NASCAR and World Cup soccer.



Broadcasting reported four per cent hike in revenue in the current quarter to $1628 million from $1569 million, but reported a 15 per cent decline in operating income to $300 million from $354 million in the corresponding quarter of last year due driven by higher programming costs, lower advertising revenue and higher labour related costs, partially offset by growth in affiliate fees and higher program sales revenue from SVOD distribution. Higher programming costs were driven by increases in the average cost of primetime programming and pilot costs in the current quarter.

Lower advertising revenues reflected decreased news and daytime ratings, partially offset by higher rates. Affiliate fee growth was due to new contractual provisions and contractual rate increases.


Parks and Resorts


Parks and Resorts reported four per cent growth in revenue to $4131 million from $3980 million in the corresponding year ago quarter and a nine per cent increase in Q3-2015 operating income to $922 million from $848 million in Q3-2014. Operating income growth for the quarter was due to an increase at Disney’s domestic operations, partially offset by a decrease at its international operations. 


Studio Entertainment


Studio Entertainment reported 13 per cent increase in revenue to $2040 million in Q3-2015 as compared to the $1807 million in Q3-2014, and segment operating income increased 15 per cent to $472 million from $411 million in Q3-2014.


Disney says that higher operating income was due to an increase in theatrical distribution, growth at international television distribution and a higher revenue share with the Consumer Products segment. These increases were partially offset by a decrease in home entertainment and higher film cost impairments.


The increase in theatrical distribution reflected the strong performance of Marvel's Avengers: Age of Ultron in the current quarter compared to Marvel's Captain America: The Winter Soldierin the prior-year quarter. Theatrical results in the current quarter also benefited from the continuing performance of Cinderella, which was released in the second quarter of the current year. These increases were partially offset by the strong international performance of Frozen in the prior-year quarter and the results of Tomorrowland in the current quarter. The growth in international television distribution included sales of Star Wars titles, while the increased Consumer Products revenue share was primarily due to the performance of Frozenmerchandise. The decrease at home entertainment reflected lower unit sales due to the performance of Frozen in the prior-year quarter compared to Big Hero 6 in the current quarter.


Consumer Products


Consumer Products Q3-2015 revenue increased six per cent to $952 million from $902 million in Q3-2014 and operating income improved 27 per cent to $348 million from $273 million in Q3-2014.


Higher operating income was due to an increase in merchandise licensing revenues and lower third-party royalty expense. Merchandise Licensing revenue growth reflected the performance of merchandise based on Frozen, The Avengers and Star Wars, partially offset by lower revenues from Spider-Man merchandise.




Revenue from this segment fell 22 per cent to $208 million in Q3-2015 from $266 million in Q2-2014, but segment operating income was nil as compared to the $29 million in Q3-2014. The segment just managed to breakeven.


Lower operating income was primarily due to lower results from Disney Infinity and decreased sales of console game catalogue titles, partially offset by the continued success of Tsum Tsum. The decrease from Disney Infinity was due to decreased unit sales and lower average net effective pricing.


Latest Reads
Maha Cartoon targets 65 per cent rural HSM via DD FreeDish, 2000 LCOs

Who can forget the Charlie Chaplin show which entertained the world audience of all ages. Maha Cartoon, the first free-to-air (FTA) Hindi cartoon channel targeted at the Hindi-speaking markets (HSM), will be launched on India's largest DTH platform DD FreeDish on 1 November. The new Maha Cartoon...

Television TV Channels Kids
Vikram Chandra steps down; KVL Narayan Rao is new NDTV group CEO

The rumours that were making rounds of Vikram Chandra quitting NDTV have now been put to rest.

Television TV Channels People
Naagin helps Colors capture top position this week: BARC

Backed by Naagin Season 2, Colors was almost close to Star Plus to get the number one position, but, this week, Colors went few steps ahead and grabbed the leadership position and replaced Star Plus in week 42. Even in Urban GECs market, Colors toppled Star and took over the number one position.

Television TV Channels Viewership
SPN India to broadcast Barclays ATP World Tour finals

Sony Pictures Networks India (SPN) will exclusively broadcast the upcoming ATP events in the month of November. The ATP 1000 Paris Masters will be aired live on Sony ESPN channels and will be streamed live on SonyLIV app and website. The ATP 1000 Paris Masters in Paris will begin on 31 October.

Television TV Channels Sports
Hunt for Zee Business head continues

MUMBAI: Zee Business, an arm of Zee Media Corporation, has seen several transitions in its management this year. The channel was initially headed by Amish Devgan, who decided to move away after serving for 14 years. It was then led by Zee Media Corporation’s then CEO for content Samir Ahluwalia,who...

Television TV Channels People
'King' content will take over monopolistic media entities, says Arnab Goswami

NEW DELHI: The future of news lies in breaking away from the interdependence of politicians and the media on each other.

Television TV Channels News Broadcasting
Animated 'Ramayana' a global Diwali gift on web, mobile

NEW DELHI: Thirty episodes of the animated series Ramayana will be available around the world on the nexGTv web and mobile platforms during Diwali.

Television TV Shows Animation
Sports Minister lauds b'casters, other stakeholders in promoting sports

NEW DELHI: India’s Sports Minister Vijay Goel said on Wednesday that digital media broadcasting will play a critical role in bringing about change in sports broadcasting in India but broadcasters must also focus on how sports as a product is delivered to audiences in rural areas so as to popularise...

Television TV Channels Sports
Know your karma on IBN7 with 'Karm Path'

In an attempt to give its viewers a refreshing start of the day, IBN7 is launching a new show titled Karm Path. Starting 27 October, the show will predict what the day holds. The show is a differentiator in its own genre as it connotes the supremacy of deeds over destiny.

Television TV Channels News Broadcasting

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories