Television

Q2-16: Disney income up 10 percent aided by ESPN performance, studio entertainment

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/05/11/Disney_0_0.jpg?itok=S8qyTS4Z

BENGALURU: The Walt Disney Company Inc (Disney) reported 9.8 percent year-over-year (y-o-y) increase in operating income for the quarter ended 2 April 2016 (Q2-16, current quarter) as compared to the corresponding year ago quarter. Operating income in the current quarter was $3,822 million as compared to $3,482 million in Q2-15 (quarter ended 28 March 2015).

The company saw an increase of $340 million in operating income in its current quarter vis-à-vis the corresponding prior year quarter. Its Media Networks segment reported operating income of $198 million, while its Studio Entertainment segment reported operating income of $115 million.

Disney’s Media Networks segment’s sub-segment Cable Networks of which ESPN is a part saw 12.3 percent y-o-y increase in operating income. The increase at ESPN was partially offset by lower equity income from A&E Television Networks says Disney.

Disney reported 4.1 percent y-o-y growth in revenue in Q2-16 at $12,969 million as compared to $12,461 million in the corresponding prior year quarter. Growth in revenue of $508 million was contributed to by $168 million and $377 million growth by Disney’s ‘Parks & Resorts’ and ‘Studio Entertainment’ segments respectively.

Company speak

“We’re very pleased with our overall results in Q2, which marks our 11th consecutive quarter of double-digit growth in adjusted EPS,” said Disney chairman and CEO Robert A. Iger. “Our Studio’s unprecedented winning streak at the box office underscores the incredible appeal of our branded content, which we continue to leverage across the entire company to drive significant value. Looking forward, we are thrilled with the Studio’s slate and tremendously excited about the June 16th grand opening of the spectacular Shanghai Disney Resort.”

Segment numbers excerpts

Media Networks

Media Networks revenue in Q2-16 was relatively flat y-o-y (declined 0.3 percent) at $5,793 million as compared to $5,810 million in Q2-15. The  segment’s operating income increased 9.4 percent y-o-y to $2,299 million in the current quarter from $2,101 million during the corresponding prior year quarter.

Disney Media Networks segment has two sub-segments – Cable Networking and Broadcasting.

Cable Networks revenue for the quarter decreased 1.9 percent y-o-y to $3,955 billion from $4,030 million in Q2-15. Operating income in Q2-16 increased 12.3 percent y-o-y to $2,021 million from $1,799 million due to an increase at ESPN, partially offset by lower equity income from A&E. 

The increase at ESPN was due to the benefit of lower programming costs and higher affiliate revenues, partially offset by a decrease in advertising revenue.

Lower equity income from A&E was due to a decrease in advertising revenue, higher programming costs and a negative impact from the conversion of the H2 channel to Viceland as Viceland is in a start-up phase says Disney.

Broadcasting revenue for the quarter increased 3.3 percent to $1,838 million from $1,780 million. Operating income of the sub-segment decreased 7.9 percent y-o-y to $278 million from $302 million due to lower operating income from program sales and higher programming and marketing costs, partially offset by advertising and affiliate revenue growth. Lower operating income from program sales was due to a significant SVOD sale in the prior-year quarter and a higher cost mix of programs sold in the current quarter. 

The increase in programming costs was due to a higher average cost of new scripted programming and increased program cost write-offs. The increase in network advertising revenue was due to higher rates, partially offset by lower ratings. Affiliate revenue growth was primarily due to contractual rate increases.

Parks and Resorts

Parks and Resorts revenue for the current quarter increased 4.5 percent y-oy- to $3,928 million from $3.760 million. Segment operating income in Q2-16 increased 10.2 percent y-o-y to $624 million from $566 million. 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 revenue for the current quarter increased 22.4 percent to $2,062 million from $1,685 million in Q2-15. Segment operating income increased 26.9 percent to $542 million from $427 million. 

Disney says that higher operating income was due to an increase in theatrical distribution results and growth in TV/SVOD distribution, partially offset by the impact of foreign currency translation due to the strengthening of the US dollar against major currencies, decreased home entertainment results and higher film cost impairments.

The increase in theatrical distribution results was due to the strong performance of Star Wars: The Force Awakens and Zootopia in the current quarter compared to the continuing performance in the prior year quarter of Big Hero 6 and Into the Woods, both of which were released domestically in the first quarter of the prior year. Higher TV/SVOD distribution results were driven by international growth. The decrease in home entertainment results was primarily due to lower unit sales reflecting the performance of Big Hero 6, Frozen and Marvel’s Guardians of the Galaxy in the prior-year quarter compared to The Good Dinosaur, Inside Out and Marvel’s Ant-Man in the current quarter. The decrease from lower unit sales was partially offset by the benefit from Star Wars Classic titles that are distributed by a third party.

Consumer Products & Interactive Media

Consumer Products & Interactive Media revenue for the current quarter decreased 1.7 percent to $1,186 million from $1,286 million. Segment operating income decreased 8 percent to $357 million from $388 million. 

Lower operating income was primarily due to the impact of foreign currency translation due to the strengthening of the U.S. dollar against major currencies, lower operating margins and comparable store sales at Disney’s retail business and lower results for Infinity. 

These decreases were partially offset by higher licensing revenues. Increased licensing revenues were driven by higher revenue from Star Wars  merchandise, partially offset by an adverse impact from the timing of minimum guarantee shortfall recognition and a decrease in revenue from merchandise based on Frozen.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/sm.jpg?itok=gUhILkq8
Times Now appoints Sujeet Mishra as marketing head

Times Network, part of India’s media conglomerate, The Times Group today announced the appointment of Sujeet Mishra as head of marketing, Times Now.

Television TV Channels People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/sony-bbc_1.jpg?itok=mQuiQxIO
Experience space with BBC's new VR experience

The BBC is giving you a chance fly. Home - A VR Spacewalk is an interactive virtual reality (VR) experience launched today for the HTC Vive and the Oculus Rift, and is available to download for free via the Steam Store and the Oculus Store.

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/bbc_0.jpg?itok=jTEnctw5
Sony BBC Earth presents the Best of 2017

Sony BBC Earth revisits some of its most popular episodes of the best shows in a special programming line-up titled Best of 2017 starting 18 December 2017, every night at 7 pm and 11 pm.

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/shemaroo.jpg?itok=JLK5kQw2
Increased revenue from traditional media boosts Shemaroo numbers

Integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported 18.3 percent higher year-on-year (y-o-y) consolidated total revenue for the quarter ended 30 September 2017 (Q2 FY 2017-18, the quarter under review) stood at Rs 1,345.7 million as compared with Rs 1,138.6 million in...

Television Production House Film Production
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/mur.jpg?itok=Hql64_2L
21st CF spins-off into new live news & sports co Fox

MUMBAI: After the blockbuster acquisition of 21st Century Fox by The Walt Disney Company, the former has announced that it will spinoff into a new brand Fox’ that will seek to replicate its own success in the newly focussed verticals of live news and sports brands. Using fiscal 2017 as a base, the...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/15/uday_0.jpg?itok=t8VAurqw
With Star India, Disney emerges as India's largest M&E firm

MUMBAI: Unlike the US, where the merger of The Walt Disney Co and 21st Century Fox’s entertainment assets is between two near equals, the scenario in India is totally different. 21st Century Fox’s India venture Star India is a $1.7 billion dollar media and entertainment behemoth while Disney India...

Television TV Channels People
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/bob.jpg?itok=zPgBgsME
Disney to buy 21st Century Fox assets for $52.4 billion

The Walt Disney Co has set up a $52.4 billion, all-stock deal to acquire 20th Century Fox and other entertainment and sports assets from Rupert Murdoch’s empire.

Television TV Channels Movie Channels
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/mania.jpg?itok=Jb64uy53
MOVIES NOW brings #StopDreamingAndStartWinning with 100 Mania Season 5 for its viewers

Movies Now, India’s english movie channel, rings in the festive season with its property ‘100 Mania’, beginning Friday, 15 December at 9pm. In its 5th season, the channel has curated a line-up of some of the biggest Hollywood blockbusters like Furious 7, Jurassic World, Disney’s The Jungle Book,...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2017/12/14/spn.jpg?itok=yceBilrp
SPN India to telecast Real Madrid vs Barcelona at 4:30 pm

Less than two weeks to Christmas and Sony Pictures Sports Network (SPSN) launches its “Christmas Comes Early” campaign as a build-up to the biggest football clash of the year, El Clasico.

Television TV Channels Sports

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories