Television

FY-2015: Disney revenue up 7.5%; net income up 11.7%

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2015/11/06/Disney_logo.jpg?itok=didKVfbI

BENGALURU: The Walt Disney Company Inc reported 7.5 per cent YoY increase in consolidated revenue at $52,465 million for the year ended 3 October, 2015 (FY-2015, current year) as compared to the $48.813 million reported for the year ended 27 September, 2014 (FY-2014, previous year). Net income in the current year increased 11.7 per cent YoY to $8.382 million from $7,501 million.

 

“We had a strong quarter, with adjusted EPS up 35 per cent, completing our fifth consecutive year of record performance. In Fiscal 2015 we delivered the highest revenue, net income and adjusted EPS in the Company’s history, reflecting the power of our great brands and franchises, the quality of our creative content, and our relentless innovation to maximize value from emerging technologies,” said Disney chairman and CEO Robert A Iger.

 

For the quarter ended 3 October, 2015 (Q4-2015, current quarter), consolidated revenue increased 9.1 per cent YoY to $13.512 million as compared to $12,389 million in the quarter ended 27 September, 2014 (Q4-2014). Net Income in Q4-2015 increased 7.3 per cent to $1,609 million as compared to $1,499 million.

 

Segment Results

 

Four of the five Disney’s segments – Media Works, Parks and Resorts, Studio Entertainment and Consumer Products reported growth in revenue in FY-2015 and Q4-2015 as compared to FY-2014 and Q4-2014 respectively, while the fifth segment – Interactive – reported decline in revenues. However, all the five segments reported growth in segment operating income in the current year and quarter as compared to the previous year and year ago quarter respectively.

 

Media Networks

 

Media Networks revenue in FY-2015 increased 10 per cent to $23,264 million from $21,152 million in the previous year. Segment Operating income increased 6.4 per cent in the current year to $7,793 million as compared to $7,321 million in FY-2014.

 

The segments revenue in the current quarter increased 11.7 per cent YoY to $5,286 million from $5,217 million. Operating income for the segment increased 26.6 per cent YoY to $1,819 million from $1,437 million.

 

Disney says that Operating income growth at Media Networks was driven by higher affiliate fees, increased advertising revenue at ESPN and the ABC Television Network and higher operating income from program sales. These increases were partially offset by an increase in programming and production costs at ESPN and, to a lesser extent, the Disney Channels and the ABC Television Network.

 

Two sub-segments contribute to Disney’s Media Networks – Cable Networks and Broadcasting.

 

Cable Networks

 

Cable Networks revenue in FY-2015 increased 9.7 per cent to $16,581million from $15,110 million in the previous year. Segment Operating income increased 4.9 per cent in the current year to $6,787 million as compared to $6,467 million in FY-2014.

 

The sub-segments revenue in the current quarter increased 12.4 per cent YoY to $4,245 million from $3,776 million. Operating income for the sub- segment increased 29.8 per cent YoY to $1,655 million from $1,275 million.

 

For Q4-2014, Disney says that Operating income at Cable Networks increased due to an increase at ESPN and, to a lesser extent, A&E Television Networks (A&E) and the Disney Channels. The increase at ESPN reflected higher affiliate and advertising revenues, partially offset by an increase in programming costs. Affiliate revenue growth was driven by contractual rate increases and an increase in subscribers. The increase in subscribers was due to a full quarter of the SEC Network, which launched in August 2014, partially offset by a decline in subscribers at certain of Disney’s networks.

 

Growth in advertising revenue reflected higher units sold, partially offset by lower ratings. Higher programming costs reflected a full quarter for the SEC Network, additional rights for the US Open Tennis tournament and contractual rate increases for Major League Baseball and NFL rights, partially offset by the absence of rights costs for NASCAR.

 

Higher equity income from A&E was due to lower programming and marketing costs, partially offset by lower advertising and affiliate revenue. The increase at Disney Channels was driven by higher affiliate revenues, partially offset by higher programming costs. Affiliate revenue growth reflected contractual rate increases domestically and subscriber growth internationally. The programming cost increase was driven by higher costs for original programming, including more hours of new series in the current quarter.

 

Broadcasting

 

Cable Networks revenue in FY-2015 increased 10.6 per cent to $6,683 million from $6,042 million in the previous year. Segment Operating income increased 17.8 per cent in the current year to $1,006 million as compared to $854 million in FY-2014.

 

The sub-segments revenue in the current quarter increased 9.7 per cent YoY to $1,581 million from $1,441 million. Operating income for the sub-segment was flat YoY to $164 million from $163 million.

 

For Q4-2014, Disney says that growth in advertising and affiliate revenue was offset by higher programming costs, lower operating income from program sales, an equity loss from Hulu and higher marketing costs for the fall season launch. The increase in advertising revenue reflected higher units sold, including the benefit of the extra week of operations, and higher rates. Affiliate revenue growth was due to contractual rate increases and new contractual provisions. Higher programming costs reflected the impact of an additional week of operations. Lower operating income from program sales was driven by an increase in cost amortisation and lower sales. Program sales reflected decreases for My Wife and Kids and America’s Funniest Home Videos, partially offset by the sale of How to Get Away with Murder in the current quarter. The equity loss from Hulu was due to higher content and marketing costs.

 

Parks & Resorts

 

Parks and Resorts segment revenue in the current year increased seven per cent to $16,162 million as compared to the $15,099 in FY-2014. Segment Operating income increased 13.8 per cent in the current year to $3,301 million as compared to $2,663 million in FY-2014.

 

The segments revenue in the current quarter increased 10.1 per cent YoY to $4,361 million from $3,960 million. Operating income for the segment increased 7.4 per cent YoY to $738 million from $687 million.

 

Growth at Parks and Resorts was driven by Disney’s domestic operations due to higher average guest spending, attendance and occupancy, partially offset by increased costs driven by inflation and volumes. Results at Disney’s international parks and resorts operations reflected lower attendance and occupancy at Hong Kong Disneyland Resort and higher pre-opening expenses at Shanghai Disney Resort.

 

Studio Entertainment

 

Studio Entertainment segment revenue in the current year increased 1.2 per cent to $7,366 million as compared to the $7,278 in FY-2014. Segment Operating income increased 27.4 per cent in the current year to $1,973 million as compared to $1,549 million in FY-2014.

 

The segments revenue in the current quarter was flat (increased 0.3 per cent) YoY to $1,783 million from $1,778 million. Operating income for the segment more than doubled (2.09 times) YoY to $530 million from $254 million.

 

At Studio Entertainment, operating income growth was due to a higher revenue share with the Consumer Products segment reflecting the success of Frozen merchandise, an increase in television distribution revenue and higher domestic theatrical results. This growth was partially offset by a decline in home entertainment units sold reflecting the success of Frozen in the prior year.

 

For Q4-2015, Disney says that Operating income growth was due to increased TV/SVOD distribution results, lower film cost impairments, improved theatrical results and a higher revenue share with the Consumer Products segment. These increases were partially offset by lower home entertainment results.

 

The increase in TV/SVOD distribution was driven by a lower average production cost amortisation rate, the timing of title availabilities in international pay and domestic free television markets as well as SVOD revenue growth internationally. Lower production cost amortisation reflected a higher sales mix of catalogue titles in the current quarter.

 

Operating income growth in theatrical distribution was driven by the performance of Inside Out and Ant-Man in the current quarter compared to Guardians of the Galaxy, Maleficent and no Pixar title in the prior-year quarter. Theatrical distribution revenues were lower in the current quarter as the prior-year quarter also included Planes: Fire and Rescue and The Hundred-Foot Journey, whereas the current year included no Disney feature animation or DreamWorks titles in release. Increased revenue share was due to the performance of Frozen merchandise in the current quarter.

 

The decrease in home entertainment was due to lower net effective pricing and unit sales reflecting the prior-year quarter performance of Frozen internationally and Marvel’s Captain America: The Winter Soldier worldwide, partially offset by Marvel’s Avengers: Age of Ultron and Cinderella in the current quarter. These decreases were partially offset by lower per unit costs as well as decreased marketing spending in the current quarter.

 

Consumer Products

 

Consumer Products segment revenue in the current year increased 12.9 per cent to $4,499 million as compared to the $3,985 in FY-2014. Segment Operating income increased 29.2 per cent in the current year to $1,752 million as compared to $1,356 million in FY-2014.

 

The segments revenue in the current quarter increased 11.5 per cent YoY to $1,195 million from $1,072 million. Operating income for the segment increased 9.8 per cent YoY to $416 million from $379 million.

 

Consumer Products operating income growth was due to higher merchandise licensing revenue reflecting the strength of Frozen, Avengers and Star Wars Classic merchandise.

 

Interactive

 

Interactive segment revenue in the current year reduced 9.6 per cent to $1,174 million as compared to the $1,299 in FY-2014. Segment Operating income increased 13.8 per cent in the current year to $132 million as compared to $116 million in FY-2014.

 

The segments revenue in the current quarter reduced 4.1 per cent YoY to $347 million from $362 million. Operating income for the segment increased 72.2 per cent YoY to $31 million from $18 million.

 

Interactive growth was driven by the ongoing success of the Tsum Tsum mobile game and lower product development and marketing costs, primarily at Disney’s mobile businesses, partially offset by lower operating income from Disney Infinity console games.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/04/CINTAA.jpg?itok=Uh9zTn60
CINTAA meets Maharashtra governor to discuss rule restricting senior actors

MUMBAI: The Cine and TV Artistes’ Association (CINTAA) senior vice president and actor Manoj Joshi met with the governor of Maharashtra Bhagat Singh Koshyari today. They discussed the issue of senior actors, above the age of 65, not being allowed to shoot. The governor assured of necessary co-...

Television Production House Fiction
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/04/aaj-tak-bharatvarsh.jpg?itok=fAwNLjWY
Aaj Tak tops; TV9 Bharatvarsh is clear No 2 in BARC ratings wk 25

MUMBAI: Well, the battle to gain the top spot in the Hindi news television space continues. The numbers put out by Broadcast Audience Research Council (BARC) for week 25 of the current year for 15+ HSM show that Aaj Tak,  which has been a leader in the segment for the longest time registered 216,...

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/04/Optimystix%20Entertainment.jpg?itok=5RUvcFm7
Optimystix Entertainment finding creative ways to maintain social distancing on air

MUMBAI: Television shoots that were suspended due to the Covid2019 pandemic have now resumed following the necessary guidelines issued by the Maharashtra government. Sony SAB fans can now rejoice as the shoots for all shows have now resumed and will be back with new episodes soon. On 29 June, Sony...

Television Production House Film Production
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/04/Sunder%20Aaron.jpg?itok=EIZK9Wng
Locomotive Global's Sunder Aaron on "Seeker" & upcoming projects

MUMBAI: Sunder Aaron’s Locomotive Global develops, produces and distributes Indian-themed TV projects for both the local and international markets. The company has now partnered with Sameer Nair’s Applause Entertainment and Gurinder Chaddha’s Bend It Films & TV for an international drama series...

Television Production House Film Production
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/03/starwprld.jpg?itok=6lHWNy-d
Star World Invites You to Its ‘Weekend Watch Party’

After a long week of work, some leisure time is essential. With all our weekends now being spent within the confines of our home, there is no better time to catch-up on some of the most talked-about, mind-bending drama series on television! So, tune-in to Star World Weekend Watch Party every...

Television TV Channels English Entertainment
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/03/banijay.jpg?itok=FcHRhIEB
Banijay completes landmark deal to acquire Endemol Shine Group

MUMBAI: Banijay today announced the completion of the acquisition of Endemol Shine Group, previously co-owned by The Walt Disney Company and funds managed by affiliates of Apollo Global Management Inc. The closed deal, which has been successfully approved by the relevant regulators worldwide in...

Television Production House Fiction
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/03/barc.jpg?itok=7MVLSMfP
BARC week 25: Star Plus continues to hold top spot in urban market and pay platform

Star Plus topped the chart on the pay platform and in the urban market in Week 25 of 2020 ( Saturday 20 June 2020 to Friday 26 June 2020  ) of Broadcast Audience Research Council of India (BARC) data. However, Star Plus slipped down to seventh position in the rural market.

Television TV Channels Viewership
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/03/indiatv.jpg?itok=BYww9CQn
India TV makes 3 key appointments

India TV has appointed experienced professionals at three key positions. Ajay Kumar has been appointed as consulting editor, Anand Pandey will be editor- research and planning and Jaya Prakash Singh has joined as chief of bureau, Mumbai.

Television TV Channels News Broadcasting
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/07/03/tv.jpg?itok=N3bOhVl2
TV ad volumes on Kannada channels grow as Covid2019 situation improves

The third biggest contributor to south India’s ad space, amounting to Rs 5,000 crore in the year 2019 (as per TAM AdEx South Side Story), Karnataka is a crowded space when it comes to advertisers and marketers both.

Television TV Channels Regional

Sign up for our Newsletter

subscribe for latest stories

* indicates required