
Below are my key takeaways from the Disney Q3 2016 Earnings Call on Aug 9:
Summary:
Bob Iger, CEO, said “two things are clear: the multi-channel bundle delivers the most value to us, and remains a great value proposition to consumers. Therefore, our top priority is to support it, and to do what we can to maintain or enhance its value to customers. We also know that new platforms and new entrants in the digital video space are offering consumers more flexibility and variety, with exciting new products and impressive user experiences. And we must create or take advantage of these new opportunities, in ways that are complementary to the multi-channel offering.”
Total Revenue grew 9% in the quarter to $14,277MM. Net Income was up 5% YoY to $2,597MM resulting in a Diluted EPS of $1.59, compared to $1.45 a share last year.
Media Networks’ revenue of $5,906MM (made up of Cable Networks $4,200MM and Broadcasting $1,706MM) was 41% of the total and a 2% increase YoY. ESPN saw revenue growth due to contractual rate hikes and an increase in ad units sold thanks to an additional NBA finals game. ESPN programming costs went up because of renewals for The Masters and international soccer rights, along with contractual rate hikes for NBA and MLB. Disney Channel and Freeform (formerly Disney Family) gained from higher affiliate revenue, but were down overall because of a decrease in program sales.
Continue reading “Q2 2016 (their Q3) – Disney Earnings Call Summary” →