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Tag: Robert A.Iger

  • Maria Elena Lagomasino elected to Walt Disney’s board of directors

    Maria Elena Lagomasino elected to Walt Disney’s board of directors

    MUMBAI: The Walt Disney Company Board of Directors has elected financial advisory firm WE Family Offices’ CEO and managing partner Maria Elena Lagomasino as an independent director, effective 1 December, 2015.

     

    “Ms. Lagomasino is a respected leader in the finance and investment field and also has a wealth of experience with, and keen understanding of, global consumer brands. I know the Company and its shareholders will benefit greatly from her Board service,” said Disney chairman and CEO Robert A. Iger.

     

    “Disney is a brand that embodies the values I believe in, with its unwavering commitment to creating high-quality entertainment, exceeding consumer expectations, and delivering outstanding financial performance for its shareholders. I am honored to have the opportunity to serve on the Board of such an iconic and beloved company,” added Lagomasino.

     

    Lagomasino will stand for election along with the company’s other directors at Disney’s next annual meeting.

     

    Before founding WE Family Offices, Lagomasino served as GenSpring Family Offices CEO. Prior to that she was with JP Morgan Private Bank as chairman and CEO. Her career began in 1977 at Citibank. She joined Chase Manhattan Private Bank in 1983 and was named head of Chase’s worldwide private banking business in 1997. Following the Chase-JP Morgan merger, she became chairman and CEO of JP Morgan Private Bank.

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

    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

    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.

     

    Interactive

     

    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.

     

  • Disney Consumer Products names Leslie Ferraro as president

    Disney Consumer Products names Leslie Ferraro as president

    MUMBAI: Disney Consumer Products has named Leslie Ferraro as president. 

     

    A 16-year Disney veteran, Ferraro most recently served as Walt Disney Parks and Resorts’ executive vice president, global marketing, sales and travel operations, where she was responsible for leading the marketing and sales teams in developing numerous highly successful consumer campaigns worldwide.

     

    As president of Disney Consumer Products, Ferraro will oversee a global operation that delivers innovative and engaging products, from toys and apparel to books and fine art, through its Licensing, Publishing and Disney Store businesses. Ferraro assumes the role formerly held by Bob Chapek, who became Walt Disney Parks and Resorts chairman in February. 

     

    She will report directly to both The Walt Disney Company chairman and CEO Robert A. Iger and COO Thomas O. Staggs.

     

    “Leslie is a highly talented, proven executive with a strong track record of creativity and innovation. Having managed worldwide marketing and sales for one of our largest businesses, she brings a global perspective and deep knowledge of the company and its brands to her new position,” Iger said.

     

    “During her tenure at Parks and Resorts, Leslie was known for driving results and inspiring her teams to even greater achievements. She has a deep understanding of our brands and franchises, as well as a solid vision for how they fit into the global consumer marketplace, both of which will serve her extremely well as she leads the Disney Consumer Products team into the future,” added Staggs.

     

    “This is an exciting time at Disney Consumer Products, given the company’s unprecedented array of brands and franchises. I look forward to leading this dynamic business and our incredibly talented team as we continue to launch new products and retail experiences that combine technological innovation and creativity,” Ferraro said.

     

    Ferraro joined Disney in 1999 as director of marketing for Theme Parks and Resorts and went on to hold a variety of marketing leadership positions. She has also served on the Hong Kong Disneyland Board of Directors.

     

    Prior to joining Disney, Ferraro held various senior-level marketing positions at McCann-Erickson, Johnson & Johnson and SmithKline Beecham.

  • Disney’s Q2-2015 revenue up 7%, income up 10%

    Disney’s Q2-2015 revenue up 7%, income up 10%

    BENGALURU: The Walt Disney Company Inc reported an increase of seven per cent in its revenue in Q2-2015 (quarter ended 28 March, 2015, current quarter) to $12461 million from $11649 million in the corresponding year ago quarter. Net income during the current quarter improved 10 per cent to $2108 million from $1917 million reported for the quarter ended 27 March, 2014 (Q2-2014).

     

    Of the five segments that add to Disney’s numbers, three – Media Networks, Parks & Resorts and Consumer Products showed improvement in revenue, while the other two – Studio Entertainment and Interactive segments showed decline in revenues. Segment Operating Income from three – Parks and Resorts, Consumer Products, and Interactive increased, while segment operating income from Media Networks and Studio Entertainment declined in Q2-2015 as compared to Q2-2014.

     

    “Our second quarter performance, marked by increased revenue, net income and EPS of US 1.23, demonstrates the incredible ability of our strong brands and quality content to drive results. The power of this winning combination is once again reflected in the phenomenal worldwide success of Marvel’s Avengers: Age of Ultron, which has opened at number one in every market so far,” said Disney chairman and chief executive officer Robert A Iger.

     

     

    Segment Results

     

    Media Networks

     

     

    Media Networks revenues for the current quarter improved 13 per cent to $5810 million from $5134 million reported for Q2-2014. Operating Income from this segment declined two per cent to $2101 million in Q2-2015 from $2133 million in Q2-2014.

     

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

     

    Cable Networks reported a growth of 11 per cent in revenue to $4030 million in Q2-2015 from $3633 million in Q2-2014, but reported a drop of nine per cent in Operating Income to $1799 million in Q2-2015 as compared to the $1974 million in Q2-2014. The drop in income was due to a decrease at ESPN, which was driven by higher programming and production costs, partially offset by growth in affiliate and advertising revenues. Programming and production cost increases were due to higher rights costs for college football programming and the addition of an NFL wild card playoff game and the SEC Network, which was launched in August 2014.

     

    Disney says further that the increase in affiliate revenues was due to contractual rate increases, an increase in subscribers, taking into account the new SEC Network, and a reduction in revenue deferrals as a result of changes in contractual provisions related to annual programming commitments. ESPN advertising revenue growth was due to higher rates and units sold.

     

    Broadcasting reported 19 per cent hike in revenue in the current quarter to $1780 million from $1501 million and reported a massive 90 per cent increase in operating income to $302 million from $159 million in the corresponding quarter of last year due to growth in affiliate fees, higher program sales and an increase in advertising revenues. These increases were partially offset by higher marketing costs for the launch of new series.

     

    Parks and Resorts

     

    Parks and Resorts reported a growth of six per cent in revenue to $3760 million from $3562 million in the corresponding year ago quarter and a 24 per cent increase in Q2-2015 operating income to $566 million from $457 million in Q2-2014. 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 decline in revenue to $1685 million in Q2-2015 as compared to the $1800 million in Q2-2014, and segment operating income decreased 10 per cent to $427 million from $475 million in Q2-2014.

     

    Lower operating income was driven by decreases in domestic home entertainment and international theatrical distribution, partially offset by a higher revenue share with the Consumer Products segment, reflecting performance of Frozen merchandise in the current quarter, and lower film cost impairments. The decreases in domestic home entertainment and international theatrical distribution both reflected the performance of ‘Big Hero 6’ in the current quarter compared to Frozen in the prior-year quarter

     

    Consumer Products

     

    Consumer Products Q2-2015 revenue increased 10 per cent to $971 million from $885 million in Q2-2014 and operating income improved 32 per cent to $362 million from $274 million in Q2-2014.

     

    Higher operating income was primarily due to an increase at Disney’s Merchandise Licensing business due to the performance of merchandise based on Frozen and, to a lesser extent, The Avengers.

     

    Interactive

     

    Revenue from this segment fell 12 per cent to $235 million in Q2-2015 from $268 million in Q2-2014, but segment operating income increased 86 per cent to $26 million from $14 million in Q2-2014.

     

    Improved operating results were due to lower marketing and product development costs and the success of its mobile game Tsum Tsum, partially offset by lower ‘Disney Infinity’ performance and decreased sales of mobile game catalogue titles due to fewer titles in release. Lower marketing and product development costs were driven by fewer mobile game titles in development and the benefit of previous restructuring activities.

  • Disney shareholders re-elect board; reject split of CEO & chairman roles

    Disney shareholders re-elect board; reject split of CEO & chairman roles

    MUMBAI: Shareholders of The Walt Disney Company at the 2015 Annual Meeting today elected all 10 members of the Board of Directors and supported Board recommendations on the Company’s auditor and the advisory vote on executive compensation, based on preliminary results.

     

    Shareholders agreed with the Board in rejecting two shareholder proposals, one regarding the future selection of an independent Board chairman, and the other limiting accelerated executive pay.

     

    Disney chairman and CEO Robert A. Iger welcomed shareholders to the meeting at The Palace of Fine Arts Theatre in San Francisco and introduced independent lead director Orin C. Smith and the other members of the Board of Directors.

     

    “We’ve had four straight years of record results. Driven by extraordinary creativity, innovative technology and global expansion, 2014 was in fact the best year in our history. Our revenue was up 8 per cent to $48.8 billion, our net income was up 22 per cent to $7.5 billion, and our EPS was up 26 per cent to $4.26.

     

    “Total shareholder return for the year was 38 per cent — almost double the 20 per cent return delivered by the S&P 500 during the same period—and we also paid our 59th straight year of dividends, increasing the dividend per share by 34 per cent,” Iger noted.

     

    Iger introduced Walt Disney and Pixar Animation Studios chief creative officer John Lasseter, who announced that Disney will be making Frozen 2, reuniting the same creative team and cast from the first film. 

     

    Iger also announced that Star Wars: Episode VIII will be released 26 May, 2017, and that the first stand-alone Star Wars movie featuring characters and events beyond the core Star Wars saga will be titled Rogue One and released in December 2016.

     

    Based on preliminary results, all Disney Directors standing for election were re-elected to the Board: Susan E. Arnold, John S. Chen, Jack Dorsey, Robert A. Iger, Fred H. Langhammer, Aylwin B. Lewis, Monica C. Lozano, Robert W. Matschullat, Sheryl K. Sandberg and Orin C. Smith.

     

    Shareholders ratified the appointment of PricewaterhouseCoopers LLP as the company’s independent accountants for the fiscal year ending October 3, 2015. They also approved the advisory resolution on executive compensation.

     

    Final voting tallies from this year’s annual meeting are subject to certification by the company’s inspector of elections, and will be included in the company’s report to be filed with the Securities and Exchange Commission within a week.

  • Walt Disney commits $1 million to United Negro College Fund

    Walt Disney commits $1 million to United Negro College Fund

    MUMBAI: UNCF (United Negro College Fund), one of America’s leading minority scholarship organizations, announced a $1 million commitment from The Walt Disney Company to provide scholarships to outstanding African American students and give them the tools to realize their professional goals. 

     

    The Walt Disney Company UNCF Corporate Scholars Program, administered by UNCF, will offer financial assistance to high-achieving African American students in underserved communities across the country, while expanding educational and career resources for them.

     

    “UNCF works to ensure our future leaders have the opportunity to obtain the college degrees they need, and our nation needs them to have. The Walt Disney Company UNCF Corporate Scholars Program expands their academic training into practical experiences, to create a diverse pipeline of college educated professionals poised to assume fulfilling careers in the entertainment industry. The investment we are making in better futures for them now will pay dividends in years to come when they become our next generation of leaders,” said UNCF president and CEO Michael L. Lomax.

     

    “Higher education is the key to a successful future, especially in an increasingly knowledge-driven economy. Our program with UNCF will provide tools and resources to make college more accessible for promising students in historically underserved communities, so they are prepared and empowered to achieve their career dreams,” added The Walt Disney Company chairman and CEO Robert A. Iger.

     

    Paying for college is often the greatest hurdle to achieving a bachelor’s degree, especially for the students UNCF traditionally serves – low-income youth and the first in their families to go to college, with more than 50 per cent coming from families whose incomes are less than $30,000 per year. The Walt Disney Company UNCF Corporate Scholars will be selected based on a competitive application process administered by UNCF. Recommended eligibility criteria include: Underrepresented African American freshmen, enrolled full-time at a four-year college or university; Preference will be given to students attending a Historically Black College or University (HBCU) to ensure 50 per cent of each group are derived from these schools; Students must have a demonstrated financial need as verified by their college or university; Students must have a minimum cumulative 2.5 GPA on a 4.0 scale; and Students must have an interest in pursuing a career in the entertainment industry (e.g. film, television, hospitality management, journalism, media production, digital media, etc.) as demonstrated by submission of an initial essay and participation in program components.

     

    The Corporate Scholars program also includes the creation of a Career Navigator web-based platform that will provide both career information and tools to a broad network of African American students, as well as targeted support services to scholarship recipients. The platform, to be launched this fall, will help students develop requisite skills, and navigate the transition from college to early-stage careers. Web-based and facilitated learning modules will introduce students to the variety of careers at Disney, and Scholars will also have the opportunity to apply for Disney internships.

     

    Students can find additional information at www.uncf.org/disneyscholars. The application process opens 16 March, 2015 and closes 15 May, 2015.

  • Walt Disney Parks & Resorts names Bob Chapek as chairman

    Walt Disney Parks & Resorts names Bob Chapek as chairman

    MUMBAI: Bob Chapek has been named chairman of Walt Disney Parks and Resorts.

     

    A 22-year veteran of The Walt Disney Company, Chapek has served since 2011 as president of Disney Consumer Products, driving a technology-led transformation of the company’s consumer products, retail and publishing operations. He assumes his new role effective immediately.

     

    “Under Bob’s leadership, Consumer Products has seen great success, focusing on brands and a franchise-driven strategy while launching new products and retail experiences that combine technological innovation and creativity. He is an experienced and versatile executive well-suited to lead Parks and Resorts into the future,” said The Walt Disney Company chairman and CEO Robert A. Iger.

     

    As chairman of Parks and Resorts, Chapek succeeds Thomas O. Staggs, who was named Disney’s chief operating officer earlier this month. Chapek will report to both Iger and Staggs.

     

    “Bob is stepping into this role at an incredibly dynamic and exciting time for our Parks and Resorts business. The ongoing construction of Shanghai Disney Resort as well as the new Avatar-themed land at Walt Disney World continues an era of unprecedented growth and historic expansion,” Staggs said.

     

    “I am grateful for the many opportunities I have had during my years at Disney, and am thrilled to join the incredible Disney Parks organization. I look forward to working with the remarkably talented team dedicated to creating magical memories for millions of guests around the world,” Chapek added.

     

    A successor to Chapek at Disney Consumer Products will be named at a later date.

     

    Prior to leading Disney Consumer Products, Chapek served as president of distribution for The Walt Disney Studios from 2009 to 2011, and was responsible for overseeing the Studios’ overall content distribution strategy across multiple platforms including theatrical exhibition, home entertainment, pay TV, digital entertainment and new media. He also served as president of Walt Disney Studios Home Entertainment, where he spearheaded the successful “vault strategy” for the company’s iconic films and transformed the primary format of home entertainment from DVD to Blu-ray.

     

    Before joining Disney in 1993, Chapek worked in brand management at H.J. Heinz Company and in advertising at J. Walter Thompson.

  • Walt Disney appoints Thomas O. Staggs as COO

    Walt Disney appoints Thomas O. Staggs as COO

    MUMBAI: Thomas O. Staggs has been named chief operating officer (COO) of The Walt Disney Company.

     

    A 25-year Disney veteran, Staggs is chairman, Walt Disney Parks and Resorts, overseeing the strategy, operations and creative development of the company’s iconic travel and leisure businesses. He will assume the role of COO immediately, while continuing to lead Parks and Resorts until a successor is named. Disney’s senior management team, including all business segment leaders, will report jointly to The Walt Disney Company chairman and CEO Robert A. Iger and Staggs, with the exception of the chief financial officer, general counsel, chief communications officer and chief human resources officer, who will continue to report directly to Iger.

     

    “Tom is an incredibly experienced, talented and versatile executive who has led Parks and Resorts during a time of unprecedented growth and expansion, including the construction of Shanghai Disney Resort. His proven ability to lead a business as well as his successful tenure as Disney’s former CFO make him an ideal chief operating officer, expanding his portfolio into all the company’s businesses,” Iger said.

     

    “It’s a privilege to step into this role, and I am humbled and honoured by the opportunity. I look forward to working more closely with Bob and the talented senior management team across the company to continue to build Disney’s future through unparalleled creativity, innovative technology and global expansion,” Staggs said.

     

    Since 2010, Staggs has led Parks and Resorts’ global team with the segment delivering record revenue, profit and attendance levels. In addition to overseeing the development of Shanghai Disney Resort, and a new Avatar-themed land at Disney’s Animal Kingdom Park, during Tom’s tenure, Disney has launched two new cruise ships; opened Aulani, a Disney Resort & Spa, in Hawai‘i; added three new lands at Hong Kong Disneyland; doubled the size of Fantasyland at the Magic Kingdom; and completed a multi-year expansion of the Disneyland Resort with the addition of Cars Land and Buena Vista Street at Disney California Adventure Park.

     

    Prior to that, Staggs served as senior executive vice president and CFO of The Walt Disney Company. He played a critical role in the execution of the acquisitions of Capital Cities/ABC, Pixar Animation Studios and Marvel Entertainment. As CFO for 12 years, he spearheaded the realignment of Disney’s performance goals toward the combination of profit growth and strong long-term capital returns and free cash flow.He has been praised by Wall Street for his financial and communications skills, and was consistently voted the entertainment industry’s No. 1 CFO by Institutional Investor magazine.

     

    Staggs joined Disney in 1990 as manager of strategic planning and quickly advanced through a series of positions of increased responsibility, leading to his appointment as CFO in 1998. Before joining Disney, he worked in investment banking at Morgan Stanley & Co.

  • Consumer products segment leads Disney’s record profits for Q1-2015

    Consumer products segment leads Disney’s record profits for Q1-2015

    BENGALURU: The Walt Disney Company Inc (Disney) reported 17.4 per cent higher operating income (op inc) of $3545 million (27.7 per cent of all segment operating revenue or TIO) for Q1-2015 (quarter ended 27 December, 2014, current quarter) versus $3020 million (24.5 per cent of TIO) in quarter ended 28 December, 2013 – Q1-2014.Op Inc in Q1-2015 was 27.7 per cent more than the Op Inc reported for the immediate trailing quarter (Q4-2014, previous quarter, quarter ended 27 September, 2014) at $2775 million (22.4 per cent of TIO).

     

    Leading the growth with a 45.6 per cent y-o-y increase in Q1-2015 at $626 million from the $430 million was its Consumer Products segment (CP).CP’s Op Inc in Q1-2015 grew 65.2 per cent from the $379 million in Q4-2014.Though a couple of Disney’s segments reported drops in revenues, Op Inc of all of Disney’s other segments – Media Networks (MN), Parks & Resorts (P&R), Studio Entertainment (SE) and Interactive, also showed positive y-o-y and q-o-q growth.

     

    Disney’s TIO for Q1-2015 grew 8.8 per cent y-o-y to $13391 million from $12309 million and was 8.1 per cent higher q-o-q than the $12389 million in Q4-2015.

     

    “This was yet another incredibly strong quarter for our Company, with diluted EPS up 23 per cent driven by record revenue as well as significant growth in segment operating income, ” said Disney chairman and CEO Robert A Iger.”Our results once again reflect the strength of our brands and high quality content and demonstrate that our proven franchise strategy creates long-term value across all of our businesses”

     

    Disney Segment results

     

    Media Networks

     

    MN is Disney’s largest segment, both in terms of revenue and Op Inc.MN reported 2.7 per cent growth in Op Inc to $1495 million (41.2 per cent of all Op Inc) in the current quarter from the $1455 million (48.2 per cent of all Op Inc) in Q1-2014 and a growth of 4 per cent from $1437 million (51.8 per cent of all Op Inc) in Q4-2014.

     

    During Q1-2015, MN revenue grew 10.8 per cent to $5860 million (43.8 per cent of TIO) from $5290 million (43 per cent of TIO) in Q1-2014 and was 12.3 per cent more than the $5217 million (42.1 per cent of TIO) in the previous quarter.

     

    Two sub-segments contribute to MN – Cable Networks and Broadcasting

     

    Cable Networks

     

    Cable Networks reported 11 per cent growth in revenue in Q1-2015 to $4166 million from $3759 million in Q1-2014.Cable Network’s Op Inc fell two per cent to $1255 million from $1277 million in Q1-2014.

     

    Disney says that Operating income at Cable Networks decreased two per cent due to a decrease at ESPN, which was partially offset by increases at the worldwide Disney Channels and ABC Family.

     

    The decrease at ESPN was due to higher programming and production costs and, to a lesser extent, higher marketing, general and administrative and technical costs and lower advertising revenue.These decreases were partially offset by affiliate fee contractual rate increases, a reduction in revenue deferrals as a result of changes in contractual provisions related to annual programming commitments and an increase in subscribers, taking into account the new SEC Network.

     

    Programming and production cost increases were due to a contractual rate increase for NFL programming and rights costs for the SEC Network.ESPN advertising revenue decreased due to lower ratings for certain of our programs, partially offset by higher rates.

     

    The increase at the worldwide Disney Channels was due to higher affiliate rates for the domestic channels and higher international advertising revenues, partially offset by higher programming costs.

     

    International advertising revenues were driven by the company’s new channel in Germany, which was launched in January 2014.Increased programming costs were driven by higher pilot write-offs and costs for the new channel in Germany.The increase at ABC Family was due to higher affiliate revenue due to higher rates and increased advertising revenue reflecting higher units sold.

     

    Broadcasting

     

    Revenue from Broadcasting grew 11 per cent to $1694 million in Q1-2015 from $1531 million in Q1-2014.Op Inc for this sub-segment grew 35 per cent to $240 million from $178 million in Q1-2014.

     

    The company says that Operating income at Broadcasting increased due to an increase in affiliate fees and higher program sales.These increases were partially offset by lower advertising revenue.

     

    The increase in affiliate revenues was due to contractual rate increases and new contractual provisions.Program sales growth included higher sales of Criminal Minds, Scandal and Once Upon A Time.Lower advertising revenue was due to fewer units sold at the ABC Television Network, partially offset by an increase at the owned television stations due to higher political advertising and an increase from higher primetime rates.

     

    Parks & Resorts

     

    P&R revenue in the current quarter at $3910 million (29.2 per cent of all revenue) was 8.7 per cent more than the $3597 million (29.2 per cent of TIO) in Q1-2014 but was 1.3 per cent lower than the $3960 million (32 per cent of TIO) in the previous quarter.

     

    P&R reported 20 per cent growth in Op Inc to $805 million (22.7 per cent of all Op Inc) in Q1-2015 from $671 million (22.2 per cent of all Op Inc) and a growth of 17.2 per cent from the $687 million (24.8 per cent of all Op Inc) in the previous quarter.

     

    Disney says that Operating income growth for the quarter was driven by an increase at domestic operations, partially offset by a decrease at its international operations.

     

    Higher operating income at Disney’s domestic operations reflected both higher volumes and guest spending growth at its parks and resorts and, to a lesser extent, at its cruise business, partially offset by higher costs.Guest spending growth at Disney’s parks and resorts reflected higher average ticket prices and increased merchandise, food and beverage spending.The volume increase at its cruise business reflected higher passenger cruise ship days due to the impact of the Disney Magic being in dry-dock for a portion of the prior-year quarter.Increased costs were driven by labour and other cost inflation, higher pension and post-retirement medical costs and increased depreciation driven by new attractions.

     

    The decrease at Disney’s international operations was driven by higher Shanghai Disney Resort pre-opening expenses, the impact of a weaker Japanese yen on Tokyo Disney Resort royalties and higher costs at Hong Kong Disneyland Resort, partially offset by an increase at Disneyland Paris.The increase at Disneyland Paris was due to higher guest spending, attendance and occupied room nights, partially offset by higher costs driven by higher volumes, new guest offerings and marketing costs.The increase in guest spending was driven by higher average ticket prices.

     

    Studio Entertainment

     

    SE reported a 1.8 per cent drop in revenue to $1858 million (13.9 per cent of TIO) in the current quarter from $1893 million (15.4 per cent of TIO) reported for the year ago quarter and a 4.5 per cent growth from the $1178 million (14.4 per cent of TIO) in the previous quarter.

     

    SE Op Inc in Q1-2015 grew 30 per cent to $544 million (15.3 per cent of all Op Inc) in the current quarter from $409 million (13.5 per cent of all Op Inc) in Q1-2014 and more than doubled (up 2.14 times) from $254 million (9.2 per cent of all Op Inc) in the previous quarter.

     

    The company says that higher operating income was due to an increase in home entertainment results, higher revenue share with the Consumer Products segment due to the performance of Frozen merchandise and higher TV/SVOD distribution results driven by more titles available internationally.These increases were partially offset by lower theatrical distribution results.

     

    The increase in home entertainment results was driven by higher unit sales and lower per unit costs.

     

    Unit sales growth was driven by Marvel’s Guardians of the Galaxy, Frozen and Maleficent in the current quarter compared to Monsters University and The Lone Ranger in the prior-year quarter, which did not include the release of a Marvel title.The decrease in unit costs reflected distribution cost savings and lower production cost amortization reflecting a higher amortization rate on The Lone Ranger in the prior year quarter.

     

    Lower theatrical distribution results reflected the performance of Big Hero 6 in the current quarter compared to Frozen in the prior-year quarter.In addition, the current quarter included the continuing performance of Marvel’s Guardians of the Galaxy, which was released in the fourth quarter of fiscal 2014 whereas the prior-year quarter included the release of Marvel’s Thor: The Dark World.

     

    Consumer Products

     

    CP Op Inc has been mentioned above.CP revenue in Q1-2015 grew 22.5 per cent to $1379 million (10.3 per cent of TIO) from $1126 million (9.1 per cent of TIO) in Q1-2014 and was 28.6 per cent more than the $1072 million (8.7 per cent of TIO) in the immediate trailing quarter.

     

    Disney says that higher operating income was due to increases at its Merchandise Licensing and Retail businesses.The increase in operating income at Merchandise Licensing was due to the performance of merchandise based on Frozen and, to a lesser extent, Disney Channel properties, Mickey and Minnie, Spider-Man and Avengers.

     

    At Disney’s Retail business, higher operating income for the quarter was due to comparable store sales growth and higher online sales in all regions driven by sales of Frozen merchandise.

     

    Interactive

     

    Interactive is Disney’s smallest in terms of revenue and Op Inc.Interactive reported revenue of $384 million (3.1 per cent of TIO) in Q1-2015, $403 million (3.3 per cent of TIO) in Q1-2014 and $362 million (2.9 per cent of TIO) in Q4-2014.

     

    Op Inc for the Interactive segment grew to US 73 million in Q1-2015 versus the $55 million in Q1-2014 and $18 million in Q4-2014.

     

    The company says that improved operating results were due to an increase at its mobile games business driven by the success of Tsum Tsum and Frozen Free Fall as well as lower product development costs due to fewer titles in development.This increase was partially offset by lower results at our console games business reflecting higher per unit costs driven by the mix of Disney Infinity products sold, lower unit sales and higher marketing costs.The decrease in unit sales was driven by lower sales of Infinity accessories and catalogue titles, partially offset by higher sales of Infinity starter packs.

     

    Click here to read first quarter earnings for fiscal 2015

  • Disney FY-2104 op inc grows 21 per cent; Studio Entertainment segment op inc up 234 per cent

    Disney FY-2104 op inc grows 21 per cent; Studio Entertainment segment op inc up 234 per cent

    BENGALURU: The Walt Disney Company Inc (Disney) reported operating income (op inc) of $ 13,005 million (26.6 per cent of overall revenue or TIO) in the year ended 27 September 2014 (FY-2014), up 21.3 per cent from the $ 10,724 million (23.8 per cent of TIO) in FY-2013. The company’s TIO in FY-2014 at $ 48,813 million was 8.4 per cent more than the $ 45,041 million in 2013.

     

    “Our results for fiscal 2014 were the highest in the company’s history, marking our fourth consecutive year of record performance,” said Disney chairman and CEO Robert A Iger. “We’re obviously very pleased with this achievement and believe it reflects the extraordinary quality of our content and our unique ability to leverage success across the company to create significant value, as well as our focus on embracing and adapting to emerging consumer trends and technology.”

     

    Disney’s Studio Entertainment segment reported a 234.3 per cent growth in op inc in FY-2014 at $ 1,549 million (11.9 per cent of all op inc) from $ 661 million (6.2 per cent of all op inc) in FY-2013. This segment’s revenue in FY-2014 at $ 7,278 million (14.9 per cent of TIO) grew 21.7 per cent to $ 5,979 million (13.3 per cent of TIO) in the previous year.

     

    Here is what Disney has to say about Studio Entertainment numbers: 

     

    Higher operating income was driven by increases in worldwide theatrical distribution and worldwide home entertainment. Higher worldwide theatrical distribution results were due to the success of Guardians of the Galaxy and Maleficent in the current quarter compared to Monsters University and The Lone Ranger in the prior year quarter.

     

    The increase in worldwide home entertainment was due to higher unit sales, lower per unit costs and higher net effective price resulting from the success of Frozen. Other significant titles included Captain America 2: The Winter Soldier in the current quarter and Iron Man 3 in the prior-year quarter. 

     

    Let us look at the results for FY-2014 and Q4-2014 reported by Disney.

     

     Overall Revenue:

     

    In Q4-2014 (quarter ended September 27, 2014), Disney reported a 7.1 growth of TIO to $ 12,389 million from US$ 11568 million in the corresponding quarter of last fiscal, but was marginally less (0.6 per cent less) than the $ 12,466 million in Q3-2014. 

     

    Q4-2014 op inc at $ 2,775 million (22.4 per cent of TIO) in Q4-2014 was 11.7 per cent more than the $ 2,484 million (21.5 per cent of TIO) in Q4-2013, but 28.1 per cent lower than the $ 3,857 million (30.9 per cent of TIO) in Q3-2014. 

     

    Segment Revenue: 

     

    Five segments contribute to Disney’s numbers – Media Networks; Parks and resorts; Studio entertainment; Consumer products; and Interactive.

     

    Media Networks Segment:

     

    The company’s Media Network segment is the largest in terms of contribution to overall revenue (TIO) and op inc This segment consists of two sub-segments – Cable Networks and Broadcasting.

     

    In FY-2014, Disney’s Media Network segment reported revenue of $ 21,152 million (43.3 per cent of TIO), up 3.9 per cent from the $ 20,356 million (45.2 per cent of TIO) in FY-2013. Op inc from this segment rose 7.4 per cent to $ 7,321 million (56.3 per cent of overall op inc) in FY-2014 from $ 6,818 million (63.6 per cent of overall op inc) in FY-2013.

     

    Disney’s Media Network segment reported 5.5 per cent rise in revenue from $ 4,946 million (42.8 per cent of TIO)  in Q4-2013 to $ 5,217 million (42.1 per cent of TIO) in Q4-2014, but was 5.3 per cent less than $ 5,511 million (44.2 per cent of TIO) in Q3-2014. Op inc dropped marginally by 0.3 per cent from $ 1,443 million (58.1 per cent of overall op inc) in Q4-2013 to $ 1,437 million in Q4-2014, but was 37.2 per cent lower than the $ 2,296 million (59.5 per cent of overall Op Inc) in Q3-2014 (51.8 per cent of op rev).

     

    Parks and Resorts

     

    In FY-2014, this segment’s revenue at $ 15,099 million (30.9 per cent of TIO) grew 7.2 per cent from $ 14,087 million (31.3 per cent of TIO) in FY-2013. Op inc increased 20 per cent in FY-2014 to $ 2,663 million (20.5 per cent of overall op inc) from $ 2,220 million (20 per cent of overall op inc) in FY-2013.

     

    Disney’s Parks and resorts segment reported 6.6 per cent growth in y-o-y revenue to $ 3,960 million (32 per cent of TIO) in Q4-2014 from $ 3,716 million (32.1 per cent of TIO) in Q4-2013, but marginally less (0.5 per cent less) than the $ 3,980 million (31.8 per cent of overall revenue) in Q3-2014. This segment’s op inc grew 6.6 per cent to $ 687 million (24.8 per cent of overall op inc) in Q4-2014 from $ 571 million (23 per cent of overall op inc), but was 19 per cent less than the $ 848 million (22 per cent of overall op inc) in Q3-2014.

     

    Here is what Disney has to say about Parks and Resorts numbers:

     

    Operating income growth for the quarter was due to an increase at our domestic operations, partially offset by a decrease at our international operations.

     

    Higher operating income at our domestic operations was driven by increased guest spending and attendance, partially offset by higher costs and lower vacation club ownership sales. The increase in guest spending was primarily due to higher average ticket prices for theme park admissions and for sailings at our cruise line and increased food, beverage and merchandise spending. Higher costs reflected increased costs for MyMagic+ and the absence of an offset in the prior-year quarter from a property sale, partially offset by lower pension and post-retirement medical costs. Decreased vacation club ownership sales reflected the prior-year success of The Villas at Disney’s Grand Floridian Resort & Spa, for which sales commenced at the end of the third quarter of fiscal 2013.

     

    The decrease at our international operations was due to lower operating performance at Disneyland.

     

    Lower operating income at Disneyland Paris was driven by higher operating and marketing costs and lower attendance, partially offset by increased guest spending, due to higher average ticket prices, and higher real estate sales.

     

    Studio Entertainment

     

    Three sub-segments of the Studio entertainment segment contribute to Disney’s revenue – Theatrical distribution; Home entertainment; and TV/SVOD distribution and other.

     

    Annual figures for this segment have been mentioned above.

     

    Disney’s Studio entertainment segment reported 18.1 per cent jump in revenue in Q4-2014 at $ 1,778 million (14.4 per cent of TIO) from $ 1,506 million (13 per cent of TIO), but was 1.6 per cent lower than the $ 1,807 million (14.5 per cent of TIO). This segment reported more than double (2.35 times) growth in op Inc in Q4-2014 at $ 254 million (9.2 per cent of overall op inc), but was 38.2 per cent lower than the $ 411 million (10.7 per cent of overall revenue) in Q3-2014. 

     

    Consumer Products 

     

    This segment has two revenue streams – licensing and publishing (licensing); and retail and other (retail).

     

    Consumer products segment reported 12.1 per cent growth in consumer products to $ 3,985 million (8.2 per cent of TIO) in FY-2014 from $ 3,555 million (7.9 per cent of TIO) in the last year. Op inc from this segment for FY-2014 grew 21.9 per cent to $ 1,356 million (10.4 per cent of overall op inc) from $ 1,112 million (10.4 per cent of overall op inc).

     

     Disney’s Consumer products segment reported 6.8 per cent increase in revenue in Q4-2014 to $ 1,072 million (8.7 per cent of TIO) from $ 1,004 million (8.7 per cent of TIO) in Q4-2013 and 18.8 per cent more than the $ 902 million (7.2 per cent of all revenues) in Q3-2014. This segment reported 9.2 per cent hike in op inc to $ 379 million (13.7 per cent of overall op inc) from $ 347 million (14 per cent of overall revenue) in Q4-2013 and 38.8 per cent more than the $ 273 million (7.1 per cent of overall Op Inc) in Q3-2014. 

     

    Disney says that higher operating income from Consumer products was due to an increase at its Merchandise Licensing business driven by the performance of Frozen and Spider-Man merchandise partially offset by lower revenues from Monsters and Iron Man merchandise.

     

    Interactive 

     

    Disney says that Interactive revenues for the quarter (Q4-2014) decreased by $34 million to $362 million, and segment operating income increased to $18 million driven by the success of our mobile game Tsum Tsum and recognition of a minimum guarantee for a games licensing contract. These increases were partially offset by lower Disney Infinity performance due to the timing of the launch of Disney Infinity 2.0, which was launched on 23 September 2014, compared to Disney Infinity 1.0, which was launched on 18 August 2013.

     

     

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