(12-10-2016 11:19 AM)solohawks Wrote: [ -> ] (12-10-2016 11:10 AM)AppfanInCAAland Wrote: [ -> ] (12-10-2016 10:52 AM)jaredf29 Wrote: [ -> ] (12-10-2016 10:32 AM)Niner National Wrote: [ -> ]Doesn't ESPN generate the bulk of Disney revenue?
I think they get a lot of money from the MCU.
Disney's cash cow is the theme park division. Everything else they do is designed to get people to Orlando and Anaheim (or Paris, Hong Kong, etc) where they are basically printing money.
https://www.washingtonpost.com/news/the-...116a7ef61e
ESPN is first at 24 billion
Theme parks are 2nd at 17 billion
but you are looking at "revenues" while investors and CEOs and CFOs look at "profits"
this is similar to many sports fans especially college sports that talk about "all the money that college sports teams "MAKE"" while again not understanding that the VAST majority of college sports teams MAKE ZERO they LOSE a ton of money because they spend a great deal more money to give athletes top flight coaches and training facilities and venues to perform in than they actually take in for revenues much less the food, housing, health care and education that so many athletes place ZERO value on
this is from the link you provided
https://ditm-twdc-us.storage.googleapis....rnings.pdf
Media Networks
Media Networks revenues for the quarter decreased 3% to $5.7 billion, and
segment operating income decreased 8% to $1.7 billion. The following table provides further detail of the Media Networks results
Cable Networks
Operating income at Cable Networks decreased $207 million to $1.4 billion for the quarter due to decreases at ESPN and the Disney Channels, partially offset by an increase at Freeform.
Broadcasting
Operating income at Broadcasting increased $60 million to $224 million for the quarter due to higher operating income from program sales, an increase in affiliate revenue and a decrease in compensation-4 related costs, partially offset by higher programming costs, lower advertising revenue and an increase in equity losses from Hulu
Parks and Resorts
Parks and Resorts revenues for the quarter increased 1% to $4.4 billion, and
segment operating income decreased 5% to $699 million due to a decrease at our international operations, partially offset by an increase at our domestic operations.
Studio Entertainment
Studio Entertainment revenues for the quarter increased 2% to $1.8 billion, and
segment operating income decreased $149 million to $381 million. The decrease in operating income was driven by lower theatrical distribution results, partially offset by growth in TV/SVOD distribution.
Consumer Products & Interactive Media
Consumer Products & Interactive Media revenues for the quarter decreased 17% to $1.3 billion, and segment
operating income decreased 5% to $424 million. The decrease in revenue was primarily due to the discontinuation of our Infinity console game business. Lower operating income was driven by decreases at our merchandise licensing and games businesses, partially offset by an increase at our publishing business due to cost saving initiatives.
so we have Operating Income is a synonym for earnings before interest and taxes (EBIT) and is also referred to as "operating profit" or "recurring profit." Operating income is calculated as: Operating income = gross income - operating expenses - depreciation - amortization.
so "Media Networks" operating income for the quarter was down 8% to $1.7 billion
"Parks and Rec" down 5% to $699 million
"Studio Entertainment" down $149 million to $381 million
and "Consumer Products $ Interactive Media" down 5% to $424 million
but the important part as it relates to ESPN is this
"Cable Networks" operating income down $207 million to $1.4 billion
"Broadcasting" operating income UP $60 million to $224 million
so cable operating income was down 12.88% in a single quarter while broadcast was up 36.58%
and the "Cable Networks" includes the Disney lineup as well
so while ESPN brings in a large chunk of revenues their operating income is declining rapidly at a time that broadcast is actually up and with the exception of "Studio entertainment" the "Cable Networks" had the largest decrease in operating income and at least "Studio entertainment" had an increase in total revenues
it is much easier to turn around a profit/loss with an increase on total income than it is to turn that around while also facing declining total income which is what the "Cable Networks" are facing
and while the "Consumer Products and Interactive Media" also had a large decrease in total revenues (the only one besides "Cable Networks") that was in part to a one time action of ditching a failed gaming console while the "Cable Networks" are facing continued and rapidly increasing subscriber decreases
so even the "Broadcast" portion of the equation had an increase on total revenue and they were the only one with an increase in operating income and all the other segments with the exception of one at least had an increase on operating revenues even with a decrease in operating income and the one with the decrease in revenues had a one time event on there
and again the "Cable Networks" includes other channels besides ESPN
so while ESPN is still responsible for a large amount of revenues and a large amount of profits they are combined with other Disney cable channels and they are the one that is facing dramatic total revenue declines that only look to increase and they ones that are facing extremely large operating income declines
and again it is very difficult to "turn it around" when you are looking at both large decreases in total revenues and operating income Vs at least increasing revenues while having operating income decreases
it is clear that ESPN needs to get ahead of their revenue declines at a much faster rate because the 12.88% operating income decrease for "Cable Networks" is much larger than the 3% decrease in "Media Networks" total revenues and that was with "Broadcast" having a 36.58% increase in operating income