Jay Chan's List: DIS (Walt Disney)

• BUSINESS SEGMENT RESULTS – 2008 vs. 2007

  • Operating income increased in 2007 and 2008 but big in 2007 there was also gains from sale.
• Segment operating income increased 11%, or $480 million, to $4.8 billion for the year due to an increase of $523 million at the Cable Networks partially offset by a decrease of $43 million at Broadcasting.

  • 2008 op income is really higher (not like 2007 which had ex-items). $500 mm from cable revenues and broadcasting.
• Segment operating income increased 11%, or $187 million,
• Segment operating income decreased 9%, or $109 million,
• Segment operating income increased 14%, or $87 million
• Segment operating income increased 23%, or $794 million, to $4.3 billion for the year due to increases of $576 million at the Cable Networks

• Other (expense) / income

         $         1,004     

  • In 2007, there was $1 bln of extra-ordinary gains from sale of E! and Us Weekly

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• The decrease at Broadcasting was primarily due to lower advertising sales at the owned television stations and higher programming costs

  • Big problems this downturn seemed to be advertising spend decline at Broadcasting and occupancy declines at Theme Parks
• Revenues were unfavorably impacted by the shift of the Easter holiday season from the second quarter of fiscal 2008 to the third quarter of fiscal 2009.
• Decreased guest spending at Walt Disney World Resort reflected lower average daily hotel room rates, lower average ticket prices and decreased merchandise spending and lower guest spending at Disneyland Resort was driven by lower average ticket prices and decreased merchandise spending. Lower revenues at Disney Vacation Club reflected unfavorable impacts associated with securitized ownership interests, decreased sales of term extensions on certain existing properties and lower rentals of vacation club units.

• Per Room Guest Spending

          $ 199 
• Lower worldwide home entertainment revenues were primarily due to lower unit sales in the domestic market

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