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Disney - Sky is the Limit - Part 2

Corporate Finance - 670
by

Geo Sainte

on 8 April 2014

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Transcript of Disney - Sky is the Limit - Part 2

Company Analysis
Disney Common size balance sheet
Segment Results
THE WALT DISNEY COMPANY
Disney Mission Statement:
"The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world."
Balance Sheet Common-size Financial Statements Analysis
Walt Disney "It all Started With a Mouse
SKY IS THE LIMIT
Company Profile
Founded by brothers, Walt Disney and Roy Disney, on October 16,1923.
The Walt Disney Company, commonly known as Disney, together with its subsidiaries and affiliates, is an American-leading, diversified, international, family entertainment, and media enterprise with five business segments:
Media networks
Parks and Resorts
Studio entertainment
Consumer products
Interactive media
A company balance sheet that displays all items as percentages of a common base figure.
This type of financial statement can be used to allow for easy analysis between companies or between time periods of a company.
FOURTH QUARTER
& FULL YEAR EARNINGS
Revenues for the year increased 7% to a record $45.0 billion
EPS for the year increased 8% to a record $3.38 compared to $3.13 in the prior year
Net income for the year increased 8% to a record $6.1 billion
SEGMENT RESULTS
Shareholders’ equity
PRIOR QUARTER
RECOMMENDATION
GEORGE SAINTEUS
MG-670

Location: http://prezi.com/qoov0xtsjw4z/disney-sky-is-the-limit-part-2/

SKY IS THE LIMIT
Segment Results
FOURTH QUARTER

Media Networks revenues for the quarter increased 1% to $4.9 billion and segment operating income decreased 8% to $1.4 billion.
Parks and Resorts revenues for the quarter increased 8% to $3.7 billion and segment operating income increased 15% to $571 million.
Studio Entertainment revenues for the quarter increased 7% to $1.5 billion and segment operating income increased $28 million to $108 million.
Consumer Products revenues for the quarter increased 14% to $1.0 billion and segment operating income increased 30% to $347 million.
Interactive revenues for the quarter increased by $205 million to $396 million and segment operating results improved from a loss of $76 million to income of $16 million.
Improved operating results for the quarter and year were due to increases in Disney's console games and Japan mobile businesses. The increase in Disney's console games business was primarily due to the fourth quarter release of
Disney Infinity.
Ticker: DIS
Exchange: New York Stock Exchange
Industry: Consumer Services
Number of shares of common stock outstanding: 1,757,279,616
HOLDING PERIOD RETURN %
CURRENT STOCK - PURCHASED STOCK PRICE
PURCHASED STOCK PRICE
CONCLUSION
715.70 - 714.20
714.20
= .2%
BETA:
1.22
Since Disney's Beta is greater than 1,this indicates that the security's price will be more volatile than the market. It's theoretically 22% more volatile than the market.

CAUSE
1.29
GOOGLE
NASDAQ
There are two characteristics that make Disney great: its strong leadership and its iconic brands.
Under the leadership of Bob Iger, Disney has been able to complete three key deals:
Purchase of Pixar in 2006,
Marvel entertainment in 2009
Lucas film in 2012.
Disney would not be the media giant it is today without the guidance of Bob Iger spearheading these acquisitions
I SEE HIGH RETURNS IN DISNEY FUTURE REGARDLESS OF VOLATILITY OF THE MARKET BECAUSE OF TWO BIG DEALS:
Disney reached a deal to sell its theatrical movies to Netflix starting in 2016 that is valued at several hundred million dollars
Disney and BesTV New Media Company Limited in China, signed deal in 2012 for the formation of a new joint venture that will place viewers at the forefront of China's fast-changing digital landscape
OPINION
Largely driven by advertising spending in the current volatile economy. Disney's ABC has recently achieved success with shows like Lost, Grey's Anatomy, and Desperate Housewives. Advertisers are willing to pay more for airtime during shows like these because they attract large numbers of viewers. Similarly, ad prices spike during playoff sports coverage and Superbowl coverage. However due to disappointing sports season, general economic downturn and a couple of flagging TV show ratings Disney's advertising revenues was hurt thus causing volatile
In 2012, Disney’s revenue was a record $42.3 billion, and their profit topped $5.7 billion. At the core of this money making-machine are some of these
iconic
brands The Walt Disney Company,
ESPN, ABC, PIXAR, MARVEL, and LUCASFILM
By reducing costs or increasing revenue, the company increases its profits and drives up stockholders' equity at the same time.
Source: ShareBuilder
- PART 2
Full transcript