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Walt Disney (NYSE:DIS) on Wednesday revealed that its ESPN cable sports channel made nearly $12.6B in revenue in the nine months ended July 1, 2023, in a detailed look at the business as the company prepares to bring more reporting transparency to its segments.
Earlier this year in February, Disney (DIS) said it would start announcing the financial results of its media and entertainment businesses in two segments, effective FQ4 2023. The numbers had been so far reported under one unit named “Disney Media and Entertainment Distribution.”
As per the new reporting structure, Disney (DIS) will break out figures separately under segments titled “Entertainment” and “Sports,” with the former encompassing the company’s non-sports focused film, television and streaming businesses. The latter will cover ESPN and DIS’ tie-up with Indian streaming channel Hotstar.
Disney (DIS) in a regulatory filing on Wednesday provided recast figures as per the new structure. According to the data, ESPN brought in revenue of $12.56B for the nine months ended July 1, 2023, with operating income for the same period coming in at $1.89B. For the quarter ended July 1, 2023, ESPN saw revenue of $4.06B and operating income of $1.05B.
In comparison, the new “Entertainment” division brought in revenue of $31.11B for the nine months ended July 1, 2023, though operating income was just $1.21B, reflecting the challenges of the yet-to-be-profitable Disney+ streaming service.
For Disney’s (DIS) year ended October 1, 2022, ESPN brought in revenue of $16.07B and operating income of $2.89B. Looking at the figures for the new “Entertainment” division in the same period, revenue was $39.57B but operating income was only $2.13B.
The recast figures shows just how much of a cash-cow ESPN is for Disney (DIS). However, the company over the past 12 months has seen weakness in its traditional television brands, including the iconic sports channel. There have also been reports that DIS was looking at selling ESPN.
Walt Disney (DIS) stock was marginally higher by 0.5% to $85.13 after hours.