Media Networks segment’s second-quarter revenue

The Walt Disney Company (DIS) reported flat revenue of ~$5.5 billion in its Media Networks segment in the second quarter of fiscal 2019, which ended on March 30, 2019. The segment’s operating income fell 3% YoY (year-over-year) in the quarter.

A 2% YoY rise in Disney’s cable networks business offset by a 2% fall in its broadcasting business led to the flat revenue growth in its Media Networks segment. Within the segment, the cable networks business’s operating income rose 2% YoY, whereas the broadcasting business’s operating income fell 29% YoY compared to its rise of 40% YoY in the first quarter of fiscal 2019.

How Did Disney’s Media Network Segment Perform in Q2?

Ready to put your morning scrolling to use? Sign up for Bagels & Stox, our witty take on the top market and investment news straight to your inbox! Whether you’re a serious investor or just want to be informed, Bagels & Stox will be your favorite email.

Cable networks

The increase in the cable networks business’s operating income was driven by higher affiliate revenue at ESPN on the back of contractual rate increases partially offset by a fall in subscriber numbers. ESPN’s subscriber numbers have fallen due to cord cutting as streaming giants such as Netflix, Amazon Prime, Hulu, and Alphabet’s YouTube continue to attract subscribers to their streaming services by offering premium original content.

Higher programming costs and a decrease in advertising revenue offset the growth in the cable networks business. A rise in the contractual rate for key sports programming and a change in the mix of CFP (College Football Playoff) games added to these increased costs. Advertising revenue also fell due to lower rates and a shift in the mix of CFP games offset by higher impressions.

Broadcasting

Operating income in the broadcasting business fell 29% YoY in the quarter due to a fall in advertising revenue, lower program sales, and higher programming costs offset by higher affiliate revenue growth from the contractual rate increase.

The fall in program sales was due to lower sales of Grey’s Anatomy and Criminal Minds offset by higher sales of How to Get Away with Murder. Advertising revenue also fell in the quarter due to lower network viewership partially offset by higher network rates.

Latest articles

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.

Nio Inc. (NIO) has disrupted the automotive space since 2014 but only made waves in the market since its IPO. Investors have suffered numerous setbacks.