ST Alpha - "Even those are teeny compared to what Disney (the network) and ESPN bring in profit." (Reading a Post)

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In response to "sure but investors will expect merchandising and other licencing to go up also. -- nm" by zork

Even those are teeny compared to what Disney (the network) and ESPN bring in profit.

Posted by Inigo (aka Inigo) Aug 6 '14, 11:04

Kinda crazy. I agree that investors will buy because of the headline, but Disney makes such ridiculous amounts of money that an extra couple hundred million profit from Star Wars won't really love the needle much in terms of overall profit.

Responses:

To wit, Disney's quarterly revenue was $12.5 billion. -- nm - David Aug 6, 11:15 6
- If they each brought in (a big if but) $1B, that's hardly insignicant. -- nm - zork Aug 6, 11:19 5
  - I presume you mean in box office. Keep in mind that billion dollar films are lucky to have profit margins in the range of 25%. - David Aug 6, 11:21 4
    - FYI, from their earnings report, Media Networks and Parks and Resorts accounted for about 81% of profit for the quarter. - Inigo Aug 6, 11:36 2
      - Interesting. I take it that it's because of inventory levels that need to be kept. -- nm - zork Aug 6, 11:40 1
        
        Not sure. Maybe they just don't make as much off each doll/figurine as we think? - Inigo Aug 6, 11:45
    - You guys keep switching back and forth between revenue and profit. And I already mentioned that the factors you refer to will get a boost. -- nm - zork Aug 6, 11:26

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Even those are teeny compared to what Disney (the network) and ESPN bring in profit.

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