World Trade

Walt Disney’s Sports Biz: A Bit Like a Roller Coaster, Says Bernstein!

Hold onto your hats, folks! Walt Disney (Tip your cap to NYSE:DIS) just pulled back the curtain on its latest financial numbers, and boy, did it get the market’s tongues wagging!

So here’s the scoop: Barclays gurus point out that Mickey Mouse’s house split its sports section away from the showbiz. In layman’s terms? They’re playing their sports and movie cards separately. Barclays scratched their heads a bit, saying, “While the details are still kinda foggy, that 14.4% margin they reported for 2023 (let’s forget about those ESPN+ hiccups) is a tad underwhelming.”

But here’s the twist! Disney’s been shelling out big bucks for Cricket rights in India, especially after a tiff messed up their broadcast plans for a bit. Ouch!

Peel back a few layers, exclude Star Sports, and the rest of the ESPN gang, and bam! ESPN’s local business is strutting around with a 20.4% margin this year, compared to a breezier 26.1% in 2022. Barclays threw in their two cents, noting that even with ESPN+ doing better, there’s still some drag in their earnings compared to yesteryears.

Over at Bernstein, the number-crunchers had a lightbulb moment. Disney’s been funneling 56% of the old TV revenue into sports. But the return? A modest 11% over three-quarters. While that may sound like small potatoes, they reckon it’s all part of the game when you’re dealing with the pricey world of sports rights.

They put it bluntly: the sports segment’s earnings are a little… well, “wobbly.” Like riding the teacups at Disneyland – fun but unpredictable!

The Bernstein folks dropped the mic with, “ESPN’s in a pickle. They don’t own the core content, and with the price tag of sports rights going through the roof, Disney’s got to prove ESPN is the go-to spot for all things sports.” Game on, Disney!

For all you eager beavers wanting more juicy details, keep those eyes peeled and ears open. The market’s always full of surprises! 🎢🎩🏀📊🎥

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