In a recent announcement, Disney has unveiled its decision to change the way it reports quarterly financials, specifically regarding ESPN.
This strategic move, led by CEO Bob Iger, aims to prioritize creativity within Disney’s business model.
Previously, ESPN’s financials were bundled together with other linear TV and streaming assets, or grouped with other TV properties like ABC and Disney cable channels.
This made it challenging to identify the exact financial performance of ESPN.
However, Disney has now positioned ESPN as its own division, bringing clarity to its financial outlook.
The Securities and Exchange Commission (SEC) filing on Wednesday highlighted the declining numbers of ESPN in the first nine months of fiscal year 2023.
Disney releases ESPN’s financials, revealing revenue decline so far in 2023 https://t.co/aqSqbtFZQI pic.twitter.com/AtMBLYAs8s
— Awful Announcing (@awfulannouncing) October 19, 2023
While ESPN generated over $12.5 billion during this period, its revenue has experienced a steady decline.
In the first quarter, ESPN recorded $4.4 billion in revenue, followed by a dip to $4.1 billion in the second quarter. The third quarter saw another drop, with revenues totaling $4.06 billion.
Operating income also suffered, decreasing from approximately $2.1 billion in the same period of 2022 to $1.9 billion.
Earnings for the nine-month period fell to $1.48 billion.
Comparatively, fiscal year 2022 saw revenues of $17.3 billion and an operating profit of $2.7 billion, while in 2021, revenue was $16 billion with an operating profit of $2.7 billion.
Meanwhile, despite declining revenue figures throughout fiscal 2023, the company remains optimistic that its financial performance demonstrates the resilience of its business in the face of shifting TV habits and industry trends.
