Hollywood Hunter

Chapter 279: First half of the financial report

When the 10 movie plans to make the whole Hollywood boil, Daenerys Entertainment's mid-year financial audit quietly ended.

In addition to other tasks, Simon spent three days studying the dozens of pages of financial reports collected by the company's financial department.

In general, Daenerys Entertainment’s revenue for the first half of the year is still focused on the four films of the end of last year: "Screaming", "Steel Magnolia", "Death Poetry Society" and "Rain Man".

From January 1 to June 30, in six months, the domestic box office portion of the four movies continued to receive US$263 million, and Daenerys Entertainment’s score from this portion of the box office became US$121 million. The reason why the box office share ratio is lower than the average of 55% is mainly due to the step-by-step plan for theater screenings. After a movie is released, the box office share ratio gradually decreases.

Overseas, the total revenue from the four films was US$356 million, of which "Screaming" was US$95.15 million, "Steel Magnolia" was US$12.37 million, "Death Poetry Society" was US$86.32 million, and "Rain Man" was US$95.15 million. "Is 163.65 million US dollars.

This box office data will increase in the second half of the year, but the potential is already small.

Compared with the data in the original time and space, the overseas box office of the four films has shrunk significantly. Except for the huge gap between overseas and local box office, "Steel Magnolia" is because the subject matter overseas audience is too small, the box office of several other films The shrinking is mainly due to the lack of overseas distribution capabilities of Daenerys Entertainment and the fact that many overseas ticket warehouse countries have not yet opened the film market.

Moreover, even if most overseas box office countries opened up the film market in this era, they still implemented various restrictions on Hollywood films in order to protect the domestic film industry’s low scores, high taxes, and delayed schedules. Daenerys Entertainment's average score from overseas box offices The proportion is only 33%,

In addition, for some overseas ticket warehouses that are too small or have stricter policy restrictions, Daenerys Entertainment can only perform a one-time sale. Although the box office is still included in the total overseas box office data, it does not participate in the sharing.

In Simon's memory, this situation will quickly improve after the 1990s.

Calculated, the total overseas box office revenue contributed by these four films to Daenerys Entertainment is 116 million US dollars.

As for the new films released this year, as of June 30, the six films in the first half of the year, such as "Thunderbolt Blue Angel" and "Metropolis", had accumulated a total of 123 million US dollars. The "Sixth Sense of Supernatural" released on June 30 was excluded. In addition to this statistic, the six new films accumulatively divided into revenue of 73 million US dollars.

In the home entertainment business, when Harry Meets Sally, released at the end of last year, the number of video tapes sold in the first half of the year was 2.93 million boxes. At a video tape unit price of US$29.9, sales reached US$87.6 million.

In the basic agreement between the film company and the various labor unions, although 80% of the video tape revenue is counted as a cost, and only 20% is shared, in fact, the gross profit obtained by the studio from the sale of each video tape can generally reach the sales. From 40% to 50% of the unit price, the gross profit ratio of "When Harry Meets Sally" is a hot new movie.

Therefore, just the release of the videotape of the movie "When Harry Meets Sally" brought Daenerys Entertainment more than $46 million in gross profit.

Including some other fragmentary project income, comprehensive statistics show that Daenerys Entertainment’s own operating income attributable to Daenerys Entertainment’s own operating income of nearly US$900 million in the box office and video tapes generated by Daenerys Entertainment’s film business in the first half of the year was 3.95 One hundred million U.S. dollars.

Behind the huge revenue, it also means huge expenditure.

In the first half of the year, Daenerys Entertainment had more than ten films in various stages of official production. Among them, the budget cost of "Batman" reached 50 million US dollars, and the other "Bodyguard", "Sixth Sense of Supernatural" and "Buck Projects such as "Uncle" and "Scream 2" also require large expenditures.

At the same time, Daenerys Entertainment has also invested a large amount of publicity expenses in the distribution of local and overseas movies.

Finally, considering a series of large expenditures such as the construction of Malibu Daenerys Studios, the establishment of many overseas branches, the repayment of some due loans, and the equally important tax factors that need to be undertaken by the company as a whole, Dany The net profit of Lisi Entertainment's film business in the first half of the year was only US$51.19 million, and the net profit margin was less than 13%.

TV business.

Compared with movies, the TV business in the first half of the year was a bit lackluster. Daenerys TV's revenue focus is still on four reality shows. Since the beginning of this year, the TV department has successively signed production contracts for three new dramas with TV networks, but last year’s two dramas were also cut due to low ratings after the spring season ended.

Based on such statistics, Daenerys Television Company currently operates exactly 10 TV projects, of which six are TV series and four are reality shows.

Because the revenue and profit figures of the reality show with the bulk of the revenue are basically determined, in the first half of the year, Daenerys' entertainment TV business total revenue was 232 million US dollars. Also after apportioning large sums of expenses, the net profit scale of the TV department is 36.82 million U.S. dollars, and the net profit margin is also only 16%, which is not too high.

Comic business.

Although the launch of the "Batman" project has attracted the attention of the industry to Marvel Entertainment, the comics company still maintained a low-key operation in the first half of the year. The revenue of 39.71 million US dollars and the profit of 2.26 million US dollars contributed to Daenerys Entertainment The overall impact is small.

However, in the financial report for the first half of the year, there is not no bright spot, that is, the consumer goods department led by Nancy Brill.

After several adjustments, Daenerys Entertainment Consumer Products Department is currently mainly responsible for the development of peripheral products of the company's series of film and television projects, the distribution of soundtracks, and part of the advertising business.

Of course, the sponsored advertising operation of several reality shows such as "Who Will Be a Millionaire" is still solely responsible for Daenerys Television Company, which belongs to the advertising department of Daenerys Television Company, and the consumer goods department only undertakes a few reality shows. Peripheral product development, the so-called advertising business is mainly the cooperation of implanted advertisements for movies and TV series produced by Daenerys Entertainment.

The energetic little woman led the investment in Blockbuster in the first half of the year, established Daenerys Analysis Company, and launched the Blizzard Studio. It seemed a bit of a mess, but the consumer goods department did not fall behind at all.

Through the peripheral product operations of the two key projects of "Scream" and "Beverly's Wife", the peripheral product business of the consumer goods department opened up in one fell swoop, and two projects aimed at different consumer groups successfully established the consumer goods department Two targeted retail channels, one for teenagers and the other for housewives, these two groups happen to be the two groups with the greatest consumption potential.

After the successful peripheral operations of "Scream and Scream" and "Beverly's Wife", peripheral product development of the company's other films has been implemented more smoothly.

In terms of acoustic records, although the original soundtracks such as "Death Poetry Club" and "Rain Man" launched by the record department are far from the level of "Bodyguard" soundtrack albums, they have achieved fairly good sales. The sales data of the original soundtrack of "Rain Man" has exceeded 5 million as of June 30, which is very rare for pure music records.

In the final advertising business, in order to avoid the blind placement of advertisements in the company's film and television dramas, which would cause audience disgust, Simon was very cautious in this regard.

Nancy Brill did not blindly pursue inappropriate advertising placement. However, because Daenerys Entertainment’s series of films last year were so successful, there are too many companies that want to cooperate with the company’s brand, and the prices are very generous. , Under the premise of implementing Simon’s requirement to avoid the proliferation of advertisements, Nancy Brill still passed the brand cooperation of "Batman", "Angel and Goddess", "Pretty Girl in the Moonlight", "Human and Ghost" and other projects. The company has brought a generous income.

As a result, last year there was not much input in the consumer goods sector. In the first six months of the first half of the year, its revenue exceeded US$200 million in one fell swoop, reaching 207 million.

However, because Nancy Brill pursues more long-term business development rather than short-term profit management ideas, a large amount of money has been invested in product production, channel construction, and promotion and marketing. The company has even been unconsciously Zhong has a toy factory in Rhode Island on the east coast, and the consumer goods department also needs to share other expenses of the company, so the profit margin is lower, only 9.5%, and the net profit is 19.71 million US dollars.

In the end, overall, Daenerys Entertainment's total revenue for the first two quarters of this year was US$873 million and net income was US$110.78 million.

Compared to the huge gains Cersei Capital just obtained from the Japanese financial market, Daenerys Entertainment's net profit of $110 million seems a little insignificant. However, Simon has always been clear that this company is his foundation, and financial market opportunities cannot be available every year. As he becomes more noticeable, it becomes more and more difficult to profit in the financial market. Big. The investment in the field of science and technology will generally not see the final results until ten or twenty years later.

Daenerys Entertainment's lower profit scale is mainly due to the needs of Daenerys Entertainment's rapid expansion.

Moreover, the net profit of 110 million US dollars in half a year is actually not low. This level of profitability in this era can easily squeeze into the "Forbes" North American 500 list of top 100 companies.

More than 50 kilometers from the coastline of Los Angeles, a luxury yacht with a length of more than 60 meters is quietly anchored on the sea.

The time is August 6th, Sunday.

This weekend, Simon did not work continuously, but once again chose to rest.

However, this time it was not just a rest.

James Rebold came from New York in the last few days to discuss company matters and at the same time help Simon introduce some people, to be precise, some politicians.

The location is arranged on this yacht.

Simon does not intend to use illegal methods in the process of expanding political contacts. Everything is done in accordance with the "Federal Election Act" and other public rules. However, he also hopes that this matter can be carried out as low-key as possible. At least, he does not intend to appear in the newspaper media with a certain politician publicly.

In two days, including David Dingkins, who is making the final preparations for the New York mayoral campaign at the end of the year, Simon met with a total of six politicians, all of whom Westeros has confirmed that it will provide financial support. In addition to David Dingkins, the other five people are a California Senate, two California House of Representatives, one Congressman from New York State, and one Congressman from California.

These people are also Democrats. Since he decided to stand in line, Simon does not intend to bet on both sides in the short term.

Moreover, Simon did not select those celebrity politicians with a high degree of attention, and the few selected were basically after careful investigations, they were well capable and did not identify potential stocks in the background. The election of congressmen in the United States appears to be very frequent, but in fact, the chances of re-election of congressmen are very high. Some ‘evergreen’ politicians can even be re-elected for more than ten terms.

Simon does not seek for these people to be able to bring him back immediately.

The first batch of ‘investments’ in the early stages were mainly to build up contacts and prevent Daenerys Entertainment from being smeared at the top of the federation once something happened.

In the long-term vision, it’s good for these people to support the expansion of Westeros after three to five years. After ten or eight years, if someone can enter the core of federal power and still stand on the side of Westeros. , That's a big profit.

In the evening, Simon finally ended the last meeting of the weekend.

He personally sent the New York State Senator away by helicopter. Simon and James walked to the nearest table and chairs on the top terrace of the yacht next to the tarmac.

As the sun sets, the burning clouds on the horizon cover the horizon, rendering a magnificent view of the sea and sky.

Jennifer personally delivered a pot of coffee to the two of them, but went to sit down at another table and chairs next to him, and quietly lowered his head to read a magazine.

James glanced at his daughter, sighed in his heart, and continued to say to Simon: "The other candidate lists, I will take the time to send you the information, and there is also a consulting company that provides election investigations and campaign plans for parties. Shortly after its establishment, Schrapp Consulting is headquartered in Greenwich, Connecticut, near New York. Although it has just been established, the founder of this company, Joseph Schrapp and his family have very deep political experience and connections. I think This is a good opportunity, Simon, we can set up a special fund to provide long-term funding to this company."

It is impossible for political investment to seek direct monetary returns. The establishment of a non-profit fund can also convert capital investment into tax avoidance capital to the greatest extent.

"I'll take the time to look at the information first," Simon did not nod immediately, and said again: "In addition, this time I may transfer 50 million US dollars from Daenerys Entertainment to you. We will be sure of overseas funds within one year. Not needed."

"US$50 million is already very good. I also recently reviewed the company’s finances. The technology companies we invested in in the first half of the year probably contributed US$37 million in dividends, which is a bit lower than last year. The main reason is that we are heavily invested by Microsoft. Several companies did not implement dividends, but, counting the original accumulation, the money is enough to maintain the company's operations." James said, remembering one thing, and said: "In addition, the remaining three companies can reduce their holdings at any time. Among the companies, AMD’s stock price has been falling recently, and the market value is now 50% lower than when we bought it two years ago. I don’t think there is any need to stay."

AMD, naturally, is Intel's "little enemy".

I still can't help it.

I remember that when I bought AMD two years ago, the market value of this company was about US$900 million, with a total investment of about US$45 million. Simon did not pay attention to this matter recently. Listening to James at this time, AMD's market value may have fallen to $600 million, compared to Intel's direct market value of $6 billion...

Well, it can't be compared.

However, think about AMD's ability to survive until more than two decades, and now there is no need to cut the meat and leave the market. Maybe when it comes back, the loss will be made up.

Simon smiled and shook his head, and said, "We are not nervous about our current funds, let's keep holding them."

James nodded in agreement.

After finishing the business, I chatted about Daenerys Entertainment's recent big news.

The two sat on the terrace for half an hour. The helicopter flew back. Simon, James and Jennifer boarded the helicopter and returned to Malibu.

Back on the shore, the Rebald father and daughter refused Simon's invitation to join the Warner Bros. party in the evening, and rushed to have dinner with Jennifer's uncle George Norman's family.

Simon rested for a while at his home on the west side of Dome Point, and then set off to downtown Los Angeles.

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