In the United States, the most important thing for Simon in the near future is the financial statistics of Daenerys Entertainment Group in the past fiscal year. As a leader in the rapid growth of the U.S. stock market, global capital markets are also paying close attention. Pay attention to this.
Simon returned to Los Angeles from New York and personally followed up and was busy for a while. Daenerys Entertainment Group finally released its full-year financial report for fiscal year 1996 on October 17.
From October 1995 to September 1996, Daenerys Entertainment Group's operating income reached a new high in the four quarters, reaching US$36.1 billion. Compared with the US$27.6 billion revenue data in fiscal year 1995, the annual revenue growth rate remains the same. It maintained an increase of 31%, significantly exceeding the growth rate forecasts of 25% to 30% generally forecast by Wall Street institutions and major financial media.
It is not uncommon for a company to maintain even a doubling of growth during its start-up stage, but as we all know, when the revenue reaches tens of billions of dollars, it becomes almost geometrically difficult to maintain high growth.
After Daenerys Entertainment Group's annual revenue exceeded the US$30 billion mark, its annual revenue growth was still able to maintain more than 30%. Even if it cannot be said to be a miracle, it is not far off.
Therefore, when the financial report was just released, many people's first reaction was to question it.
How can this be
You know, according to the revenue scale of 36.1 billion U.S. dollars, Daenerys Entertainment Group is enough to rank among the top 15 of the top 500 American companies based on revenue statistics, alongside century-old giants such as DuPont, Citigroup, and Texaco.
However, after reading the financial report in detail, it is impossible to refute everything.
Like the core movie business.
It’s just this summer season that has just passed. Compared with previous years, almost every film with a box office of over 100 million this year is inextricably linked to Daenerys Entertainment. This to a large extent represents Daenerys Entertainment’s occupancy The share of the U.S. film industry continues to increase.
A layman watching the fun.
For those in the industry, behind the scenes, what is represented is real interests.
Moreover, many people have further realized that Daenerys Entertainment has maintained a relatively restrained attitude in the past years, but starting from the past year, to be precise, after the successful acquisition of Metropolis ABC Group, Daenerys Entertainment It seems that he no longer conceals his further ambition and edge.
To put it in perspective, Daenerys Entertainment’s film and television entertainment sector revenue in fiscal year 1996 increased by 34% compared to fiscal year 1995, driven by a series of blockbusters and popular dramas. The group average of 31% is three percentage points higher.
Overall, this financial performance, which is beyond the reach of all other major Hollywood studios, is not due to the sudden explosion of one aspect of Daenerys Entertainment's business, but due to this company that spans film, television, and music. This is the result of the super media and entertainment giant in various fields such as games, comics, theme parks, etc. starting to advance in all aspects of its business.
This is actually the scariest thing.
After all, after many companies reach a bottleneck in their development, in order to pursue further growth, they can only develop new businesses. Daenerys Entertainment Group, which is already the leader in Hollywood, even though many people think that its growth has reached its peak bottleneck, does not even need to open new businesses, and its various sectors can still maintain strong growth.
After revenue, there is naturally profit.
Also benefiting from not investing too much money in so-called emerging businesses, Daenerys Entertainment Group's full-year profits reached a new high, reaching US$5.27 billion, a year-on-year increase of 42% from US$3.71 billion last year. , the net profit margin increased to 14.7% from 13.4% last year.
With a profit scale of more than 5 billion US dollars, according to the financial data of major companies that have been released for the same fiscal year, Daenerys Entertainment’s profitability is second only to General Motors, Exxon Mobil, General Electric and Philip Morris, ranking Fifth place, these are also the only 5 companies with net profits exceeding US$5 billion in the current fiscal year.
The market value of Daenerys Entertainment Group exceeded an astonishing high of US$450 billion during the release of the Forbes 400 Richest Americans list in August.
With the release of the full-year financial report on Thursday, October 17, Daenerys Entertainment's stock price rose 3.7% that day, breaking through the US$500 billion mark from US$495.1 billion the previous day, and the market value at the close of the day reached 5134. billion, with a single-day market value increase of US$18.3 billion, and it became the second company in the world to have a market value exceeding US$500 billion after Igret.
That day, a CNN financial reporter commented on Daenerys Entertainment's stock price on his Facebook page, using only one phrase: irrational.
At a time when the new technology wave is raging, the market value of a media and entertainment company that should not be so popular can reach such a high level. It does seem that the market has completely lost its mind.
However, after detailed analysis of various financial data of Daenerys Entertainment Group, the industry has to admit that in comparison, a series of core companies in the Westeros system, such as Cisco, AOL, Ygritte, etc., On the contrary, it is Daenerys Entertainment Group, which is a company with the most solid foundation. While maintaining high growth across all business segments of Daenerys Entertainment, both revenue and profits are substantial.
Not to mention anything else, based on the market value of US$503.4 billion at the closing price that afternoon, the price-to-earnings ratio of Daenerys Entertainment stocks is actually only 96 times.
The P/E ratio is as high as 96 times. It seems that the word 'only' should not be used, but compared with a large number of companies in the new technology field with P/E ratios of hundreds of times, Daenerys Entertainment's bubble content is actually very low.
Even for some companies on the New York Stock Exchange, because the United States is in a bull market, the price-to-earnings ratio of many companies has exceeded 100 times. The current average price-to-earnings ratio of all stocks on the relatively conservative New York Stock Exchange is as high as 51 times. .
The most important factor is actually the growth rate.
Daenerys Entertainment, which is already at the peak of the industry, has not lost its rapid growth in all aspects of its business, whether it is movies, TV, music, or games. The most direct proof of this is that Daenerys Entertainment's annual revenue growth rate this year can still remain above 30%.
Therefore, it is also the most critical factor in driving Daenerys Entertainment to break through 500 billion US dollars.
After all, what the stock market invests in is actually the future. The greater the potential in the future, the higher the stock price will be relatively speaking.
On the other hand, the two companies in the Westeros system, Daenerys Entertainment and Igrit Corporation, not only exceeded the market value of 500 billion U.S. dollars each, but the combined value of the two companies reached 1 trillion U.S. dollars. Moreover, both The company has led the New York Stock Exchange and Nasdaq respectively. This status quo has inevitably caused a lot of controversy again.
One of the most vocal aspects is bubbles.
You know, although the U.S. stock market has been advancing at a rapid pace, there are still countless capitals who choose to go short because they are betting on the turn of the U.S. stock market with a fluke mentality.
Over the past six months, countless hedge funds that chose to short-sell have suffered heavy losses.
Even if these are not directly related to the Westeros system, after all, they are the first ones, and the resentment of huge losses will naturally be vented on the Westeros system.
Secondly, it’s a cliché.
Simon Westeros's personal wealth is really too huge.
It's so huge that it's scary.
So I couldn't help but talk about the need to suppress the growth of Simon Westeros' personal wealth.
These days, Simon's deepest feeling is actually the same thing.
There is too much money, too much to spend.
This is not the idle moaning of the super rich, but a fact.
Like Warren Buffett in original time and space.
Berkshire Hathaway once held hundreds of billions of dollars in cash. Because it was too huge, it had nowhere to go. A certain old man was the stingy type who did not pay dividends to shareholders, so he was pursuing compound interest and In the eyes of Buffett, who is afraid of inflation, this is a big worry.
Now Simon has begun to face this problem.
There is really no money to spend.
Speaking of Daenerys Entertainment, Simon still holds up to 78.3% of the shares of Daenerys Entertainment Group.
According to the profit data of Daenerys Entertainment in 1995, Simon can theoretically receive a profit dividend of 4.1 billion U.S. dollars. Therefore, not to mention the value of Daenerys Entertainment stock itself, not to mention all other aspects of the huge Westeros system. The profits that the company continuously generates are just Daenerys Entertainment's dividends of more than 4 billion US dollars a year. If it were just personal expenses, Simon would need to squander an average of 11 million US dollars a day to spend them all.
What is the concept of $11 million
According to the current market price, this amount of money can buy about 1 ton of gold. Obviously, spending $11 million a day is a real job.
Therefore, no matter how luxurious Simon's life is, his personal expenses will only be a small part.
If we talk about investment, this seems to be the best way to spend money.
However, unless you throw money around without considering the benefits at all, Simon does not have this habit. So, if you want to ensure a rational investment that can increase the value, 4 billion US dollars will also require a large team to rack their brains to find a reasonable place.
What's more, this is just one year's profit, and it's just Daenerys Entertainment.
If the profitability of all enterprises in the entire Westeros system were fully stimulated without considering factors such as tax avoidance or reinvestment, the dividends attributed to the Westeros family alone would reach a scale of one to two billion US dollars every year, and it would still only be At this stage, this number will only grow larger in the future.
Even in ten or twenty years, it is not impossible that annual dividends alone will reach hundreds of billions of dollars.
If it really reaches this level, such a huge amount of money will really have nowhere to go.
The problem is that the entire Westeros system has reached the economic size of a powerful country, but it does not have the financial expenditure needs to feed tens or even hundreds of millions of people. It is inevitable that there will be a situation where you can only get in but not get out.
For a country, if there is a long-term fiscal deficit and it does not have the ability of the United States to use US dollars to transfer it to the world, it will inevitably collapse. Similarly, when a country accumulates large surpluses every year and becomes wealthy to a certain level, the results will not be very good.
Pigs are too fat, but they will make people jealous.
The biggest problem for the Westeros system in the future is that it may continue to accumulate large surpluses. Therefore, Simon must find a suitable solution to this problem.
Malibu, Daenerys Studios.
On the second day after the release of the financial report, after the head-to-head meeting with all the senior executives was over, Nancy Brill, the small female president who was left behind by Simon, couldn't help but joke: "Are you worried about having too much money lately?" Can’t spend all the money?”
Simon was sitting in the center of one side of the large conference table, looking through a document showing the sales data of "Diablo" for the first month since it was launched. Hearing this, he probably understood that this was some gossip that the woman got while chatting with the two Jennys in private. He smiled and asked, "Do you have any good ideas?"
Nancy moved from the side of the conference table to sit directly opposite Simon, shook her head and said: "I can't help it. In my opinion, as the Matthew Effect advantage of the Westeros system becomes more and more obvious, , the similar distress you will face in the future will be more serious, I think this is a very dangerous tendency."
"Um?"
"Obviously," Nancy said, "you have too much. Even if everything is legal, the problem is that you have too much, so much that it scares many people. It's so much that The sense of imbalance among the people at the bottom will only become stronger and stronger.”
Simon stopped and asked with a smile: "So, what do you think the result will be?"
Nancy leaned forward slightly and shook her head again: "I don't know, because there has never been such a precedent in human history. What's more, now is the most civilized stage in human history for thousands of years. , the chance of your personal property being violently taken away is almost non-existent, but some kind of danger is real, so I can’t figure it out.”
Simon still smiled and said, "You already understand."
Nancy wondered: "What?"
"Violence," Simon said: "There is nothing new under the sun. On this planet, thousands of years of history, no matter what type of change, in the final analysis, is because of violence. And, in my opinion, the more so-called civilization , in fact, the more fragile it is, the easier it is to be brutally destroyed.”
Nancy was slightly enlightened: "It seems that you have definitely considered these issues more than once."
"Of course, I also took a lot of substantive actions."
Nancy turned her head and thought for a moment, then asked: "Since you are sure that civilization will be destroyed by barbarism, do you think you can avoid this fate?"
"Why not?" Simon asked, the smile on his face faded slightly, and his temperament turned sharp: "I never said that I planned to stand on the side of civilization."
Nancy was frightened by Simon's sudden change in momentum. After reacting, she couldn't help but tit for tat: "Boss, if you turn to barbarism and use violence, wouldn't it be equivalent to directly giving the excuse against you to others?" ?”
"I turn to barbarism, but I don't necessarily use violence." Simon regained control and showed a relaxed smile again: "Little Nancy, in my mind, barbarism and violence are two concepts. Many times, there is no violence at all. Barbarity and destructive power far outweigh violence."
When Nancy heard the name of a certain 'Little Nancy', she became more motivated and asked, "I don't believe it. What about it?"
"For example..." Simon dragged his voice deliberately. Thinking about what he was doing in France, he thought it would be better not to tell this French girl. He gave it up a little, and waited until Nancy's eyes widened slightly as she became more and more expectant. Said: "...I won't tell you."