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Walt Disney earnings surge 22% on strength of studio, theme parks

Walt Disney Co. headquarters in Burbank.
(Reed Saxon / Associated Press)
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Walt Disney Co. reported a 22% increase in net income for its fiscal third quarter, buoyed by the strong performance of its film studio and theme parks division.

The Burbank company posted net income of $2.25 billion, or $1.28 a share, for the quarter that ended June 28, up from $1.85 billion, or $1.01, a year earlier. Revenue rose 8% to $12.47 billion.

Disney, the world’s largest entertainment and media company, beat the expectations of analysts, who had predicted earnings of $1.17 a share, according to investment research firm Zacks.

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“Our strategy of building strong brands and franchises continues to create great value across our company,” Robert A. Iger, Disney’s chairman and chief executive, said in a statement. “We’re extremely pleased with these results.”

Disney’s parks and resorts, studio, consumer products and interactive divisions each experienced double-digit operating income growth on a year-over-year basis.

The company’s media networks division, which includes ESPN and ABC, posted operating income of $2.3 billion, flat from a year earlier.

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Disney shares, which fell 49 cents to $86.75 in regular trading Tuesday, were up slightly in after-hours trading.

Disney’s movie studio posted operating income of $411 million in its third quarter, up from $201 million a year earlier. Revenue was up 14% to $1.807 billion. Disney attributed the improvement in part to the worldwide home entertainment performance of the hit animated film “Frozen,” and the international theatrical performance of movies “Captain America 2: The Winter Soldier” and “Maleficent.”

Although the media networks division saw its operating income dip slightly, its revenue rose 3% to $5.51 billion. Within the division, the cable group’s operating income was down 7% in part because of higher programming and production costs at ESPN. The broadcasting group’s operating income was up 66% -- partly due to an increase in affiliate fees.

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Disney’s interactive division reported operating income of $29 million, compared with a loss of $58 million a year earlier. Revenue was up 45% to $266 million. Disney attributed the division’s success to higher video game sales, which were partly driven by “Disney Infinity,” an action-adventure game released last year.

Disney’s parks and resorts unit posted operating income of $848 million, a gain of 23% from a year earlier. Disney said the strong performance was partly because of growth at its domestic properties. That offset a decrease in operating income at Disneyland Paris, which experienced decreased attendance and higher operating costs.

The company’s consumer products division posted operating income of $273 million, compared with $219 million a year earlier. Revenue was up 16% to $902 million.

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