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DIS Walt Disney Co

120.90
-0.08 (-0.07%)
Pre Market
Last Updated: 10:53:07
Delayed by 15 minutes
Share Name Share Symbol Market Type
Walt Disney Co NYSE:DIS NYSE Common Stock
  Price Change % Change Share Price High Price Low Price Open Price Shares Traded Last Trade
  -0.08 -0.07% 120.90 7,546 10:53:07

Disney Profits Boosted by 'Avengers', 'Frozen' -- Update

04/08/2015 10:24pm

Dow Jones News


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By Tess Stynes 

Walt Disney Co. said its earnings rose a better-than-expected 11% during the quarter ended in June, boosted in part because of the latest "Avengers" film as well as the continued popularity of merchandise related to the "Frozen" film.

Shares, though, fell 2.1% to $119.15 in after-hours trading as the company's revenue fell short of analyst expectations amid slower growth at its media networks and parks segments.

Revenue rose 5% at media networks and 4% at the parks segment in the third quarter, both representing smaller increases than the first two quarters.

Profits at Disney's cable networks, its largest business, increased 7% to $2.08 billion on gains in program sales and higher affiliate revenue, driven by contractual rate increases. Broadcast operating income decreased 15% to $300 million, mostly the result of higher programming costs, lower advertising revenue and higher labor-related costs.

At the company's parks and resorts segment, profits rose 9% to $922 million as an increase in Disney's domestic operations was partially offset by a decrease overseas.

In all, for the period ended June 27, Disney reported a total profit of $2.48 billion, or $1.45 a share, up from $2.25 billion, or $1.28 a share, a year earlier. Revenue increased 5% to $13.1 billion.

Analysts polled by Thomson Reuters expected per-share profit of $1.42 and revenue of $13.23 billion.

Disney's film studio, which gets a cut of revenue from products based on its movies, posted profit growth of 15% to $472 million. Revenue rose 13% to $2 billion, reflecting the strong performance of Marvel's "Avengers: Age of Ultron" in the latest period, compared with Marvel's "Captain America: The Winter Soldier" in the year-earlier period.

In recent quarters, Disney's results have been buoyed by sales of merchandise tied in with its hit movie "Frozen," which was released in late 2013. Plans for a "Frozen Ever After" next year at Epcot Center in Orlando, Fla., highlight Disney's strategy of focusing on key franchises that live on for many years as theme-park rides, toys, videogames, television shows, pajamas and just about anything else that helps keeps revenue rolling in.

The company is expecting to get a similar boost, both at the box office and on store shelves, with "Star Wars: The Force Awakens," which will be released later this year.

In the latest period, consumer products revenue grew 6% to $954 million, while operating profit grew 27%. Merchandise licensing revenue growth reflected the performance of merchandise based on "Frozen," "Avengers" and "Star Wars," partially offset by lower revenues from Spider-Man merchandise.

Write to Tess Stynes at tess.stynes@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires


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