The Walt Disney Company; the happiest boardroom on earth.
The Los Angeles Times reports the Disney Co. reported a 22 percent increase in net income for its fiscal third quarter, buoyed by strong performances from its film studio and theme parks division. The Burbank-based company posted a 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.
Disney’s parks and resorts, studio, consumer products and interactive divisions all 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.
Disney’s shares ended at $86.75 per, down 49 cents yesterday. In after-hours training, the shares are slightly higher.
The biggest reasons for Disney’s performance are the film studio and theme parks division. 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 percent to $1.807 billion. Disney cites the success of the hit animated film Frozen and the international theatrical success of Malificent and Captain America 2: The Winter Soldier as the reasons for the increase.
Disney’s parks and resorts unit posted operating income of $848 million, a gain of 23 percent 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 percent to $902 million.
Deadline also cites the performance of Guardians Of The Galaxy as another reason. Disney reached the $2B for its fifth consecutive year and in record time, besting 2013 by about three weeks. Deadline reports that the Disney Co. has surpassed the $2 Billion dollar mark internationally.
Disney will expect to continue its success through the end of the year. Guardians Of The Galaxy is still going strong, and they expect good things from the film The Hundred Foot Journey starring Helen Mirren.
“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.”