Theme Parks, Films Push Disney Profits Higher in Quarter

Walt Disney Co. beat Wall Street forecasts on earnings but just fell short on revenue in the fiscal first quarter. The Burbank entertainment and media giant reported on Tuesday net income of $4.4 billion ($2.91 a share) on revenue of $15.4 billion for the quarter ending Dec. 30. That compares with net income of $2.5 billion ($1.55) in the same period a year earlier. Analysts on average expected earnings of $1.61 on revenue of $15.5 billion, according to Thomson Financial Network. Out of Disney’s four business units, parks and resorts posted the only revenue increase with a bump of 13 percent, going to $5.2 billion from $4.6 billion in the same period a year earlier. Studio entertainment revenue decreased in the quarter by 1 percent to $2.5 billion, while consumer products and interactive media dropped 2 percent. Media networks revenue was flat at $6.2 billion. Studio entertainment revenue was helped by strong theatrical distribution sales from “Thor: Ragnarok” and “Star Wars: The Last Jedi” but offset by lower home entertainment and subscription video on demand sales. Chief Executive Robert Iger said the company’s strategic investments have created meaningful growth over the long term. “We’re excited about what lies ahead, with a robust film slate, the launch of our ESPN direct-to-consumer business, new investments in our theme parks and our pending acquisition of 21st Century Fox,” Iger said in a prepared statement. In December, Disney announced it was buying the media assets of 21st Century Fox, in a deal valued at $52.4 billion. The transaction is expected to close in about a year. The results were released after the market closed. Shares in Disney (DIS) closed Tuesday up $1.47, or more than 1 percent, to $106.17 on the New York Stock Exchange.