Disney Tops Fiscal Q2 Earnings Estimates With Boosts From Cable And Theme Parks

Shares are up slightly in post-market trading after Disney delivered an earnings report with a little of something for everybody. The company generated net income of $1.22B, up 21.3% vs the period last year, on revenues of $9.62B, up 6.1%. The revenue figure was ahead of analyst expectations for $9.56B. Earnings per share, at 58 cents after excluding one-time items from last year, beat forecasts for 55 cents. Growing pay TV fees and ad sales at ESPN helped to drive a 9% increase in revenues at the Media Networks unit, to $4.69B, with operating income up 13% to $1.72B. Per usual, the cable networks stole the show (revenues +12% to $3.17B, and operating income +11% to $1.5B). But the broadcasting side, which includes ABC, benefited from lower programming and production costs (revenues +2% to $1.52B, and operating income +37% to $229M). Consumer spending increased at Disney’s Parks and Resorts, sending revenues +10% to $2.9B with operating income +53% to $222M. The Studio Entertainment unit suffered from the disappointing performance of, and announced write-down forJohn Carter. That sent revenues -12% to $1.18B with an operating loss of $84M vs. a profit last year of $77M. The Consumer Products division had a complicated story, with licensing revenues offsetting a decline in retail sales; it ended up with revenues +8% to $679M and operating income +4% to $679M. Finally, Interactive Media saw a revenue gain of 13% to $179M while cost cuts contributed to a 39% decline in the operating loss to $70M. “We’re incredibly optimistic about our future, given the strength of our core brands,” CEO Bob Iger says. He also noted that The Avengers has “shattered box office records” with its $207.1M in domestic sales this past weekend and $702M global sales to date.

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This article was printed from https://deadline.com/2012/05/disney-tops-fiscal-q2-earnings-estimates-with-boosts-from-cable-and-theme-parks-268484/