Parks & Resorts Boost Disney Q3 Earnings
The Walt Disney Company reported quarterly results for its third fiscal quarter with earnings per share increased to $1.03 from $1.01 during the same last year, but revenue missed the mark overall at $11.58 billion, down from Wall Street expectations of $11.64 billion, Variety reports.
“We are pleased with the results we delivered in the third quarter,” said Disney CEO Robert A. Iger in a statement. “We are confident that our strategy of creating high-quality branded content positions us well for the future.”
Studio entertainment dipped two percent from last year to $1.59 billion in sales with Iron Man 3, ESPN and Monsters University helping to offset pre-release marketing costs for The Lone Ranger.
Box office underperformer The Lone Ranger, which was released July 3 and won’t impact the studio until next quarter, could cost the studio as much as $190 million in Q4.
Media Networks was one of the few highlights of Tuesday’s earnings report, with revenues increased five percent to $5.4 billion and segment operating income increased eight percent $2.3 billion.
Parks and Resorts also increased seven percent to $3.7 billion and segment operating income increased nine percent to $689 million. Overall, attendance at Disney’s domestic theme parks rose three percent and set new attendance records during the company’s third quarter.
Disney said it hasn’t seen “any backlash” from recent price increases at its theme parks. In fact, California Adventure is continuing to see strong attendance levels after the opening of “Carsland” last year. “California Adventure is lapping the success of a year ago, a bit,” Iger said.
While Walt Disney World will add an Avatar-themed park at Animal Kingdom, no opening date has yet been announced. “It will be a couple years out, at least,” Iger said.
Disney’s stock rose $1.03 to close at $67.05, gaining nearly 1.6 percent on Tuesday but shares lost that ground in after hours trading, when the stock fell $1.05 to close at $66.
Source: Walt Disney Studios