The Walt Disney Company’s third-quarter results, falling short of analyst expectations, showed revenues up 7 percent to $15.2 billion, delivering a net profit of $2.9 billion, a 23-percent increase.
“We’re pleased with our results in the quarter, including a double-digit increase in earnings per share, and excited about the opportunities ahead for continued growth,” said Robert A. Iger, chairman and CEO. “Having earned the overwhelming support of shareholders, we are more enthusiastic about the 21st Century Fox acquisition than ever, and confident in our ability to fully leverage these assets along with our own incredible brands, franchises and businesses to drive significant value across the entire company.”
At the media networks, revenues were up by 5 percent to $6.2 billion, while segment operating income was flat at $1.8 billion. Revenues at the cable networks grew slightly to $4.2 billion, but operating income fell by 5 percent to $1.4 billion. Lower operating income was due to a loss at BAMTech and a decrease at Freeform, partially offset by an increase at ESPN. Broadcasting revenues gained 11 percent to $2 billion, with operating income of $361 million, a 43-percent gain, driven by higher program sales, affiliate revenue growth and increased network advertising revenue, offset by higher programming costs, largely as a result of American Idol and Roseanne.
Studio entertainment revenues gained 20 percent to $2.9 billion, with operating income up 11 percent to $708 million. The segment was boosted by increases in domestic theatrical and worldwide TV/SVOD distribution results.
Parks and resorts contributed revenues of $5.2 billion, a 6-percent gain, with operating income up 15 percent to $1.3 billion.
Consumer products and interactive took a hit, with revenues down 8 percent to $1 billion and operating income falling 10 percent to $324 million.