The Walt Disney Company has posted a 78 percent increase in profit for the first quarter, thanks in part to a federal tax cut.
Disney reported net income of $4.42 billion, boosted by a $1.6 billion one-time tax benefit from the new federal income tax legislation. Revenues for the quarter increased 4 percent to $15.35 billion.
Media networks revenues for the quarter was flat at $6.2 billion and segment operating income decreased 12 percent to $1.2 billion. Cable networks revenues for the quarter increased 1 percent to $4.5 billion and operating income decreased 1 percent to $900 million. A loss at BAMTech and decline at ESPN were partially offset by growth at the Disney Channels and Freeform. Broadcasting revenues for the quarter decreased 3 percent to $1.8 billion and operating income decreased 25 percent to $285 million. The decrease in operating income was due to lower advertising revenue, higher production cost write-downs and a decline in program sales income, partially offset by affiliate revenue growth due to rate increases.
Revenues from parks and resorts for the quarter was up 13 percent to $5.2 billion and segment operating income increased 21 percent to $1.3 billion.
Studio entertainment revenues were relatively flat at $2.5 billion and segment operating income decreased 2 percent to $829 million. An increase in theatrical distribution results was more than offset by decreases in home entertainment and TV/SVOD distribution results as well as lower income from consumer products and interactive media segment revenue share. Consumer products and interactive media revenues for the quarter decreased 2 percent to $1.5 billion and segment operating income decreased 4 percent to $617 million.
“The strategic investments we’ve made have driven meaningful growth over the long term, and we remain confident in our ability to continue to deliver significant shareholder value,” said Robert Iger, chairman and CEO of The Walt Disney Company. “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.”