Strong Q1 for Disney

BURBANK: The Walt Disney Company reported first quarter revenues of $12.3 billion, 9 percent higher than the year-ago period, with net income gaining 33 percent to $1.8 billion.

“We had an incredibly strong first quarter, delivering a 32-percent increase in adjusted earnings per share and double-digit increases in operating income in all business segments,” said Robert A. Iger, chairman and CEO of The Walt Disney Company. “These results reflect the strength of our unprecedented portfolio of brands, a constant focus on creativity and innovation, and the continued success of our long-term strategy.”

At the largest segment, Media Networks, revenues were up 4 percent to $5.3 billion. The cable networks brought in $3.8 billion, 6 percent over the same period last year, posting an operating income that was 34 percent higher at $1.3 billion. The gains were attributed to growth at ESPN, higher equity income from A+E Networks and some improvement at the U.S. Disney Channels. Broadcasting revenues dipped 2 percent to $1.5 billion and operating income took a 32 percent hit, falling to $178 million, as a result of higher programming costs, lower program sales and reduced ad revenues. Overall operating income for the media networks was $1.5 billion, reflecting a 20 percent gain.

The Studio Entertainment segment saw revenues rise 23 percent to $1.9 billion, with operating income soaring 75 percent to $409 million. Strong theatrical performers in the period included Frozen and Thor: The Dark World. The company also saw increases in U.S. home entertainment and television/subscription video on demand distribution.

Consumer products revenues were $1.1 billion in the period, an 11 percent gain, due to the inclusion of Lucasfilm and higher revenues from the performance of Planes, Disney Junior and Monsters University merchandise. Operating income rose 24 percent to $430 million.

The Parks and Resorts business showed an operating income of $671 million on revenues that were up 6 percent to $3.6 billion. Interactive revenues gained 38 percent to $403 million, with an operating income of $44 million.