Disney Profit Rises

BURBANK: Net income for The Walt Disney Company’s fiscal 2015 increased 12 percent to a record $8.4 billion, with revenues up 7 percent to a record $52.5 billion.

“We had a strong quarter, with adjusted EPS up 35 percent, completing our fifth consecutive year of record performance,” said Robert A. Iger, the chairman and CEO of The Walt Disney Company. “In fiscal 2015 we delivered the highest revenue, net income and adjusted EPS in the company’s history, reflecting the power of our great brands and franchises, the quality of our creative content, and our relentless innovation to maximize value from emerging technologies.”

For the quarter ended October 3, net income was up 7 percent to $1.6 billion, while revenue was up 9 percent to $13.5 billion.

Media Networks revenues for the quarter increased 12 percent to $5.8 billion, and segment operating income increased 27 percent to $1.8 billion. Operating income at the cable networks increased 30 percent to $1.7 billion, thanks to an increase at ESPN and, to a lesser extent, A&E Television Networks and the Disney Channels. Operating income at the broadcasting segment was essentially flat at $164 million for the quarter. Growth in advertising and affiliate revenue was offset by higher programming costs, lower operating income from program sales, an equity loss from Hulu and higher marketing costs for the fall season launch.

Parks and Resorts revenues for the quarter increased 10 percent to $4.4 billion, and segment operating income increased 7 percent to $738 million. Operating income growth for the quarter was due to an increase at Disney’s domestic operations, partially offset by a decrease at its international operations.

Studio Entertainment revenues for the quarter were essentially flat at $1.8 billion, and segment operating income increased to $530 million, up considerably from the $254 million delivered in the year-ago period. Operating income growth was due to increased TV/SVOD distribution results, lower film cost impairments, improved theatrical results and a higher revenue share with the consumer products segment. These increases were partially offset by lower home entertainment results.

Consumer Products revenues for the quarter increased 11 percent to $1.2 billion, and segment operating income increased 10 percent to $416 million. Higher operating income was driven by earned licensing revenue growth, partially offset by the impact from foreign currency fluctuation.

Interactive revenues for the quarter decreased by 4 percent to $347 million, and segment operating income increased 72 percent to $31 million.