Disney Profits Up 27 Percent with Lift from Frozen

BURBANK: Net income for The Walt Disney Company in the second quarter was up 27 percent to $1.9 billion, boosted by the continued strong performance of its blockbuster animated movie Frozen.

Quarterly revenue totaled $11.6 billion, up 10 percent from a year ago. A particularly bright spot was the Studio Entertainment unit, which releases Disney movies, with revenue up 35 percent to $1.8 billion and segment operating income increasing to $475 million from $118 million. Higher operating income was due to increases in domestic home entertainment, international theatrical and television and subscription video-on-demand distribution results.

Media Networks revenues for the quarter increased 4 percent to $5.1 billion and segment operating income increased 15 percent to $2.1 billion. Operating income at Cable Networks increased $250 million to $2 billion for the quarter due to growth at ESPN and the domestic Disney Channels and higher equity income from A+E Networks. Higher operating income at ESPN was due to increased affiliate revenues and decreased programming and production costs, partially offset by lower advertising revenue. Growth at the domestic Disney Channels was due to higher affiliate revenues led by the settlement of an affiliate contract dispute and contractual rate increases, partially offset by increased programming costs. Higher equity income from AETN was due to advertising and affiliate revenue growth, partially offset by higher programming costs. Operating income at Broadcasting increased $21 million to $159 million for the quarter due to higher affiliate revenues and lower general, administrative and marketing expenses, partially offset by decreased network prime-time ad revenue.

Parks and Resorts revenues for the quarter increased 8 percent to $3.6 billion and segment operating income increased 19 percent to $457 million. Consumer Products revenues for the quarter increased 16 percent to $885 million and segment operating income increased 37 percent to $274 million. Higher operating income was due to increases in the Merchandise Licensing and Retail businesses. Interactive revenues for the quarter increased 38 percent to $268 million and segment operating results improved from a loss of $54 million to income of $14 million.

“We’re extremely pleased with our results this quarter, delivering double-digit increases in operating income across all of our businesses and the highest quarterly earnings per share in the history of the company,” said Robert A. Iger, the chairman and CEO of The Walt Disney Company. “Our continued strong performance reflects the strength of our brands, the quality of our content, and our unique ability to leverage creative success across the entire company to drive value.”