Disney’s Q2 Profit Up 11 Percent

The Walt Disney Company has reported an 11-percent jump in profit in its second fiscal quarter, with strong gains in its studio and theme park divisions.

The company earned $2.38 billion for the quarter ended April 1, compared with $2.14 billion in the same period last year. Revenue during the quarter went up by 3 percent to $13.3 billion from $12.9 billion in the previous-year period. Operating income for the quarter was $3.75 billion, compared with $3.36 billion a year ago.

Media networks revenues for the quarter increased 3 percent to $5.9 billion and segment operating income decreased 3 percent to $2.2 billion. Within this segment, cable networks revenues for the quarter were up 3 percent to $4.1 billion and operating income decreased 3 percent to $1.8 billion. The decrease in operating income was due to a decrease at ESPN, partially offset by increases at the Disney Channels and Freeform. The decrease at ESPN was due to higher programming costs, partially offset by affiliate and advertising revenue growth. Broadcasting revenues for the quarter grew 3 percent to $1.9 billion and operating income increased 14 percent to $344 million. The increase in operating income was due to higher program sales income, affiliate revenue growth and a decrease in prime-time marketing costs.

Parks and resorts revenues for the quarter increased 9 percent to $4.3 billion and segment operating income increased 20 percent to $750 million. Operating income growth for the quarter was due to the opening of Shanghai Disney Resort in the third quarter of the prior year and an increase at Disney’s domestic parks and resorts.

Studio entertainment revenues for the quarter decreased 1 percent to $2 billion and segment operating income increased 21 percent to $656 million. Higher operating income was driven by growth in TV and SVOD distribution, lower film cost impairments and an increase in home entertainment results. These increases were partially offset by a lower revenue share from the consumer products and interactive media segment.

“Disney delivered another quarter of double-digit EPS growth, driven by the strong performance of our Studio and Parks and Resorts,” said Robert A. Iger, the chairman and CEO of The Walt Disney Company. “Our continued strong performance is a direct result of our proven strategic focus on great branded content, innovative technology and global growth. We’re pleased with our results in Q2 and remain confident in our ability to continue to deliver significant shareholder value over the long term.”