Revenues, Profit Slip at Disney

The Walt Disney Company’s fourth-quarter revenues fell by 3 percent to $12.8 billion, with profit down slightly at $1.7 billion.

For the fiscal year, meanwhile, revenues were essentially flat at $55.1 billion, while net income dropped by 4 percent to $9 billion.

Announcing the results, Robert A. Iger, chairman and CEO, noted, “No other entertainment company is better equipped to navigate the ever-evolving media landscape, thanks to our unparalleled collection of brands and franchises and our ability to leverage IP across our entire company. We look forward to launching our first direct-to-consumer streaming service in the new year, and we will continue to invest for the future and take the smart risks required to deliver shareholder value.”

Media networks revenues in the quarter fell by 3 percent to $5.5 billion, with operating income down 12 percent to $1.5 billion. For the full year, revenues were $23.5 billion, down by 1 percent, delivering an operating income of $6.9 billion, reflecting an 11-percent decrease. Disney cited rate increases for sports programming, lower ad revenues and higher losses from its investments in BAMTech and Hulu, but affiliate revenues did rise. The company’s cable networks brought in Q4 revenues of $3.9 billion, while broadcasting delivered $1.5 billion, down 11 percent on the prior-year quarter.

Studio entertainment also took a hit, with revenues falling 21 percent in the quarter to $1.4 billion and 11 percent in the year to $8.4 billion. Operating income for the segment dropped by 43 percent in Q4 to $218 million and by 13 percent in fiscal 2017 to $2.3 billion. Consumer products and interactive revenues fell 6 percent in the quarter to $1.2 billion and 13 percent in the year to $4.8 billion.

Parks and resorts fared well, delivering quarterly and full-year revenue gains to $4.7 billion and $18.4 billion, respectively.