Walt Disney Q3 net up 24% to $1.83 bn

MUMBAI: The Walt Disney Company?s net profit for the third quarter ended 30 June rose 24 per cent to $1.83 billion over the year ago period on the back of success of films like The Avengers and Brave.

Total revenues during the quarter stood at $11.08 billion registering a growth of 4 per cent over the corresponding fiscal?s $10.67 billion. The media conglomerate?s operating income grew 18 per cent to $3.23 million from $2.73 billion in the same quarter of previous fiscal.

"We had a phenomenal third quarter, delivering the largest quarterly earnings in the history of our company.Earnings per share were up 31 per cent over last year, driven by growth in every one of our businesses," said The Walt Disney Company Chairman and CEO Robert A. Iger.

Media Networks revenues for the quarter increased 3 per cent to $5.1 billion and segment operating income increased 2 per cent to $2.1 billion. Operating income at Cable Networks increased $14 million to $1.9 billion for the quarter due to growth at the domestic Disney Channels and ABC Family, partially offset by a decrease at ESPN.

Higher operating income at the domestic Disney Channels was due to increased affiliate revenue from contractual rate increases, while the increase at ABC Family reflected lower marketing and sales costs due to fewer series premieres. The decrease at ESPN was driven by lower recognition of deferred affiliate fees related to annual programming commitments.

However, the benefits of contractual rate increases and subscriber growth on affiliate fees along with higher advertising revenue more than offset increased programming and production costs at ESPN.

Broadcasting vertical?s operating income increased $18 million to $268 million due to higher affiliate and royalty revenue and lower programming and production costs, partially offset by lower Network advertising revenues. Advertising revenues at the Network decreased modestly as lower ratings were partially offset by higher rates.

Parks and Resorts Parks and Resorts revenues for the quarter increased 9 per cent to $3.4 billion and segment operating income increased 21 per cent to $630 million. Results for the quarter were driven by increases at Tokyo Disney Resort, Disney Cruise Line and the domestic parks and resorts.

Studio Entertainment Studio Entertainment revenues were essentially flat at $1.6 billion and segment operating income increased $264 million to $313 million. Higher operating income was primarily due to increases in worldwide theatrical results and worldwide television distribution, partially offset by a decrease in worldwide home entertainment.

Higher worldwide theatrical results reflected the performance of the current quarter releases including Marvel?s The Avengers and Brave compared to Pirates of the Caribbean: On Stranger Tides and Cars 2 in the prior-year quarter. The increase in worldwide television was driven by higher sales in international markets due to stronger performing titles available in the current quarter.

The decrease in worldwide home entertainment was primarily due to a decline in unit sales in the current quarter. Significant current quarter titles included John Carter and The Muppets while the prior-year quarter included Tron: Legacy, Tangled and Gnomeo & Juliet.

Consumer Products Consumer Products revenues increased 8 per cent to $742 million and segment operating income increased 35 per cent to $209 million. Higher operating income was primarily due to increases at Merchandise Licensing and at our retail business. Interactive revenue for the quarter decreased 22 per cent to $196 million and segment operating results improved from a loss of $86 million in the prior-year quarter to a loss of $42 million in the current quarter. Operating results were driven by improved performance from our games and online businesses.