Disney’s Q2 earnings helped by Frozen

Comment on this story
IOL pic may7 disney earnings Reuters The water tank of The Walt Disney Company Studios is pictured in Burbank, California. File picture: Mario Anzuoni

Los Angeles -

Disney on Tuesday posted second-quarter earnings that beat Wall Street forecasts, helped by the home video sales of blockbuster movies Frozen and Thor: The Dark World.

Net income in the three months through March jumped 27 percent to $1.92 billion, or $1.08 per share, from $1.51 billion, or 83 cents per share, in the same period a year ago.

Excluding charges for foreign exchange losses and restructuring, adjusted earnings came to $1.11 per share, beating the 96 cents expected by analysts polled by FactSet.

Revenue grew 10 percent to $11.65 billion, trumping the $11.25 billion analysts expected.

The biggest surprise was the strength of the movie studio, which saw revenue increase by 35 percent to $1.8 billion and operating income more than double to $475 million.

“It was a good clean beat from the studio,” said Brett Harriss, an analyst with Gabelli & Company. “All the other divisions were solid.”

Revenue from its TV business rose 4 percent to $5.13 billion and operating income rose 15 percent to $2.13 billion. The company said audience ratings were down at both ESPN and ABC, but it got higher prices for commercial time. Harriss took that as a “bullish” sign for future advertising sales.

Shares of Burbank, California-based The Walt Disney Company rose 28 cents to $81.31 in after-hours trading following the earnings release. Earlier, shares fell 19 cents to close the regular session at $81.03. - Sapa-AP

sign up

Comment Guidelines

  1. Please read our comment guidelines.
  2. Login and register, if you haven’ t already.
  3. Write your comment in the block below and click (Post As)
  4. Has a comment offended you? Hover your mouse over the comment and wait until a small triangle appears on the right-hand side. Click triangle () and select "Flag as inappropriate". Our moderators will take action if need be.

  5. Verified email addresses: All users on Independent Media news sites are now required to have a verified email address before being allowed to comment on articles. You are only required to verify your email address once to have full access to commenting on articles. For more information please read our comment guidelines