Disney announced Thursday that due to expansion at pay TV operations ESPN plus Disney Channel as well as higher payments by theme park visitors, its 4th quarter net income was up by 30%.
Just like other media organizations, advertising revenue was higher. However, a cautious outlook was maintained the Walt Disney Co. In spite of the record-breaking profit, analysts kept an eye on a possible slowdown. During the quarter under review, revenue increased to $10.43 billion against expectation of $10.37 billion by analysts. Adjusted Earnings per share, excluding one-time items, stood at 59 cents against analysts’ expectation of 54 cents.
The media giant reduced losses at its interactive division. In spite of lower revenue in home entertainment Walt Disney Co. recorded growth. Due to the spread of the Disney Channel overseas, its pay TV sector revenue increased to $3.47 billion. Additionally, 7 percent higher ad revenue coupled with 8 percent higher fees paid by distributors were contributing factors for 8% growth of ESPN.
Even though the conglomerate scaled back discounts, attendance at its U.S. theme parks increased by 1%. Higher merchandise and food sales in addition to higher hotel rates and ticket prices were the main reasons for the growth.Previous Post » Cisco, Merck & Co and Walt Disney Jumps as Dow Jones Gains 112.85 Points