If Disney actually reports its revenue around this figure, then it will be a 9.4% increase from last year’s fourth quarter, the revenue of which was $12.38 billion.
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The increase in advertising revenue reflected higher units sold, including the benefit of the extra week of operations, and higher rates.
The report comes after ESPN laid off 300 employees last month.
Studio entertainment revenue came in at $1.78 billion, showing zero growth for the segment, but TV and SVOD, which are also factored into the segment, led to more than double the operating income, at $530 million. And while the company’s chief executive Robert Iger assured analysts on an earnings call last night (5 November) that “there’s nothing wrong with that” he wants the business to evolve with how people are consuming content.
Parks and Resorts increased its revenues by 10% to $4.4 billion, with a 7% increase in operating income to $736 million. Excluding certain items affecting comparability earnings per share for the quarter increased 35% to $1.20 from $0.89 in the prior-year quarter. The business earned $13.10 billion during the quarter, compared to the consensus estimate of $13.24 billion.
Disney is allaying concerns about cord-cutting after reporting better-than-expected revenue in the cable-network division that houses ESPN. As much as its blockbuster movies may get all the glory, the media networks are more important to results. Media Networks contain various broadcast, cable, radio, publishing and digital companies across two offices – the Disney/ABC Television Group and ESPN Inc.
Meanwhile, 21st Century Fox missed expectations for quarterly revenues.
Sony’s PlayStation Vue subscription service, which competes against cable TV with live and on-demand TV streamed over the Internet, will soon include a variety of Disney-owned channels like ESPN, The Disney Channel and the local ABC affiliate. The platform enables viewers to easily search through available programming with an intuitive interface and convenient personal recommendations. “It’s a permanent, fundamental change to the way the business is approached”.
In recent quarters, Disney’s results have been buoyed by sales of merchandise tied in with its hit movie “Frozen”, which was released in late 2013. Calling the service “interactive and intuitive”, Iger said it “definitely speaks to where we’re going as a company”.
Overseas, Hong Kong Disneyland Resort saw decreases inattendance and hotel occupancy.
“Increased volumes at Disneyland Paris were due to higher attendance and occupied room nights”. Interactive revenue slipped 4 percent to $347 million. Disney cited sales of Infinity, a family-focused game, for the increase.
The Walt Disney Company, together with its subsidiaries, is a diversified worldwide entertainment company.
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As for fiscal 2016 the Street sees EPS of $5.61 on revenue of just over $56 billion.
