Disney announced their quarterly earnings this afternoon. Disney increased diluted earnings per share by 34% compared to the prior-year quarter.
Commenting on the better than expected performance Bob Iger said, “We had an incredibly strong first quarter, delivering a 32% increase in adjusted earnings per share and double-digit increases in operating income in all business segments. These results reflect the strength of our unprecedented portfolio of brands, a constant focus on creativity and innovation, and the continued success of our long-term strategy”
- Cable Networks experience growth partly due to higher income from A&E Television Networks due to lower programming and marketing costs and higher advertising revenue. No word if any of this has to do with the Duck Dynasty controversy that plagued the network during the quarter.
- Parks and Resorts experience growth. However, the increase in visitors was partly offset by continued spending of MyMagic+. Capital expenditures at domestic sites was $215 million in the quarter. It is unknown how much of this was spent on MyMagic+ at Walt Disney World.
- The studios had a huge quarter, growing income by 75% due to the success of Frozen and Thor: The Dark World. Revenues only increased by 23% implying that the studio has reduced spending and is running a more efficient operation.
- Disney Consumer Products income grew 24% to $430 million with strong sales of Planes, Disney Junior, and Monsters University merchandise. Planes merchandise success is a big part of the reason that a sequel is hitting theaters this summer (and home video this holiday season).
- Operating income at Disney Interactive grew by $46 million to $55 million due to Disney Infinity. Many were concerned about the division after the news of layoffs at the division came out, but it appears that the news was not related to this quarter’s performance.
The full earnings release is available here.
Bob Iger and Jay Rasulo will be participating in a conference call to discuss the earnings announcement at Disney.com/Investors. Laughingplace.com will provide a recap of any interesting information that comes from the call.