Disney Q4 net income rises 7% on gains at TV networks, theme parks
The Walt Disney Co., the media giant that owns ABC and ESPN, said Thursday its fiscal fourth quarter net income rose 7% to $1.6 billion as revenue gains at its TV networks and theme parks helped offset its film unit's sluggish performance.
Company-wide revenue rose 9% to $13.5 billion.
Diluted earnings per share, after adjusting for some items, totaled $1.20, above analysts’ estimate of $1.17.
“We had a strong quarter,” said Disney CEO Robert Iger in a statement. “In Fiscal 2015 we delivered the highest revenue, net income and adjusted (earnings per share) in the company’s history, reflecting the power of our great brands and franchises.”
The media networks unit, which operates Disney’s broadcast and cable TV networks, reported a 12% revenue gain to $5.8 billion.
Affiliate and advertising revenues at ESPN, its largest cable network, were higher but the dominant sports network’s rising programming costs continue to eat away its operating income, it said. Advertising sales gains reflected more expensive time slots sold but were “partially offset by lower ratings,” it said.
Parks and resorts revenues, mostly from its Disney theme parks in Orlando, Anaheim, Calif., Hong Kong and Paris, increased 10% to $4.4 billion. Guest spending and attendance at the domestic parks rose as Disney was able to charge higher hotel room rates and ticket prices for admissions and cruise line sailings.
Its international operations reported lower attendance and occupied room nights at Hong Kong Disneyland Resort and higher operating costs at Disneyland Paris.
Studio Entertainment revenues remained flat at $1.8 billion. Theatrical distribution revenues were lower, Disney said, because the year-ago quarter included some popular titles, including Planes: Fire and Rescue and The Hundred-Foot Journey. "The current year included no Disney feature animation or DreamWorks titles in release," Disney noted.
Consumer Products revenues rose 11% to $1.2 billion, driven by licensing revenue from Star Wars Classic, Avengers and Frozen merchandise.
Interactive revenues, including video gaming sales, fell by $15 million to $347 million.