The Walt Disney Company’s Second Quarter Earnings for 2018 Fiscal Year

Walt Disney Company

The Walt Disney Company reported its Second Quarter Earnings with the close of the fiscal quarter on March 31, 2018.

Overall, it was a successful quarter for the company with share prices increasing. Bob Iger stated, “Driven by strong results in our parks and resorts and studio businesses, our Q2 performance reflects our continued ability to drive significant shareholder value”. He went on to share that he believes the company is set up for continued growth and success with recent projects such as Black Panther and Avengers: Infinity War, the restructuring and reorganization of the company itself, and the DTC platforms being created for consumers.

The following chart shows the second quarter and six-month results for fiscal 2018 and 2017 (in millions, except per share amount).

Walt Disney Company's 2nd Quarter Earnings

The Walt Disney Company saw increases in revenue across the board from all departments including Media Networks, Parks and Resorts, Studio Entertainment and Consumer Products & Interactive Media.

Media Networks

  • The largest earner this quarter was Media Networks, which reigned in $6.138 billion in revenue
  • Cable Networks revenue increased 5% to 4.25 billion
  • Lower operating income for Cable Networks was primarily due to decreases at Freefom and ESPN and a loss at BAMTech
  • Broadcasting revenues and operating income did not see much change due to contractual rate increases that were offset by a decline in advertising revenue
  • The decrease to Equity in the income of investees was due to higher losses from Hulu, partially offset by higher operating costs at A&E Television Network

Parks and Resorts

  • Parks and Resorts saw 13% increase from 2017 and closed the quarter off with a whopping $4.879 billion in revenue
  • Operating income increased to $1.0 billion, a 27% growth
  • Growth was partially due to a shift in timing of the Easter holiday
  • Parks and resorts have primarily seen an increase in guest spending and attendance as well as higher sponsorship revenue which was partially offset by increased costs
  • The increase in guest spending is due mostly to an increase in prices including tickets, hotel room rates, food and beverages and merchandise
  • Increase costs were mostly attributed to new attractions, higher technology spending, labor and inflation

Studio Entertainment

  • The most significant growth was seen by Studio Entertainment with a 21% increase from last year, closing the quarter with $2.454 billion in revenue
  • Operating income growth was due to increase in theatrical distribution, home entertainment and TV/SVOD distribution
  • Theatrical distribution was so successful due to Black Panther
  • Home Entertainment growth can be attributed to the release of Star Wars: The Last Jedi, Thor: Raganok, and Coco

Consumer Products & Interactive Media

  • Increased 2% to $1.1 billion
  • The increase was due to an increased income from licensing due to higher minimum guarantee shortfall recognition and increased sponsorship revenue

 

 

For more information you can find a full copy of the report here.

 

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