Walt Disney Company 4th Quarter and 2018 Earnings Report

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Walt Disney Company 4th Quarter and 2018 Earnings Report

In yesterday’s press release, the Walt Disney Company released a report summarizing its 4th quarter and fiscal year (ending September 30, 2018) earnings.   Diluted earnings per share (EPS) for the fourth quarter increased 37% to $1.55 from $1.13 in the prior-year quarter. Excluding certain items affecting comparability, EPS for the quarter increased 38% to $1.48 from $1.07 in the prior-year quarter. EPS for the year increased to $8.36 from $5.69 in the prior year. Excluding certain items affecting comparability, EPS for the year increased to $7.08 from $5.70 in the prior year.

Robert Iger, Chairman and Chief Executive Officer of the Walt Disney Company stated in the press release that he was “pleased with our financial performance” which delivered record revenue for 2018. While he also stated that the company is focussed on the “successful completion and integration” of the 21st Century Fox acquisition, and development of the direct-to-consumer business which includes the new Disney streaming service.  Disney shares rose 3.18% to $119.69 each as of 4:20 p.m. ET following the results.

The company as a whole for the fiscal year 2018 saw an increase in a combined revenue of 8%, with operating income up 6%.  The Walt Disney Company receives and reports revenue through its separate divisions:  Media Networks, Park and Resorts, Studio Entertainment, and Consumer Products & Interactive Media.

The Media Networks divisions (including both cable and regular broadcasting) saw a 9% quarterly increase in revenue to $6.0 billion and ending up ahead only 4% in revenue for the year to $1.5 billion.   The decrease was seen in lower advertising revenue, losses from Hulu LLC, BAMTech, and increased contractual rates paid for sports programming.  However, this decrease was partially offset by higher affiliate partner’s revenues and program sales.

Parks and Resorts also saw a 9% quarterly increase in revenue to $5.1 billion and ended up 11% in revenue for the year to $829 million.   Park and Resorts operating income increases were noticeable both in the domestic and international level thanks to improved technology, higher guest spending, and less weather impacting travel such as last year’s hurricane season which negatively affected operating income.  Internationally, the increase was due to higher attendance levels at both Disneyland Paris and the Hong Kong Disneyland Resort.

Studio Entertainment revenues for the quarter showed a  50% increase in revenue to 2.2 billion and ending up 19% in revenue for the year pulling in $596 million.   Studio Entertainment income increased was due to incredible box office performances of “Black Panther”, “Star Wars: The Last Jedi“, “Avengers: Infinity War”, and “Incredibles 2”, lower film cost impairments and higher home entertainment sales.

Consumer Products & Interactive Media division revenues showed a decrease of 8% for the quarter to $1.1 billion ending with a decrease of 10% to $337 million.  The decreases were seen due to licensing and administrative costs at the games business level.

In conjunction with this press release, Disney shareholders were invited to a conference call hosted by the Walt Disney Company.    Shareholders who missed the discussion can find it archived here.

If you are interested in planning a trip to Walt Disney World, Disney Cruise Line or any other Disney Park I’d be happy to help.  I am a travel agent with Pixie Dusted Dreams Travel & Events, the official travel partner of Chip and Company.    I love all things Disney as well as being a former cast member.  My services are free and I offer quick, no-obligation quotes.   You may contact me at jennifer@pixiedusteddreams.com or find me on Facebook.

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