Studio entertainment revenue down 2% from last year
The Walt Disney Company reported quarterly results for its third fiscal quarter with earnings per share increased to $1.03 from $1.01 during the same last year but revenue missed the mark overall at $11.58 billion, down from Wall Street expectations of $11.64 billion.
“We are pleased with the results we delivered in the third quarter,” said Disney CEO Robert A. Iger in a statement. “We are confident that our strategy of creating high-quality branded content positions us well for the future.”
Studio entertainment dipped 2% from last year to $1.59 billion in sales with “Iron Man 3,” ESPN and “Monsters University” helping offset “The Lone Ranger’s” pre-released marketing costs.
Box office underperformer “The Lone Ranger,” which was released July 3 and won’t impact the studio until next quarter, could cost the studio as much as $190 million in Q4.
Parks and Resorts also increased 7% to $3.7 billion and segment operating income increased 9% to $689 million.
The theme parks have especially performed strongly for Disney, with Rasulo saying that investments to upgrade Walt Disney World and Disneyland “continue to pay off.” Overall, attendance at its domestic parks rose 3% and set new attendance records during the company’s third quarter.
Disney said it hasn’t seen “any backlash” from recent price increases at its theme parks. In fact, California Adventure is continuing to see strong attendance levels after the opening of “Carsland” last year. “California Adventure is lapping the success of a year ago, a bit,” Iger said.
While Walt Disney World will add an “Avatar”-themed park at Animal Kingdom, no opening date has yet been announced. “It will be a couple years out, at least,” Iger said.
Additional plans to upgrade Disneyland will also be announced over the next couple months, Iger added.
Disney’s stock rose $1.03 to close at $67.05, gaining nearly 1.6% on Tuesday but shares lost that ground in after hours trading, when the stock fell $1.05 to close at $66.