×
You will be redirected back to your article in seconds

Disney Earnings Top Projections Thanks to ‘Incredibles 2,’ Theme Parks

The box office success of “Incredibles 2” and “Ant-Man and the Wasp,” combined with the popularity of the Walt Disney Company’s theme parks, bolstered quarterly earnings at the Hollywood conglomerate.

Diluted earnings per share for the fourth quarter increased 37% to $1.55, while revenues climbed 12% to $14.3 billion. Net income also improved, jumping 33% to $2.3 billion and smashing Wall Street’s projections.

Analysts had predicted that Disney would post revenues of $13.7 billion and earnings of $1.33 cents per share. It’s a momentous time for the company behind Pixar, Lucasfilm, and Marvel. Disney is wrapping up its $71.3 billion purchase of much of 21st Century Fox’s film and television assets — a pact that is expected to transform the media company into an entertainment leviathan with few equals. At the same time, Disney is preparing to launch a streaming service in late 2019, which it hopes will one day rival Netflix and enable it to connect to cord-cutting consumers who are ditching cable for digital video. To that end, Disney has been winding down its licensing deals as it prepares to debut its service with some of the biggest franchises in its film and television arsenal.

On a call with analysts, Disney chairman Bob Iger didn’t say how the company would integrate Fox, but praised its various divisions and pledged to invest in bolstering properties such as FX and Fox Searchlight. The Disney chief also said he was excited about bringing signature Fox franchises such as “Planet of the Apes,” “Avatar,” and “Kingsman” into the fold.

Iger said the new streaming service will be dubbed Disney+.

“In this era of unprecedented consumer choice, brands matter more than ever,” he said.

Disney’s cable and broadcast arm saw sales climb 9% to nearly $6 billion, while operating income increased 4% to $1.5 billion. Disney’s parks and resorts revenue hit $5.1 billion for the quarter, a 9% improvement that it ascribed to stronger attendance at its Hong Kong and Paris locations. Operating income for the segment jumped 11% to $829 million. Disney’s film studio put up revenue of $2.1 billion, nearly doubling the prior-year quarter, while operating income rose $378 million to $596 million. The studio benefited from summer blockbusters such as “Incredibles 2” and “Ant-Man and the Wasp,” two of the bigger hits of popcorn season.

It wasn’t all good news for Disney. The company invested $400 million in Vice Media, with the hope of reaching its millennial-skewing audience. Instead, buried in the fine print was the news that Disney is writing off $157 million of its investment.

More Biz

  • Discovery CEO David Zaslav Sees 2018

    Discovery CEO David Zaslav Sees 2018 Compensation Soar to $129.4 Million

    Discovery Inc. president-CEO David Zaslav is once again making headlines for an enormous compensation package. Zaslav’s 2018 compensation soared to $129.44 million in 2018, fueled by stock options and grants awarded as the longtime Discovery chief signed a new employment contract last July that takes him through 2023 at the cable programming group. Zaslav received [...]

  • Jonathan Lamy RIAA

    Jonathan Lamy Stepping Down From RIAA

    Jonathan Lamy, the Recording Industry Association of America’s longtime executive VP of communications and marketing, is stepping down from his post after 17 years, he announced today. As he put it in an email to Variety, “I started back in 2002, which means it’s been 17+ years, four different RIAA CEOs, three format changes and [...]

  • Fox Layoffs

    Disney-21st Fox Layoffs: TV Divisions Brace for Deep Cuts

    A second day of layoffs has begun on the Fox lot in the wake of Disney completing its acquisition of 21st Century Fox on Wednesday. Longtime 20th Century Fox Television Distribution president Mark Kaner is among the senior executives who were formally notified with severance details on Friday morning. 21st Century Fox’s international TV sales [...]

  • anthony pellicano

    Hollywood Fixer Anthony Pellicano Released From Federal Prison

    Anthony Pellicano, the Hollywood private eye whose wiretapping case riveted the industry a decade ago, was released from a federal prison on Friday, a prison spokeswoman confirmed. Pellicano was sentenced in 2008 to 15 years, following his conviction on 78 charges of wiretapping, racketeering, conspiracy and wire fraud. He had been in custody since 2003, [...]

  • This image taken from the Twitter

    HBO’s Reaction to Trump’s ‘Game of Thrones’ Campaign

    Everyone wants a piece of the “Game of Thrones” lemon cake. From Bud Light to Red Bull the world of Westeros is open to a lot of brand partnerships, unless you’re using that iconic typeface to push a political agenda. In November of 2018 President Donald Trump unveiled a “Thrones” inspired poster with the words [...]

  • Leaving Neverland HBO

    'Leaving Neverland' Lawsuit Proves to Be a Judicial Hot Potato

    The Michael Jackson estate sued HBO last month for airing the documentary “Leaving Neverland,” which accuses the late King of Pop of serial child sexual abuse. Since then, the case has had a difficult time finding a judge to handle it. Three federal judges have recused themselves in the last week, citing potential financial conflicts [...]

  • Members of the public mourn at

    Guy Oseary’s New Zealand Fundraiser Nears $150,000, Continues Raising Money

    In the wake of the horrific shootings at New Zealand mosques last week that killed some 49 people, Maverick chief Guy Oseary launched a GoFundMe campaign to “support those affected by this tragedy at this very difficult time,” and began it with an $18,000 donation. Boosted by donations from many celebrities — including Amy Schumer, [...]

More From Our Brands

Access exclusive content