Walt Disney's Q2 net income up 32 % Y-o-Y
09 May 2013
The Walt Disney Company reported for the second quarter net income at $1.51 billion, up 32 per cent on the same quarter last year, thanks to strong performance of its media networks, movie studio and theme parks.
Revenue was up 10 per cent to $10.55 billion for the period ending 30 March, 2013, while the The Media Networks group posted an operating income of $1.9 billion, up 8 per cent.
Revenue surged 6 per cent to $5 billion. Operating income at the cable networks grew 15-per cent, to $1.7 billion, with revenues that rose 9 per cent, to $3.5 billion.
The broadcast segment though took a something of a hit. Operating income was down 40 per cent, to $138 million, primarily due to high prime-time programming costs and a dip in ad revenue at ABC. Revenue for broadcasting fell 2 per cent, to $1.5 billion.
The company's Studio Entertainment group saw a strong quarter, on revenue that rose 13 per cent to $1.3 billion while operating income rose by $202 million, to $118 million, aided by the strong theatrical performance of Oz the Great and Powerful and Wreck-it Ralph.
The Parks and Resorts segment was another bright spot with operating income increasing 73 per cent from last year, to $383 million, and revenues 14 per cent higher at $3.3 billion.
Consumer Products revenues increased 12 per cent to $763 million, with a segment operating income of $200 million, an increase of 35-per cent. The Interactive division reported an operating loss at $54 million, which came as an improvement on the year-ago figures, showing a loss of $70 million. Revenue was up 8 per cent to $194 million.
New features at Disney parks, such as the Cars Land attraction based on Pixar movies, helped the division deliver 73 per cent higher profit with the fastest revenue growth for the company at 14 per cent. The gains were spurred by higher attendance and guest spending, along with the addition of the Disney Fantasy cruise ship, according to the company.
According to some analysts, the Disney machine was churning out the benefits which came from bold capital investments in the difficult phase from 2008 to 2011.
According to Disney, operating profit at the namesake theme parks rose to $383 million. Revenue stood at $3.3 billion. The company had spent $9.45 billion on the expansion and improvement of its parks, resorts and other properties over the past three years, according to financial reports. First-half outlays were down 47 per cent to $1.12 billion, according to the company.
