Walt Disney Q3 profit meets forecasts
media networks unit that houses ESPN, the Disney Channels and ABC. The division posted operating income of $1.6 billion, a 7 percent gain from a year earlier. ESPN brought in higher rates from cable operators and reduced its marketing costs although advertising income fell, Disney said.
Increased programming costs at online video service Hulu dragged on results for the ABC broadcasting unit, Rasulo said. The quarter was slightly negative for ABC and would have ended slightly higher without Hulu, he said.
The theme parks division gained from passengers spending more time on Disney cruise ships plus higher attendance at parks in Hong Kong, California and Paris, the company said. Operating income climbed 18 percent to $497 million during the quarter.
Operating income at Disney's film studio fell 32 percent, in part because the box office performance of animated film Brave did not match the previous year's release of Cars 2. Disney shares dropped 2 percent in after-hours trading to $49. Earlier, shares closed at $50.04, down 4 cents, on the New York Stock Exchange. They are up 33 percent this year.
Morningstar analyst Michael Corty said Disney produced another solid quarter particularly with its cable networks business, though he noted that revenue was below what some analysts expected. Overall revenue rose 3 percent in the quarter to $10.8 billion.
Disney has so many good things going for it that any weakness in the stock would be a buying opportunity, he said.
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