Earnings: Disney Surprises With 39 Percent Profit in Q2; MVNOs Slow Down Income


Concerns that it might be time for a dip at The Walt Disney Company (DIS) were unfounded as the company turned in a 39 percent increase in profit and a 12 percent increase in revenues. Diluted earnings per share rose 36 percent — $0.53 compared to $0.39 in the year-ago quarter. Three of the four segments — media networks, parks and resorts, studio entertainment — showed double-digit revenue growth; the exception was consumer products with 6 percent. Within media networks, cable revenue was up 12 percent and broadcasting 6 percent; operating income at cable rose 15 percent driven mostly by ESPN increases in affiliate revenue.
From the fine print: “increased costs associated with ESPN branded mobile phone services” and the new higher MLB agreement partially offset ESPN’s gains. The cost of investing in MVNOs showed up again in broadcast, where operating income dropped 28 percent on the launch of Disney Mobile, higher production costs at ABC and the higher number of pilots.
Earnings | Webcast (replay not available yet) | Transcript (SeekingAlpha.com)

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