Frozen continues to lift Disney

disney-frozenWalt Disney has credited the continuing success of its Frozen brand and an increase in visitors to its theme parks for an “incredibly strong quarter”.

Boosted by continued Frozen DVD and merchandise sales, net income rose 19 per cent to $2.2 billion in the quarter, with revenues up 9 per cent to $13.4 billion, both better than forecast.

Operating income at the company’s cable networks division, which is dominated by ESPN but also includes properties like the Disney Channel, declined 2 percent, to $1.26 billion. The decline is likely to feed investor concern about higher sports programming costs. It was the third quarter in a row that more expensive contracts – this time with the NFL – hampered ESPN’s financial results. ESPN also saw higher administrative costs in the quarter and lower ad revenue.

Sales in its studio entertainment division also fell – down 2 per cent. Disney said the fall reflected the weaker performance of its Big Hero 6 film compared to Frozen‘s strong performance in the same quarter a year ago.

You must be logged in to post a comment Login