Disney record Q3 profits, cuts guidance

Walt Disney’s Q3 numbers, for the three months to June 27th, showed growth in both sales and profits but also warned over the future growth of subscriber numbers in its media networks business, which includes the sports network ESPN and ABC.

ESPN has experienced “modest” subscriber losses as viewing habits have shifted to digital platforms, Disney chief executive officer Bob Iger said.

Profits for the entertainment giant rose 11 per cent to a record quarterly figure of $2.48 billion (€2.27) while revenues climbed 5 per cent to $13.1 billion during the period.

The company said its movie studio boosted earnings once again, with the debut of Avengers: Age of Ultron proving the continued strength of the Marvel superhero brand.

It also cited higher operating costs at the Paris park and at Disneyland in California alongside lower customer numbers at its Hong Kong resort. Operating profits for the division still rose 9 per cent to $922 million. Sales of consumer products, including Star Wars, Marvel and Frozen merchandise, rose 27 per cent on a year earlier.

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