The quarterly profits of Walt Disney Co (N:DIS), exceeded the expectations of analysts. It was due to the increased spending of the visitors at its world recognized parks and also improvements in the company’s TV network business.
Now, the Walt Disney share rose 2%, getting to a record high of $ 113.30 in early trading. At the closing time on Monday, the company gained 38% in the past year.
The positive trend of the company shares was also due to the sales of special toys and merchandise related to an animated film called “Frozen”. Another upcoming blockbuster animated movie – “The Avengers: Age of Ultron” is expected to increase the profits in the current quarter.
The revenue at theme parks got higher with 6%, getting to $ 3.76 billion, increasing the unit’s operating income 24% as ticket prices and hotel room rates increased and the visitors has also spent more on food, drinks and merchandise. The children will always have the need to be closer to their favorite heroes, so the demand for Walt Disney products and services seems to have no limits.
The Walt Disney’s media networks business, which incorporates sports TV brand ESPN, the Disney channels and ABC, had a 13% rise, the revenue getting to $ 5.81 billion due to higher ad sales and affiliate fees. However, product costs and higher programming at ESPN pushed the unit’s operating income down 2%.
The revenue at the studio business fell 6%, getting to $ 1.69 billion, while sales at the consumer products division rose 10%. The film studio released the now becoming hit – Bug Hero 6, but this was not enough to repeat the phenomenal success of the last year animated film Frozen.
The total revenue in the second quarter, which ended on March 28, rose 7 % to $ 12.46 billion, surpassing the analysts’ estimation of $ 12.25 billion. The net income which can be attributed to Walt Disney of $ 1.23 per share is also higher than the analysts’ expectation - $ 1.11 per share.