Record earnings for Walt Disney thanks to the worldwide success of the latest Star Wars episode, The Force Awakens.
In the first quarter of the fiscal year, Walt Disney greatly beat market expectations, mainly thanks to the extraordinary earnings of the latest film in the Star Wars saga, "Star Wars: The Force Awakens", which mitigated the poor performance of the channel sporty espn.
In the three months ended last January 2, equivalent to the first fiscal quarter for the group, the profits reached 2,88 billion dollars or $1,73 per share from $1,27 billion or 1,27 cents per share in the same quarter of 2014.
Net of extraordinary items, earnings per share up 28% at $1,63, better than estimates for $1,45. The entertainment giant reported the highest earnings in its history. Revenues grew to $15,24 billion from $13,39 billion, just below the consensus of $14,75 billion.
Specifically, the parks and resorts division saw revenues reach $4,28 billion, an increase of 9% over the prior year, while earnings climbed 22% to $981 million. The consumer products division recorded revenues of 1,91 billion (+8%).
But the big leap was made by the division of film studios thanks to the new Star Wars film, the first produced since Disney bought Lucasfilm. Revenue rose 46% to $2,72 billion, while operating profits grew 86% to $1 billion.
The only sore point is ESPN and cable TV in general: operating profits have seen a drop of 5% "precisely because of a decrease in ESPN", Disney said. While pending the accounts, after the markets closed, Walt Disney shares gained 0,22% to $92,32 on the New York Stock Exchange. After the market, it first gained ground and then sold it with discounts of up to 4%. Despite the excellent performances of Star Wars, it was ESPN and the cable TV segment that disappointed. In the last three months, the group's shares have lost 21%.
