Disney revenue comes $100mln below expectations

PanARMENIAN.Net - Disney posted a 5% increase in revenue for the three months to June 27 - but missed expectations for the first time in eight quarters, according to BBC News.

Analysts expected the entertainment group's revenues to be $13.2bn, but the total was $100mln less.

Operating income fell at Disney's theme parks and resorts outside North America due to higher operating costs at Disneyland in both Paris and Hong Kong.

The Asian park also had fewer visitors in the period.

Operating profit at its theme parks rose 9% to $922mln, with a 4% increase in revenue to $4.1bn.

Profits at the company's largest unit, media networks, was up 4% to $2.38bn as cable channels brought in higher fees from TV distributors. The division includes sports channel ESPN, the Disney channels and the ABC broadcast network.

Bob Iger, chairman and chief executive, said the company was very pleased with the third quarter results. Overall, net profit rose 11% to a record $2.48bn.

"The strong results across our many diverse lines of business demonstrate the power of our unparalleled brands, franchises and creative content," he said.

Profits at Disney's movie studio business jumped 15% to $472mln, helped by the success of Avengers: Age of Ultron, starring Scarlett Johansson and Robert Downey Jr.

The Marvel film has taken more than $450mln in the U.S. and $940mln in foreign markets.

Disney bought the studio in 2009 for what is now thought to have been a bargain $4bn.

The company's consumer products division recorded the biggest rise in profits for the quarter - up 27% to $348mln - as merchandise based on Frozen, the Avengers and Star Wars continued to prove popular.