Disney Q3 profit jumps 9% to $1.3 bn
The Walt Disney Company said on Wednesday its third-quarter profits rose nearly 9%, thanks to revenue growth at ESPN and strong results from its theme park near Paris, where the weak US dollar was helpful.
By Agencies |
LOS ANGELES : The Walt Disney Company said on Wednesday its third-quarter profits rose nearly 9%, thanks to revenue growth at ESPN and strong results from its theme park near Paris, where the weak US dollar was helpful.
But the company also warned the advertising market was weakening in the current quarter due to a struggling US economy, threatening its ESPN and ABC networks.
The family entertainment company and owner of Pixar Animation Studios reported net profit grew to $1.28 bn in the quarter ending in June, up from $1.18 bn a year ago. Revenue grew 2% to $9.24 bn.
After subtracting one-time gains from the reacquisition of its Disney Stores in May and the sale of movies.com, earnings per share from continuing operations were 62 cents, up from 58 cents a year ago.
The results narrowly beat analysts expectations. Analysts forecast 1 per cent revenue growth to $9.14 bn and earnings per share of 61 cents, according to a survey by Thomson Financial.
Edward Jones analyst Robin Diedrich said the company barely beat Wall Street expectations on per-share earnings partly because it repurchased $1 billion in shares in the quarter, taking 32 million shares off the market.
There are about 1.9 bn shares outstanding. ���It was not a blowout as we���ve seen in recent quarters but still solid,��� Diedrich said.
���Possibly, investors were expecting even more.��� Disney���s media networks revenues grew 8%to $4.12 bn, as ad revenue at ESPN grew more than 10%, the company said.
But the company also warned the advertising market was weakening in the current quarter due to a struggling US economy, threatening its ESPN and ABC networks.
The family entertainment company and owner of Pixar Animation Studios reported net profit grew to $1.28 bn in the quarter ending in June, up from $1.18 bn a year ago. Revenue grew 2% to $9.24 bn.
After subtracting one-time gains from the reacquisition of its Disney Stores in May and the sale of movies.com, earnings per share from continuing operations were 62 cents, up from 58 cents a year ago.
The results narrowly beat analysts expectations. Analysts forecast 1 per cent revenue growth to $9.14 bn and earnings per share of 61 cents, according to a survey by Thomson Financial.
Edward Jones analyst Robin Diedrich said the company barely beat Wall Street expectations on per-share earnings partly because it repurchased $1 billion in shares in the quarter, taking 32 million shares off the market.
ADVERTISEMENT
There are about 1.9 bn shares outstanding. ���It was not a blowout as we���ve seen in recent quarters but still solid,��� Diedrich said.
���Possibly, investors were expecting even more.��� Disney���s media networks revenues grew 8%to $4.12 bn, as ad revenue at ESPN grew more than 10%, the company said.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
