Disney buys Anaheim property, rumors of expansion swirl

Parks and resorts revenues were up 4 percent to $4.1 billion, posting a $922 million operating income, a 9-percent increase.

The company’s third quarter included theatrical results from Age of Ultron, the second-highest-grossing domestic film this year, as well as Cinderella, that has taken in nearly $540m (€495m) worldwide. The company also slashed its outlook for cable TV profit.

Diluted earnings per share increased 13% to $1.45 vs. $1.39 estimated by analysts.

Finally, on the interactive side, revenues dropped by 22% to US$208 million and segment operating income declined by US$29 million to break even. Declines in Disney Infinity and console game catalog titles sales were partially offset by the success of Tsum Tsum.

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.

Revenue rose to USD13.10 billion (101.57 billion) from USD12.47 billion (HKD96.69 billion).

Because the company wasn’t able to purchase currency hedges at rates as attractive as it did a year ago, the strong U.S. dollar will lower operating income next fiscal year by about $500 million, she said. As a result company shares have plummeted more than 7% in after-hours trading. Although parks revenue grew, the unit’s revenue came in below forecasts.

“Its deep pipeline of [intellectual property] driving momentum at the Studio and Consumer Products division and premier core media franchises suggest a premium multiple to Media stocks, but ecosystem pressures could drive volatility”, Banks wrote in a note.

Revenue climbed 5 percent to $13.1 billion, a hair short of the $13.2 billion expected by six analysts surveyed by Zacks.

Iger said that changes in multiplatform viewing will benefit ESPN in the future, as it remains a MVPD must-have, viewed in more than 80% of multi-channel homes.

Asked whether alternative distribution models will be more or less profitable than the traditional cable bundle, Iger said the bundle remains the dominant form of television in the home and ESPN is the one brand a media company would want to have in a time of change. The 2014 World Cup of soccer aired on ESPN, setting the network up for a hard year-over-year comparison.

Disney’s profitable cable channel ESPN is reportedly engaged in cost-cutting, after losses in cable subscribers.