The recently released Walt Disney Company's quarterly profits exceeded the expectations of Wall Street, mostly thanks to the performance of their big budget movies like "Captain America," the rise in attendance of their theme parks all over the world, and merchandise sales of their movie related items, especially the animated hit "Frozen."
The company posted a net profit of $2.2 billion in the quarter, which was a 22 percent increase from their quarterly profit this time last year, which led to the increase in earnings per share, which rose to a record $1.28, which was higher than the $1.17 that was forecast. The increase in the company's quarterly profits led to an increase in their shares in after hours trading, rising from $86.75 after closing, to $86.90.
Bob Iger, the Chief Executive Officer, said that the company's earnings per share for the first three quarters of this year are higher than any full fiscal year in the company's history. He also stated that the company's strategy of building strong franchises and brands continues to create a great value across the company.
It wasn't all good news for Disney, while the operating income from their media networks division was $2.3 billion, there was a 7 percent decline from last year, mostly due to a decrease from ESPN, which faced new competition last year from Fox Sports, the sale of ESPN UK, and the higher programming and production costs of the FIFA World Cup, and Major League Baseball.
The movie studio on the other hand did very well, with an operating income that jumped up to $411 million, thanks to the performance of their summer blockbusters "Captain America: The Winter Soldier," "Maleficent," and the video and digital sales from "Frozen."
The operating income of their theme parks also increased by 23 percent this year, and earned $848 million. The sales were mostly driven by an increase in the attendance and spending at their domestic parks. Since acquiring Lucas Films and the rights to the "Star Wars" franchise from George Lucas, they plan to create a greater "Star Wars" presence at their parks, and they are scheduled to announce more details next year.
The operating income from their consumer products saw a rise of 25 percent in the fiscal quarter, and made $273 million, thanks to the licensing and sale of products from "Frozen," "Planes," "Spider-man," and the Disney Channel. The company also received an operating income of $29 million from their interactive gaming unit.
When asked if he feels that the company needs to acquire more companies to increase their scale, Iger said he feels that the company can continue to grow from the properties that they own, and that he was glad with what they have.