Walt Disney Co (NYSE:DIS) released the earnings results for the first quarter of its fiscal 2016 after closing bell tonight, posting adjusted earnings of $1.63 per share, compared to the consensus of $1.45 per share, and revenue of $15.24 billion, against Wall Street’s estimate of $14.79 billion. Reported earnings were $1.73 per share.
Star Wars drives Walt Disney’s strong earnings
Walt Disney Co (NYSE:DIS) said its Media Networks segment recorded $6.332 billion in revenue, marking an 8% year over year increase on the back of higher advertising and affiliate revenues. Units sold and higher ad rates, plus increases in affiliate contract rates benefited the segment, while a decline in subscribers and currency headwinds partially offset the benefits.
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“Driven by the phenomenal success of Star Wars, we delivered the highest quarterly earnings in the history of our Company, marking our 10th consecutive quarter of double-digit EPS growth,” Walt Disney Chairman and CEO Robert A. Iger said in a statement. “We’re very pleased with our results, which continue to validate our strategic focus and investments in brands and franchises to drive long-term growth across the entire Company.”
Walt Disney’s results by segment
Driven by the phenomenal success of Star Wars, we delivered the highest quarterly earnings in the history of our Company, marking our 10th consecutive quarter of double-digit EPS growth,” said Robert A. Iger, Chairman and Chief Executive Officer, The Walt Disney Company. “We’re very pleased with our results, which continue to validate our strategic focus and investments in brands and franchises to drive long-term growth across the entire Company.”
The Parks and Resorts segment’s revenue climbed 9% year over year to $4.28 billion. Walt Disney said an increase in domestic operations was partially offset by a decrease in international operations, impacting growth in operating income for the segment.
The Studio Entertainment division recorded a 46% increase in revenues to $2.7 billion and an 86% increase in operating income, which brought it to $1 billion. The entertainment giant said higher theatrical distribution results and revenue share in the Consumer Products & Interactive Media segment drove the increase in operating income, as did growth in the TV/ SVOD distribution and better home entertainment results.
The Consumer Products & Interactive Media business collected $1.9 billion in sales, an 8% year over year increase, and a 23% increase in operating income driven by growth in Merchandise Licensing. The success of Star Wars: The Force Awakens boosted income for the Studio Entertainment and Consumer Products & Interactive Media segment, although the timing of the College Football Playoff bowl games more than offset strong growth in Media Networks.
Shares of Walt Disney Co (NYSE:DIS) slumped by as much as 4.66% to $88.10 in after-hours trading following tonight’s earnings results.