Disney show weighed down figures
It has been a very busy period for Walt Disney as they have continued to produce some of the movie industry’s biggest blockbusters, run world-leading entertainment resorts and everything else that they do. Now, though, it is time to take a look at their first quarter financial release.
For the period ending 31 December 2016, Disney reported revenues of $14.78 billion, which was down 3% on the previous year’s total of $15.24 billion. This does seem underwhelming, but there are a number of logical reasons behind the negative comparison.
One of the main reasons behind the comparative drop in revenue is the unfavourable side-by-side performance of the American company’s movie business compared to the end of the previous year. This was inescapable, because to match the revenue from that period Disney would have needed Rogue One (the latest Star Wars movie) to perform to such astronomical heights as Star Wars: The Force Awakens, which was never to be expected.
Also, revenue coming from Disney’s cable networks business (which includes ESPN) fell 2.1% to $4.43 billion in the quarter, which was down on analysts’ expectations of $4.53 billion. There has been a deal of pressure on Disney’s cable networks since 2015 as they have been losing subscribers, with people opting for cheaper online services.
Walt Disney share price over the last twelve months
As of 08 February 2017: 110.44
SOURCE: Yahoo Finance
Bob Iger, chairman and CEO of Walt Disney Company, said: “We’re very pleased with our financial performance in the first quarter. Our Parks and Resorts delivered excellent results and, coming off a record year, our Studio had three global hits including our first billion-dollar film of fiscal 2017, Rogue One: A Star Wars Story.
“With our proven strategy and unparalleled collection of brands and franchises, we are extremely confident in our ability to continue to drive significant value over the long term.”
Dominion holds Walt Disney in its Global Trends Managed Fund.
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