Media company Walt Disney Co’s revenue missed Wall Street expectations for the first time in eight quarters, sending its shares down more than 2 percent in extended trading.
Disney said operating income fell at its parks and resorts outside North America, hurt by lower attendance and occupied room nights at Hong Kong Disneyland Resort and higher operating costs at Disneyland Paris and Hong Kong Disneyland Resort.
Overall operating profit at its theme parks, which is the largest contributor to revenue and profit, rose 9 percent to USD922 billion (HKD7.15 trillion) in the third quarter ended June 27.
Operating income at the company’s largest unit, media networks, rose 4 percent to USD2.38 billion (HKD18.45 billion) in the quarter, as cable channels brought in higher fees from pay TV distributors.
The media networks segment includes sports channel ESPN, the Disney Channels and the ABC broadcast network.
Disney’s studio business recorded a profit of USD472 million (HKD3.66 billion) up from USD411 million (HKD3.19 billion) a year earlier, helped by the success of “Avengers: Age of Ultron”.
The company’s overall net income climbed to USD2.48 billion (HKD19.23 billion), or USD1.45 (HKD11.24) per share, from USD2.25 billion (HKD17.45 billion), or USD1.28 (HKD9.92) per share. Excluding items, the company earned USD1.45 (HKD11.24) per share.
Revenue rose to USD13.10 billion (101.57 billion) from USD12.47 billion (HKD96.69 billion).
Analysts on average had expected a profit of USD1.42 (HKD11.01) per share on revenue of USD13.23 billion (HKD102.58 billion), according to Thomson Reuters.
Disney shares fell 2.01 percent to USD119.25 (HKD924.6) in after-hours trading on Tuesday. The stock had risen 29 percent this year, making it the best performing among the 30-member Dow Jones industrial average this year.
Words: Reuters
Photo: Denise Chan via Flickr
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