Disney tops 3Q earnings expectations

4.-Disney-tops-3Q-earnings-expectations

By Ryan Nakashima
Los Angeles
(Associated Press)

Disney’s movie studio has boosted company earnings once again, with the debut of Avengers: Age of Ultron proving the continued strength of the Marvel superhero brand.

Net income grew 11 per cent in the April-June quarter to $US2.48 billion ($A3.41 billion), or $US1.45 per share, topping the $US1.39 expected by 10 analysts polled by Zacks Investment Research.

Revenue climbed five per cent to $US13.1 billion, a hair short of the $US13.2 billion expected by six analysts surveyed by Zacks.

Disney said weakness in the euro hurt revenue at Disneyland Paris. Although parks revenue grew, the unit’s revenue came in below forecasts.

Studio revenue gains of 13 per cent topped all divisions, helped by Avengers, which grossed $US1.4 billion in theatres worldwide since its April release.

Every Disney segment grew except for its interactive division. There, revenue dropped and the unit broke even, reversing a profit from a year ago, as the Disney Infinity game lost momentum. The game is expected to get a surge of fresh content for this holiday season.

Shares fell 2.1 per cent to $US119.14 in after-hours trade following the release of results.

0

Like This