Walt Disney beats by $0.06, misses on revs (109.00 -0.57)
2/7/2017, 4:14:42 PM ET
- Reports Q1 (Dec) earnings of $1.55 per share, excluding non-recurring items, $0.06 better than the Capital IQ Consensus of $1.49; revenues fell 3.0% year/year to $14.78 bln vs the $15.29 bln Capital IQ Consensus.
- Cable Networks revenues for the quarter decreased 2% to $4.4 billion and operating income decreased 11% to $0.9 billion. The decrease in operating income was due to a decrease at ESPN. The decrease at ESPN was due to higher programming costs and lower advertising revenue, partially offset by affiliate revenue growth.
- Broadcasting revenues for the quarter were flat at $1.8 billion and operating income increased 28% to $379 million. The increase in operating income was due to affiliate revenue growth and decreased programming cost write-downs for network programming.
- Parks and Resorts revenues for the quarter increased 6% to $4.6 billion and segment operating income increased 13% to $1.1 billion. Operating income growth for the quarter was due to increases at our domestic and international operations. The growth in the quarter was unfavorably impacted by Hurricane Matthew at our domestic operations and a shift in the timing of the New Year's holiday relative to our fiscal periods.
- Studio Entertainment revenues for the quarter decreased 7% to $2.5 billion and segment operating income decreased 17% to $842 million. Lower operating income was due to decreases in home entertainment and theatrical distribution and a lower revenue share from the Consumer Products & Interactive Media segment, partially offset by growth in TV/SVOD distribution.
- Consumer Products & Interactive Media revenues for the quarter decreased 23% to $1.5 billion and segment operating income decreased 25% to $642 million. Lower operating income was due to decreases at our merchandise licensing, games and retail businesses. Lower results at our merchandise licensing business were due to higher revenue in the prior-year quarter from merchandise based on Star Wars and Frozen and an unfavorable impact from foreign currency translation, partially offset by higher minimum guarantee shortfall recognition.