Disney reported third quarter adjusted earnings per share of $US1.28 on revenue of $US12.47 billion.
Analysts were looking for earnings per share of $US1.16 on revenue of $US12.16 billion, according to data from Bloomberg.
In after hours trade following the report, shares of Disney were up 0.5%.
Revenue at Disney’s media networks segment grew 3% to $US5.5 billion, while parks and resorts revenue was up 8% to $US3.9 billion and studio entertainment revenues grew 14% to $US1.8 billion.
Free cash flow decreased 25% from the prior year quarter, falling to $US2.05 billion from $US2.72 billion.
Disney reported that operating income in its cable networks segment fell 7% to $US1.9 billion due to an decrease at ESPN. The company said this was due to “higher programming and production costs, decreased recognition of previously deferred revenue and the absence of ESPN UK, which was sold in the fourth quarter of the prior year.”
At ESPN, the company said, “advertising revenue increased due to higher rates and more units sold. Higher rates reflected the benefit of FIFA World Cup soccer in the current quarter, partially offset by two less NBA finals games this year.”
“Frozen” again bolstered Disney’s results, with the company saying that income in its worldwide home entertainment segment was drive by unit sales growth, reflecting the success of “Frozen.”
In its second quarter, the media giant reported adjusted earnings per share of $US1.11 on revenue of $US11.65 billion and reported studio entertainment revenue that was up 35% over the prior year, reflecting the success of its “Frozen” and “Thor: The Dark World” titles.
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