Success of ‘Frozen’ Leads to Strong First Quarter Earnings Report by The Walt Disney Company
Walt Disney Studios reported a 75 percent increase in operating income to $409 million. Studio revenue increased 23 percent to $1.9 billion.
These increases were due mostly to the success of Marvel’s Thor: The Dark World which earned $633.1 million in global box office sales, and the worldwide success of the monstrous hit Frozen which is on track to earn $1 billion in global ticket sales.
Frozen cost the Studios $300 million to produce and is currently nominated for an Oscar for Best Animated Film. The movie will continue to be a moneymaker for the company through merchandise sales, Blu-ray and DVD sales, and more.
The Parks and Resorts operating income increased 16 percent to $671 million, and was primarily due to increased guest spending at the parks and resorts, and reflected higher prices for tickets, food, beverages, and merchandise.
Disney’s Consumer Products division reported a 24 percent increase in operating income to $430 million thanks to an increase in merchandise and licensing product sales. The sales of Star Wars toys plus merchandise sales from Planes and Monsters University fueled the 24 percent increase.
The Walt Disney Company reported a net income of $1.84 billion for the first fiscal quarter of 2014, up from $1.38 billion in the first quarter of 2013.
One area that is still struggling appears to be Disney Interactive which is reportedly planning to eliminate at least 200 jobs in the near future. The division reported $55 million in operating income, which is an increase from $9 million last year. However, the company said Disney Interactive will still report a second quarter operating loss.