The Walt Disney Company Reports Fourth Quarter Earnings
In the report, the company reported a 7 percent increase in revenue for the year to a record $45 billion and an 8 percent increase in net income to a record $6.1 billion.
“We’re extremely pleased with our results for Fiscal 2013, delivering record revenue, net income and earnings per share for the third year in a row,” said Robert A. Iger, Chairman and CEO, The Walt Disney Company. “It was another great year for the Company, both creatively and financially, and we remain confident that we are well positioned to continue our strong performance and drive long-term shareholder value.”
Disney theme parks provided the biggest boost for the company. The Parks and Resorts revenue for the quarter increased 8 percent to $3.7 billion, while revenues for the year increased 9 percent to $14.1 billion.
According to the report, results for the quarter reflected growth at the domestic parks and resorts, in addition to an increase in Disney Vacation Club ownership sales and higher royalty from Tokyo Disney Resort. Disneyland Paris continued its slump.
Higher ticket prices and increased food and merchandise prices at Walt Disney World Resort and Disneyland contributed to a 9 percent increase in per capita spending at those two parks. The higher costs were due to spending on MyMagic+ in addition to labor and other cost inflation.
The Walt Disney Studios’ revenue for the fourth quarter increased 7 percent to $1.5 billion and operating income increased by $28 million to $108 million. The revenue for the year increased 3 percent to $6 billion, and operating income decreased $61 million to $661 million.
The report said the decrease in operating income for the year was due to a decrease in home entertainment results driven by decreased sales this year compared to last year. The studio also had to deal with the write down of the box office disaster The Lone Ranger.
Disney Consumer Products ended the year with a 9 percent increase in revenue to $3.6 billion. The debut of Disney Infinity helped Disney Interactive increase fourth quarter revenue by $205 million to $396 million. The holiday sales of Infinity will be crucial for Interactive’s continued success.
Upcoming projects likely to have an impact on revenue and income in the next few months include the highly anticipated full rollout of MyMagic+, spending as Shanghai Disneyland construction speeds up, and movie releases for 2014 including Maleficent in the spring.