The Walt Disney Company Reports Second Quarter Earnings for Fiscal Year 2013
Times are good at The Walt Disney Company. The company reported an overall profit of $1.5 billion for the second quarter of the fiscal year – up 32 percent from the same period last year. Revenue was also up nearly 10 percent to $10.6 billion. These results exceeded the expectations on Wall Street.
Revenue at the parks and resorts increased 14 percent to $3.3 billion and operating income increased 73 percent to $383 million. This boost was due in part to increased guest spending and attendance at the Walt Disney World Resort and Disneyland, plus the addition of the Fantasy cruise ship and an increase in occupied room nights at the Walt Disney World Resort.
The resorts set new attendance records, with domestic attendance going up by 8 percent and guest spending increasing by 10 percent. Increased guest spending was driven by a higher average ticket price, food, beverage, merchandise spending, and hotel rates.
On the studio side of things, despite the dismal performance of John Carter last year, the studios managed to increase revenue by 13 percent to $1.3 billion with income at $118 million, thanks in part to hits like Wreck-it-Ralph and Oz: The Great and Powerful.
Cable powerhouse ESPN continues to anchor Disney’s television enterprise – which also happens to be its largest business – helping the Mouse’s networks post an operating profit of $1.9 billion, up 8 percent from last year. The consumer products division posted an operating profit of $200 million, up 35 percent from last year.
In a press release, Chairman and CEO of The Walt Disney Company Bob Iger said, “Our results reflect our successful strategy, the strength of our brands and the value of our high-quality creative content, all of which continue to drive long-term growth and shareholder value.”
Disney stock reached an all-time high near end-of-day trading on Tuesday, May 7.