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Walt Disney Earnings, Revenue Miss in Q3; Blames Fox

Published 08/06/2019, 04:08 PM
Updated 08/06/2019, 05:01 PM
© Reuters.  Walt Disney Earnings, Revenue Miss in Q3; Blames Fox

© Reuters. Walt Disney Earnings, Revenue Miss in Q3; Blames Fox

Investing.com - The Walt Disney Company (NYSE:DIS) on Tuesday reported fiscal third-quarter earnings and revenue that fell short of analysts’ expectations as efforts to integrate the businesses of Twenty-First Century Fox weighed on performance.

The firm reported earnings per share of $1.35 on revenue of $20.25 billion. Analysts polled by Investing.com forecast earnings per share of $1.72 on revenue of $21.46 billion. That compared to earnings per share of $1.87 on revenue of $15.23 billion in the same period a year earlier. The company had reported earnings per share of $1.61 on revenue of $14.92 billion in the previous quarter.

The earnings miss was blamed on the loss from the 21 Century Fox businesses and lower TV/SVOD and home entertainment distribution results at the company's legacy operations. Disney acquired Twenty-First Century Fox in March this year.

"Our third-quarter results reflect our efforts to effectively integrate the 21st Century Fox assets to enhance and advance our strategic transformation," Disney said in a statement.

Studio entertainment revenues for the quarter increased 33% to $3.8 billion and segment operating income increased 13% to $792 million, led by strong box office performances, the company said.

"The increase in theatrical distribution results was due to the performance of Avengers: Endgame, Aladdin, Captain Marvel and Toy Story 4 in the current quarter compared to Avengers: Infinity War, Incredibles 2, Black Panther and Solo: A Star Wars Story in the prior-year quarter," Disney added.

Its cable networks saw revenues increase 24% to $4.5 billion and operating income rise 15% to $1.6 billion, underpinned by higher income from ESPN thanks to higher advertising and affiliate revenue. Broadcasting revenues for the quarter increased 16% to $2.2 billion and operating income decreased 17% to $307 million.

The parks, experiences and products division, meanwhile, saw revenues for the quarter increased 7% to $6.6 billion and segment operating income increased 4% to $1.7 billion, which the company attributed to increases at its consumer products businesses and Disneyland Paris, though this was partially offset by a decrease at its domestic parks and resorts.

Walt Disney shares lost 4.82% to trade at $135.11 in after-hours trade following the report.

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