Walt Disney Co. reported a better-than-expected 7% rise in
revenue for the first three months of the year as continued
strength at its television networks and consumer products
businesses offset weakness at its movie studio.
Shares of Disney, up 37% over the past year through Monday, rose
2% to $113.25 in premarket trading,
For years, Disney's results have been powered by growth at its
cable networks, particularly ESPN; however, in recent quarters,
profits have been dinged by rising sports-right fees and lower
advertising amid concerns about shifting viewing patterns by
consumers.
In the latest quarter, Disney's media networks--the company's
largest unit, which holds the ABC network along with Disney's cable
portfolio--saw revenue rise 13% and profits slipped 2%.
Meanwhile, Disney's year-ago quarter was boosted by continued
enthusiasm for the blockbuster movie "Frozen." There were no
comparable hits in the reported quarter, although the live-action
remake of the animated classic "Cinderella" in March was considered
a success.
In the latest quarter, Disney's movie studio saw its revenue
fall 6% and profits drop 10%. The strong debut for "Avengers: Age
of Ultron," which recently had the second-biggest opening ever,
will help the current quarter that ends in June.
Overall for the three months ended March 28, the company's
fiscal second quarter, Disney reported a profit of $2.11 billion,
or $1.23 a share, up from $1.92 billion, or $1.08 a share, a year
earlier. Excluding certain items affecting comparability, per-share
earnings rose to $1.23 from $1.11.
Revenue increased to $12.46 billion from $11.65 billion.
Analysts polled by Thomson Reuters expected per-share profit of
$1.11 and revenue of $12.25 billion.
Write to Tess Stynes at tess.stynes@wsj.com