In another case of the rich getting richer, The Walt Disney Company has reported a 9% increase in Q2 earnings over last year, with profits climbing from US$1.917 billion to US$2.108 billion.
Disney’s media networks accounted for the largest growth in the quarter, with revenues up 13% (US$5.134 billion to US$5.81 billion). While operating income for this part of the company’s business declined by 2%, largely as a result of higher programming and production costs at ESPN, broadcast income increased by 90% (US$159 million to US$302 million) on the strength of sales posted by Marvel’s Daredevil, Lost and Once Upon a Time.
Disney’s consumer products division also contributed a double-digit increase this quarter over last year. Its revenues jumped by 10% (US$885 million to US$971 million), driven by licensed merch sales for Frozen, and to a lesser extent, The Avengers.
Revenue from parks and resorts grew by 6% (US$3.562 billion to US$3.76 billion), with domestic increases offset by higher operating costs at Disneyland Paris and Hong Kong Disneyland Resort, and also higher pre-opening costs at Shanghai Disney Resort.
The interactive division’s revenue is down by 12% (US$268 million to US$235 million), but operating income is up 86% (US$14 million to US$25 million) since fewer mobile games are in the hopper.
Disney’s studio entertainment business also saw its revenue drop by 6% (US$1.8 billion to US$1.685 billion) and operating income by 10% (US$475 million to US$425 million). Decreases in domestic home entertainment and international theatrical distribution were attributed to higher sales for Frozen in Q2 2014, compared to Big Hero 6 in Q2 2015.