Disney's theme park revenue soared, but a prolonged YouTube contract dispute dampened its Q1 earnings
This is read by an automated voice.Please report any issues or inconsistencies here.
A record fiscal quarter for Walt Disney Co.’s theme parks division was dampened slightly by a streaming aquisition and a protracted fight with YouTube, the Burbank media and entertainment giant reported Monday.Disney recorded overall revenue of about $26 billion in the three-month period that ended Dec.
27, up 5% compared to the previous year.Disney’s income before income taxes totaled nearly $3.7 billion, a 1% jump from the same time period last year.
Earnings per share were $1.34 for the quarter, down from $1.40.Disney Chief Executive Bob Iger said in a statement that he was “pleased” with the company’s start to the fiscal year and nodded at the transition ahead to a new CEO.“As we continue to manage our company for the future, I am incredibly proud of all that we’ve accomplished over the past three years,” he said.It was a big quarter for Disney’s experiences division, which includes its theme parks, cruise line and Aulani resort and spa in Hawaii.Hollywood Inc.
Disney’s 2016 animated film “Zootopia” still ranks as China’s biggest Hollywood animated film.But since then, the market has changed.The sector reported $10 billion in revenue, aided by a 1% bump in attendance at its domestic theme parks and higher guest spending.
The launch of the new Disney Destiny cruise ship in November also helped boost operating income to $3.3 billion, a 6% boost compared to the previous year.Disney’s box office success with billion-dollar hits like “Zootopia 2” and “Avatar: Fire and Ash” helped propel revenue for its entertainment division by 7% to $11.6 billion.But costs related to its acquisition of a majority stake in FuboTV, as well as higher marketing costs in theatrical distribution and streaming services affected the sector’s operating income, which declined 35% to $1.1 billion.The dip in operating income from the entertainment sector took a toll...