LOS ANGELES (CelebrityAccess MediaWire) — The Walt Disney Co. reported fiscal third-quarter, revealing slight increases in profit in spite of weakness in its studios division.
For the quarter ending on June 29th, Disney posted profits of $1.85 billion, up from $1.83 billion in the same period in the previous year. Revenue was up by 4.4% to $11.58 billion from the same period in the prior year.
The media networks division, Disney's largest business unit, saw an increase of 8% in operating income as revenue rose by 5%, showing particular strength in their ESPN sports operation.
Revenue from their theme parks and resorts division was up by 7% with a 9% increase in profits, driven primarily by higher ticket and food prices. Disney has invested heavily in their U.S. theme parks in recent years, including the launch of the Cars Land movie tie-in at their Disney California Adventure.
Disney's studio division was a drag on the company's performance, posting a 2% decrease in sales and a 36% drop in profit, driven in part by expenses related to marketing in the run up to the release of THe Lone Ranger. The film cost nearly $250 million and has performed well below expectations at the box office. – CelebrityAccess Staff Writers