Disney earnings down 1% in Q2

The group’s operating profit was dented by thin attendance at Disney’s Tokyo theme park in the wake of March 11 earthquake and tsunami, the late Easter break, and the disappointing release of blockbuster 'Mars Needs Moms' which failed to match the phenomenal success of last year’s 'Alice in Wonderland.'

Matthew Harrigan, a Wunderlich Securities analyst in Denver stated, “The noisy elements, the studio and Japan, clearly were the problem and they are hard to predict.

“The good news is that the core of this company, ESPN and its TV business, still performed very well.”

Income from theme parks and resorts impacted by temporary closure in March after the Tokyo earthquake and tsunami dropped 3 percent to 145 million dollars.

Disney Q2 earnings
Overall, in the quarter that ended on April 2, the entertainment conglomerate earned $942 million, or 49 cents a share compared to a net income of $953 million, or 48 cents per share from a year earlier.

Sales rose 5.8 percent to 9.08 billion dollars from 8.58 billion dollars the previous year earlier but profits missed the 9.19 billion dollars estimates compiled by analysts.

Revenue from Disney's TV division shot up to $4.3 billion, an increase of 12 percent increase from the previous year. Profits were up 17 percent to $1.52 billion, propelled by advertisements and sales of Disney merchandise.

Earnings at Cable Networks which includes its ESPN sports channel, ABC Family, and the Disney Channels rose by 15 percent to $1.36 billion in the second quarter.

Income from theme parks and studio decline
Income from theme parks and resorts dropped 3 percent to 145 million dollars impacted by temporary closure in March after the Tokyo earthquake and tsunami.

Revenue from the Disney’s studio entertainment division dived by 13 percent to $1.34 billion while the division's operating income in the second quarter fell 65 percent to $77 million.

However, the studio expects the third quarter to rebound with blockbuster releases like 'Pirates of the Caribbean: On Stranger Tides,' the fourth instalment of the popular series and 'Cars 2' on the horizon.

Robert Iger, President and CEO of The Walt Disney Company stated, "We are pleased with the underlying quality of our second quarter earnings.

"There is great creative momentum throughout the company which gives us continued confidence in our ability to grow our businesses."