Disney Reports Big 1Q

After finishing strong in 2014, the Walt Disney Co. started off its first fiscal quarter of 2015 with more record-breaking results, with revenue up 9% to nearly $13.4 billion, while net income rose 19% to around $2.2 billion.

Variety reports nearly every division at Disney reported double-digit profit gains during the three-month period that ended Dec. 27., with the exception of the media networks group, which reported a 3% gain in operating income on Tuesday.

“This was yet another incredibly strong quarter for our company, with diluted EPS up 23% driven by record revenue as well as significant growth in segment operating income,” said Robert A. Iger, chairman and CEO, the Walt Disney Co. “Our results once again reflect the strength of our brands and high quality content and demonstrate that our proven franchise strategy creates long-term value across all of our businesses.”

Given that the quarter’s timing came during the peak holiday shopping season, Disney’s consumer products arm saw the biggest gains, with sales surging 22% to $1.4 billion, which boosted profits by 46% to $626 million. Not surprisingly, “Frozen” merchandise generated much of the demand

The media networks group, Disney’s biggest moneymaker, generated $5.8 billion in sales, up 11%, while operating income at the division rose 3% to nearly $1.5 billion.

The cable networks were impacted by higher programming costs at ESPN, which caused that group to see sales decrease 2% to $1.3 billion, although Disney Channels and ABC Family enjoyed gains during the period from increased advertising spending.

Operating income on the broadcasting side increased 35% to $240 million for the quarter due to an increase in affiliate fees and higher program sales of shows like “Scandal,” “Criminal Minds” and “Once Upon a Time.”

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