Disney touts Even a massive and embarrassing flop could not stop profits from climbing in the Walt Disney Company's most recent fiscal quarter.

Walt Disney said this week its earnings swelled in its second fiscal quarter this year. The company posted a double-digit jump in net income from the second quarter of 2011. Investors were bracing for the financial impact from the high budget film "John Carter," which sputtered at the global box office.

Net income increased to $1.14 billion, the company added. Bob Iger, the media giant's chairman and chief executive, said in a statement the company's robust earnings growth underscored the strength of its underlying business model.

"With 18 percent adjusted growth in earnings per share, we're pleased with out second quarter performance," Iger noted. "We're incredibly optimistic about our future, given the strength of our core brands, Disney, Pixar, Marvel, ESPN and ABC, and our extraordinary ability to grow franchises across our businesses, such as "'The Avengers,'" which shattered domestic box office records with a $207.1 million opening weekend for a global performance of more than $702 million to date."

"John Carter" was a colossal failure for the Mouse House, as it took a reported $200 million loss on the film. Executives had hoped the movie, which cost an estimated $250 million to make, would launch yet another profitable franchise. Though "John Carter" underperformed, Disney said growth in a number of divisions more than offset weaker activity in certain segments.

Its theme parks were a popular destination for travelers in the first three months of this year, Disney said, with profit soaring 53 percent. Bloomberg reports sales beat analysts' expectations, growing 6.1 percent to $9.63 billion. Disney's adherence to cost savings initiatives also fueled earnings growth.

Rich Greenfield, an analyst at BTIG Research, told the news provider the immense success of The Avengers would have a significant impact on the company's future growth. He said having such a popular franchise – the film has grossed more than $700 million across the globe in only two weeks of release - would not only drive growth in its film arm.

"Having something like "The Avengers, though, really goes a long way," Greenfield said in an interview with the news provider. "These are things that you can leverage through the Disney channels. These are things you can leverage through the parks. These are things you can leverage on the broadcast network."

Share To:

Strategic Sourceror

Post A Comment:

1 comments so far,Add yours

  1. I watched the The Avengers and it was FREAKING AWESOME! I like them all but the Hulk/Bruce Banner STANDOUT among the rest. Mark Ruffalo did an AMAZING job and he gave JUSTICE to Hulk/Bruce Banner compared to the other 2 Hulk movies. Marvel and Disney made an EXCELLENT decision for giving the role to Mark Ruffalo. We NEED a new Hulk movie of Mark Ruffalo! WE NEED MORE!