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Star Wars propels Disney earnings
Michelle Clancy
| 11 February 2016
Walt Disney reported quarterly earnings and revenue that topped analysts' expectations, as Star Wars: The Force Awakens propelled the filmed entertainment unit forward.
Its studio sales for the period came in at $2.72 billion, up 46% year-over-year, and topping estimates of $2.32 billion, according to StreetAccount. However, the company's cable networks — like ESPN — saw a year-over-year decrease in operating income.
Revenue of $6.33 billion for its media networks unit slightly beat expectations and rose 8% from the previous year. But operating income for the segment fell 6% to $1.41 billion. The company said advertising and affiliate revenue grew, but was partially offset by "a decline in subscribers and unfavourable foreign currency translation impacts."
Operating income for the cable networks slid 5% to $1.2 billion "due to a decrease at ESPN," the company said. However, subscribers grew.
The media giant posted overall fiscal first-quarter earnings of $1.63 per share, adjusted, on $15.24 billion in revenue. Earnings per share rose 28% from the previous year, while sales climbed 14%.
Analysts had expected Disney to report earnings of about $1.45 a share on $14.75 billion in revenue.
"Well, we had great performance across the board, really. Clearly, Star Wars drove the studio performance," CEO Bob Iger told CNBC's Closing Bell on Tuesday.
