Walt Disney Q4 Profit Down - Update

(RTTNews) - Media and entertainment giant Walt Disney Co. (DIS), Thursday reported a drop in profit for the fourth quarter, as revenues declined 3 percent reflecting lower advertising revenues at cable networks and the extra week last year. Both earnings and revenues of Disney fell short of Wall Street estimates.

Burbank, California-based Disney's fourth-quarter profit rose to $1.77 billion or $1.10 per share from $1.61 billion or $0.96 per share last year. Analysts polled by Thomson Reuters estimated earnings of $1.16 per share.

Revenues for the quarter dropped 3 percent to $13.14 billion from $13.51 billion last year. Analysts had a consensus revenue estimate of $13.52 billion.

"We're very pleased with our performance for the year, delivering the highest revenue, net income and earnings per share in Disney's history," said Robert Iger, Chairman and Chief Executive Officer. "Fiscal 2016 was our sixth consecutive year of record results, highlighted by the opening of Shanghai Disney Resort, the phenomenally successful return of Star Wars, and our Studio's record-breaking $7.5 billion in total box office."

Disney has enjoyed a strong box office success this year, with four of the five highest grossing movies of 2016. Last weekend, Disney and Marvel's Doctor Strange topped the weekend box office with an $84.9 million opening. "Zootopia" has raked in about $1.02 billion globally, while "The Jungle Book" has generated about $364 million domestically and another $602 million in international box office. Meanwhile, "Captain America: Civil War" is the highest grossing movie of the year until now with worldwide box office receipts of about $1.15 billion. "Finding Dory" has also crossed the 1 billion mark worldwide.

Walt Disney opened its sixth theme park globally The Shanghai Disney land in June this year. The 963-acre park is eight times the size of Hong Kong Disneyland. Walt Disney spent about $5.5 billion to build the park, but is reported to be the cheapest out of all the Disneyland parks.

Media networks segment's revenues dropped 3 percent to $5.66 billion, while parks and resorts units inched up 1 percent to $4.39 billion. Studio entertainment revenues increased 2 percent to $1.81 billion and consumer products & interactive media division revenues declined 17 percent to $1.29 billion.

"The decrease at ESPN reflected lower advertising and affiliate revenue and higher programming and production costs. Lower advertising revenue was primarily due to fewer impressions and lower rates," the company said in a statement.

DIS closed Thursday's trading at $94.96, up $0.32 or 0.34% on the NYSE. The stock, however, dropped $2.37 or 2.38% in the after-hours trade.