Disney increases Profits by 21%
Earlier this year, Walt Disney
released its sci-fi adventure film “John Carter” which turned out to be a major
flop. The film has cost the company more than $280 million in losses (including
write-downs associated with John Carter). The big budget movie had a production
and marketing expenditure of $400 million and so far, it has managed to collect
only $271 million. The chairman of Walt Disney studios Mr. Rich Ross lost his
job over the disaster. The company has now released its financial statement for
the first quarter of 2012 and has, surprisingly, reported an increase in
profits by 21 percent.
The quarterly net income of Disney now
stands at $1.14 billion, up from $942 million reported last year. After “John
Carter”, Disney has also released “The Avengers” which has shown promise by
earning the number one spot in global box office performance. The film studios
have however, reported an operating loss of $84 million for the first quarter. The
financial result of Avengers is not reported in the current report and will be
disclosed in detail in the third quarter.
Where have the profits come from?
The profits have come in from
television and theme park income. ESPN and Disney Channel have proven to be the
company’s main strengths by reporting income of $1.7 billion.
Disneyland has contributed $222
million in the first quarter, an increase of 53 percent over the last year. The
Tokyo Disney Resort has also shown improved results but the improvement was
mainly because last year, the park closed down for three weeks due to March,
2011 earthquake and tsunami.
The financial condition of the company is expected
to improve even further in the third quarter owing to
a.
an expected continuous stream of income from
television and theme parks
b.
“The Avengers” which has earned $702 million
in the first two weeks. Pixar’s “Brave” and Tim Burton’s stop-motion animation
movie “Frankenweenie” are also expected to be released this fall.
Your comments and feedback are always appreciated.
Sarfaraz A.K.
sarfaraz@when.com
Your comments and feedback are always appreciated.
Sarfaraz A.K.
sarfaraz@when.com
