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Theme park visitors boost Disney profits | |
(about 3 hours later) | |
Disney has reported rising profits due to strong theme park attendance and income from its television channels. | Disney has reported rising profits due to strong theme park attendance and income from its television channels. |
The global media giant reported profits of $1.6bn (£1.05bn) for the period between July and September compared with $1.5bn at the same time last year. | The global media giant reported profits of $1.6bn (£1.05bn) for the period between July and September compared with $1.5bn at the same time last year. |
Television revenue has climbed, despite Americans dropping cable subscriptions in favour of on-demand providers such as Netflix. | Television revenue has climbed, despite Americans dropping cable subscriptions in favour of on-demand providers such as Netflix. |
Revenue for Disney's parks and resorts reached $4.4bn. | |
The company attributed the growth to increased visitor numbers at parks in the US and Disneyland Paris. | |
The company's television channels also saw a rise in revenue, which climbed 12%. | |
Investors had been concerned because audiences have been abandoning traditional television, but in the event profits from cable TV increased by $381m for the quarter to $1.7bn. | |
ESPN factor | |
Analysts had been watching to see what Disney would say about the number of ESPN subscribers, which were down last quarter. | |
Disney said subscribers had increased in this quarter and attributed the growth to the new ESPN affiliate channel, SEC Network, which launched in August 2014. | |
The sports network makes up 40% of Disney's revenue. | |
Last month ESPN announced it was cutting 300 employees or 4% of its global workforce. | |
The film arm of Disney came in flat bringing in $1.8bn in revenue during the quarter. | |
The company is expecting a marked increase in this area next quarter when it releases the latest film in the Star Wars series. | |
"The next focus for investors is how much Star Wars is going to bring in," said Martin Pyykkonen senior research analyst at Rosenblatt Securities. | |
"There has been a lot of hype, pre-order ticket sales have been high and there will be a lot of merchandise that flows from that," he said. |
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