Walt Disney Co.’s (NYSE:DIS) Q2 earnings are up 10%, the company stated on Tuesday. Higher affiliate fees, rising resort prices and increased advertising sales offset the company’s weaker movie business and the steep programming costs associated with ESPN.
Disney’s net income for the quarter ending on March 28 was $1.2 billion. The company reported earnings of $1.9 billion in the same period last year. Earnings per share came to $1.23, which beat analyst estimates of $1.11. Company-wide revenue increased to $12.5 billion, up 7%.
The company’s media networks unit (ESPN, ABC, etc.) rose 13% to $5.8 billion. ESPN’s steep production and programming costs cut into Disney’s bottom line as costs to broadcast live games continues to rise. That being said, ESPN’s popularity helped generate higher advertising and affiliate revenues.
Disney’s broadcasting business also had increased affiliate, advertising and programming sales than the previous year. Revenues for the parks and resorts unit were up 6% to $3.8 billion. The company saw more visitors to Disney resorts, and guests were spending more.
Revenues for the studio unit dropped 6% to $1.7 billion. The company stated that the previous year’s box office sales of the hit film Frozen marred Q2 performance by comparison.
In pre-market trading, company shares were up 2.2% to $113.45.