We’re very pleased with our Q2 results and thrilled with the record-breaking success of Avengers: Endgame, which is now the second-highest grossing film of all time and will stream exclusively on Disney+ starting December 11th. The positive response to our direct-to-consumer strategy has been gratifying, and the integration of the businesses we acquired from 21st Century Fox only increases our confidence in our ability to leverage decades of iconic storytelling and the powerful creative engines across the entire company to deliver an extraordinary value proposition to consumers.This earnings report is the second under a strategic reorganization plan that took place last year. Previous divisions Parks and Resorts is now Parks, Experiences and Consumer Products. The remaining portion of the Consumer Products & Interactive Media division is now Direct-to-Consumer and International. Media Networks and Studio Entertainment remain. Overall Earnings Diluted earnings per share were up 81% from last year’s 1st quarter, from $1.95 to $3.53. Revenues for the company were flat compared to last last year, gaining slightly from $14.548 billion to $14.922 billion; operating income decreased from $4.237 billion to $3.816 billion, an 10% drop.
- Parks, Experiences, and Consumer Products: 5% growth in revenues and 15% growth in operating income for the 2nd quarter
- Direct-to-Consumer and International: 15% growth in revenues and 109% decrease in operating income for the 2nd quarter
- Media Networks: Less than 1% growth in revenues and 3% decrease in operating income for the 2nd quarter
- Studio Entertainment: 15% decrease in revenues and 39% decrease in operating income for the 2nd quarter
- 21st Century Fox: This is the first quarter numbers have been reported, so there is no comparison to last year
- Avengers: Endgame will be released to Disney+ on December 11th, just a month after the launch of the new service.
- When asked about the Fox acquisition, Iger stressed the importance of leveraging the PEOPLE of Fox, not just the content and was pleased that members of the Fox team have been put in leadership positions.
- When asked about the parks, Iger reiterated their pricing strategy, stating that it's not just about raising prices, it's being smart about it. Iger also said that Rise of the Resistance in Star Wars: Galaxy's Edge will open "later in the year."
- Iger said there may be opportunities to bringing a Marvel presence to Shanghai Disneyland and suggested that Parks & Resort was already working on it.