Walt Disney Co. 2nd Quarter Earnings Report Shows Small Gain in Revenue Over Last Year


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This afternoon, The Walt Disney Company released their earnings report for the 2nd fiscal quarter of 2019 (ending March 31, 2019), showing revenue up 3% and income down 10%.

Chairman and CEO Bob Iger said in a statement,

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

Parks, Experiences, and Consumer Products

Compared to last year’s 2Q, Parks, Experiences, and Consumer Products saw growth of 5% in revenues, from $5.903 billion to $6.169 billion, and 15% growth in segment operating income, from $1.309 billion to $1.506 billion.

Growth was due in part to increased guest spending and higher attendance figures at Walt Disney World, partially offset by higher costs for labor and costs of new offerings. Shanghai Disney Resort was somewhat flat, with higher ticket prices offset by lower attendance.

There were also increases at Consumer Products due to growth in the games business.



Disney Cruise Line had a higher operating income compared to last year due to a dry-dock for the Disney Magic in 2018.

Direct-to-Consumer and International

The Direct-to-Consumer and International division saw revenues growth of 15% for this quarter over last year, from $831 million to $955 million. Operating income loss fell 109%, from a loss of $188 million to a loss of $393 million.

The continue loss of operating income is due to the ongoing investment in ESPN+.

There was an increase, however, at the International Channels based on higher affiliate rates and lower programming costs.



Media Networks

The Media Networks division brought in $5.525 billion in revenues this quarter compared to $5.508 billion, a less than 1% adjustment from 2019’s second quarter. Segment operating income for the division’s Q2 fell 3% over last year — $2.185 billion down from $2.258 billion.

While, in total, growth was flat, Cable Networks were up 2% due to increased revenue at ESPN and Broadcasting was down 2% due to higher programming costs.

Studio Entertainment

Studio Entertainment was once again down compared to last year. Quarterly revenues decreased 15% from last year, from $2.499 billion to $2.134 billion — operating income dropped 39%, from $874 million to $534 million.



The 2nd quarter theatrical results compared the success of Black Panther and Star Wars: The Last Jedi in the previous year to this year’s Captain Marvel.

In home entertainment, Thor: Ragnarok and Star Wars: The Last Jedi performed well last year, but there were no Marvel or Star Wars titles in Q2 this year. Coco was also reflected in last year’s numbers, with Ralph Breaks the Internet seeing a home release in 2019.

21st Century Fox

Quarterly revenues were 373 million, with operating income of 25 million. This is the first quarter that numbers for Fox have been reported.

Announcements and Quotes



  • 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.

Source: The Walt Disney Company


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