The Associated Press reports that a box office blast from “The Avengers” and an enthusiastic response to the revamp of Disneyland’s California Adventure theme park helped The Walt Disney Co. reap a better-than-expected third-quarter profit.
Disney’s movie studio was behind much of the earnings gain as studio profit surged to $313 million from $49 million a year ago, backed by upbeat ticket sales to movies like “The Avengers” and “Brave.” However, revenue missed expectations as studio revenue was roughly flat at $1.63 billion, much less than the $1.77 billion analysts expected. Smaller revenue from DVD and Blu-ray disc sales than a year ago was a key factor in the miss.
CEO Bob Iger said attendance at Disney California Adventure accounted for about half of the visits to its Anaheim, Calif., parks, up from just a quarter previously. The success comes on the heels of the June unveiling of a $1 billion-plus overhaul that included the addition of an area based on the movie “Cars.” Total revenue in the parks and resorts segment gained 9 percent to $3.44 billion, benefiting from a full quarter of operations of its newest cruise ship, the Disney Fantasy, higher Disneyland attendance and higher ticket prices. Last year, parks results were hurt by the earthquake and tsunami in Japan.
Net income for the three months ended June 30 rose 24 percent to $1.83 billion, or $1.01 per share. That beat the 93 cents per share expected by analysts polled by FactSet. Revenue rose 4 percent to $11.09 billion, well short of the $11.32 billion expected by analysts