Disney’s fiscal Q1 up 9%; cable up, broadcast down


DisneyDisney’s Q1 2014 fiscal quarter ended 12/28/13. Revenues were $12.31 billion, up 9% from $11.34 billion a year ago. EPS for Q1 increased 34% to $1.03 from $0.77 in the prior-year quarter.

Media Networks revenues for the quarter increased 4% to $5.3 billion and segment operating income increased 20% to $1.5 billion. Operating income at Cable Networks increased $325 million to $1.3 billion for the quarter due to growth at ESPN, higher equity income from A&E Television Networks and, to a lesser extent, an improvement at the domestic Disney Channels. Higher operating income at ESPN was due to increased affiliate and advertising revenues and the absence of equity losses as a result of the prior-year sale of interest in the ESPN STAR Sports JV. The increase in affiliate revenue was driven by contractual rate increases, partially offset by a decrease as a result of the sale of ESPN UK in the fourth quarter of the prior year.

Growth in ESPN ad revenues was due to an increase in rates and units delivered, partially offset by lower ratings.

Operating income at Broadcasting decreased $84 million to $178 million for the quarter due to higher programming costs, lower program sales and decreased ad revenue, partially offset by higher affiliate revenues and lower general and administrative expenses. Higher programming costs were due to higher program write-offs and a contractual rate increase for Modern Family. The decline in program sales reflected higher sales of Revenge and Army Wives in the prior-year quarter.

Lower ad revenue was driven by a decrease at the owned television stations, partially offset by an increase at the ABC TV Network. The increase was due to higher rates and more units delivered, partially offset by lower ratings. Affiliate revenue growth reflected higher contractual rates.

–Parks and Resorts revenues for the quarter increased 6% to $3.6 billion.

–Studio Entertainment revenues increased 23% to $1.9 billion

–Consumer Products revenues increased 11% to $1.1 billion