Media company Walt Disney Co (NYSE:DIS) on Tuesday posted record profit in the June quarter, but its revenue missed Wall Street expectations for the first time in two years and its shares fell more than 2 percent in extended trading.
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Disney recorded net income of $2.48 billion for April through June, up 11 percent from a year earlier, and revenue of $13.1 billion, just shy of the $13.23 billion projected by industry analysts.
The weaker euro compared to a year earlier cut revenue at the Disneyland Paris theme park by about $100 million, Chief Financial Officer Christine McCarthy said on a conference call.
The revenue miss likely sparked the decline in Disney shares, said Edward Jones analyst Robin Diedrich.
"People have come to expect Disney to beat estimates every quarter by a lot," Diedrich said. Overall, the company produced "a good solid quarter."
Operating profit at its theme parks rose 9 percent to $922 billion in the third quarter ended June 27 as attendance and spending rose at U.S. parks.
Operating income at the company's largest unit, media networks, rose 4 percent to $2.38 billion in the quarter, as cable channels brought in higher fees from pay TV distributors.
The media networks segment includes sports channel ESPN, the Disney Channels and the ABC broadcast network.
ESPN has experienced "modest" subscriber losses as viewing habits have shifted to digital platforms, Disney Chief Executive Bob Iger said. However, Iger said he has "enormous confidence in ESPN's future no matter how technology disrupts the media business."Disney's movie studio business recorded a profit of $472 million, up from $411 million a year earlier, helped by the success of "Avengers: Age of Ultron".
The company's overall net income climbed to $2.48 billion, or $1.45 per share, from $2.25 billion, or $1.28 per share last year. Revenue rose to $13.10 billion from $12.47 billion.
Analysts on average had expected a profit of $1.42 per share on revenue of $13.23 billion, according to Thomson Reuters I/B/E/S.
Disney shares fell 2.01 percent to $119.25 in after-hours trading on Tuesday. The stock had risen 29 percent this year, making it the best performer among the 30-member Dow Jones industrial average <.DJI>.
(By Lisa Richwine and Arathy S Nair; Reporting By Arathy S Nair in Bengaluru; Editing by Savio D'Souza, Bernard Orr)