The Walt Disney Company reported their earnings today for the first quarter (Q2) of fiscal year 2017 which ended on April 1, 2017. According to Bob Iger, The Walt Disney Company delivered another quarter of double-digit EPS growth, driven by the strong performance from the Studio and Parks and Resorts. Iger went on to say, Disney’s continued strong performance is a direct result of the companies proven strategic focus on great branded content, innovative technology and global growth. Disney said they are pleased with the results in Q2 and remain confident in their ability to continue to deliver significant shareholder value over the long term.
Diluted earnings per share (EPS) for the quarter increased 15% to $1.50 from $1.30 in the prior-year quarter. EPS for the six months ended April 1, 2017 increased to $3.05 from $3.04 in the prior-year period. Excluding certain items affecting comparability, EPS for the six months increased 2%.
The Parks and Resorts segment (which includes Disney Cruise Line) saw revenue increase for the quarter 9% to $4.29 billion with income up 20% to $750 million. Operating income growth for the quarter was due to the opening of Shanghai Disney Resort in the third quarter of the prior year and an increase at our domestic parks and resorts. Segment results were adversely impacted by the timing of the Easter holiday, which occurred in the second quarter of the prior year compared to the third quarter of the current year. This impact was partially offset by the shift of the New Year’s holiday relative to our fiscal periods. The New Year’s holiday fell in the second quarter of the current year whereas it fell in the first quarter of the prior year.
Operating income growth at our domestic parks and resorts was due to higher volumes, driven by increased attendance and guest spending on food and beverage, as well as higher operating participant income from Disney Springs. These increases were partially offset by higher costs. Higher costs were due to labor and other cost inflation, increased marketing spend and higher expenses for new guest offerings, partially offset by efficiency initiatives.
Unlike previous quarterly earnings reports, Disney Cruise Line was not specifically mentioned in the release.
For more information and an overall report click over to the Q2-2017 Earnings Report.