Tencent Securities News according to foreign media reports, Walt Disney said on Tuesday that the outstanding performance of Marvel's new film Black Panther led to a 21% year-on-year increase in revenue from the company's studio entertainment business in the second quarter compared with the same period last year. In addition, the company is considering adding theme parks in China.
Performance summary
Walt Disney Company's second-quarter revenue was $2.45 billion, exceeding Wall Street's average estimate of $2.19 billion. In an earnings call held on the same day, Bob Iger, chairman and chief executive of Walt Disney Company, said that nine of the top 10 box office films in the past six years belonged to Disney.
Walt Disney reported second-quarter earnings of $1.84 a share, better than market expectations of $1.70, and revenue of $14.55 billion, better than market expectations of $14.11 billion.
Financial analysis
The following is a comparison of Walt Disney's revenue by business units with analysts' forecasts for the second quarter:
Media and Internet: revenue of $6.14 billion, analysts expect $6.09 billion
Theme park: revenue of $4.88 billion, analysts expect $4.69 billion
Film studio: revenue of $2.45 billion, analysts expect $2.19 billion
Consumers and interactions: revenue of $1.08 billion, analysts expect $1.14 billion.
Add a theme park
In a conference call on Tuesday, analysts asked Iger whether Walt Disney was considering adding theme parks in other countries and regions around the world. Iger replied: "We think there are opportunities for development in the Chinese market." Of course, other countries and regions in the world may also have development opportunities. "
Iger said Disney has been investing in new attractions in theme parks around the world, including Toy Story theme parks in Shanghai and Orlando. Star Wars: the Edge of the Milky way will be opened at Disneyland and Disney World next year. "the more popular our intellectual property rights are, the more we will need theme parks," Iger said on a conference call. "
Iger also said the company was assessing the possibility of setting up theme parks in other parts of the world based on factors such as economic and political stability. "this does not mean that we will build a new theme park soon, but we will consider these things."
Walt Disney Company shares rose more than 1 per cent in after-hours trading, driven by better-than-expected results. The company's shares have fallen about 6 per cent so far this year.
Want to acquire 21st Century Fox
Walt Disney Company's results come as the company intends to acquire most of 21st Century Fox's assets through large-scale mergers and acquisitions. The boards of directors of both companies have asked Iger, who has long been chief executive of Walt Disney Company, to remain in office until the end of 2021.
The completion of the deal will give Disney a stake in Fox's television and film studios, the live broadcast network of local sporting events, the National Geographic Channel, and Sky India, the Asian pay-TV operator, as well as Sky TV. In addition, Walt Disney Company will also take a stake in Fox's streaming video service provider Hulu. Together with the stake already held, the deal will make Walt Disney Company the controlling shareholder of Hulu.
Comcast Corp is preparing to bid for Fox assets through a cash deal if AT&T Inc's acquisition of time Warner is approved by the US Department of Justice, it was reported on Monday. According to the source, Comcast Corp's bid will surpass that of Walt Disney Company and will fully acquire Sky TV.
Mr. Iger declined to comment on Comcast Corp's bid for Fox assets during a conference call on Tuesday. He said he would not comment on market rumors or speculation. However, Iger said he is confident that Walt Disney Company will be able to complete the acquisition of Fox assets.
"We made a great deal. In fact, shareholders reacted very positively to the deal and we are confident in our ability to continue to complete the deal, "Mr Iger said in an interview with CNBC. He also stressed that Walt Disney's offer had been unanimously approved by Fox's board of directors. "they obviously not only believe the price we pay, but also understand how we close the deal," he said.
CNBC had previously reported that the main reason for Rupert Murdoch's decision to sell most of Fox's assets was for fear of investing heavily in content. Because streaming media video services, including Amazon.Com Inc and Netflix, have invested huge amounts of money, the competition for content bidding has become increasingly fierce. Walt Disney's acquisition of Fox's assets will further expand the company's content product line and enhance its competitiveness. (compiled / Mingyue)