Walt Disney CEO Robert Iger Won’t Extend Contract After 2018

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Walt Disney CEO Robert Iger Won’t Extend Contract After 2018
Walt Disney Co. headquarters in Burbank.

*This story has been updated to more accurately reflect Disney’s quarterly financial figures.

Walt Disney Co.’s Chief Executive and Chairman Robert Iger does not “currently plan” to extend his contract after June 2018, he told investors today.

His comments came in a call with analysts after Disney second quarter results fell short of expectations.

While its movies did blockbuster business, television properties and consumer products performed less well.

The Burbank entertainment empire announced it has let go of Infinity, its video game publishing business, which resulted in a $147 million charge against its quarterly earnings.

“It’s a changing space and we’re better off managing the risk that business delivers by licensing instead of publishing,” said Iger of the loss.

The Burbank-based studio reported just shy of $13 billion in quarterly revenue for its second fiscal quarter ended April 2, an increase of 4 percent over the prior quarter. Diluted earnings per share increased 6 percent to $1.30 from $1.23 in the prior-year quarter, falling short of analyst expectations of $1.40 a share. After-hours trading sent the company’s shares down more than 6 percent after the earnings were released.

As well as discussing his future plans, Iger’s comments focused on the “unbelievable momentum” of Disney’s record-breaking year for its film business, citing that studio segment revenue for the quarter increased 22 percent over the prior quarter to $2.1 billion thanks to the global success of “Zootopia” and the continuing high grosses for “Star Wars: The Force Awakens.”

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