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Friday, Aug 19, 2022

Disney Profit Helped By Movies

Walt Disney Co., the second-largest U.S. media company, may say today that second-quarter profit gained on box-office sales for “National Treasure” and “Hannah Montana,” and the DVD release of “Enchanted,” Bloomberg News reports.

Net income probably rose 7.1 percent to $997.2 million, or 51 cents a share, from a year earlier, according to the average of nine analysts’ estimates compiled by Bloomberg. Sales in the period ended March 29 may have climbed 5.4 percent to $8.51 billion, the average of 17 estimates.

Chief Executive Officer Robert Iger weathered a slowdown in the U.S. economy with sales of movie tickets and DVDs, and more theme-park visitors. “National Treasure: Book of Secrets” took in most of its $456.4 million in global sales in the period, researcher Box Office Mojo LLP said. “Hannah Montana” opened Feb. 1 with $31.1 million in weekend sales at 683 locations, a per-screen record. “Enchanted” DVDs came out in mid-March.

“There was stronger box office and DVD performance at the studio,” as well as increased theme-park attendance, Michael Morris, an analyst at UBS Securities LLC in New York, said in an interview. “We haven’t seen a slowdown yet, but it would be imprudent to not at least consider the possibility.”

Disney, based in Burbank, California, rose 2 cents to $33.31 at 12:11 p.m. in New York Stock Exchange composite trading. Before today, the shares had gained 3.1 percent this year, compared with a 2.2 percent dip for Time Warner Inc., the world’s largest media company, and a 13 percent drop for Viacom Inc. Class B shares.

Spokesman Jonathan Friedland said Disney won’t comment on results before earnings are released. The company is scheduled to report after the close of U.S. markets today.

Read the full Bloomberg story



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