Disney shares drop as the entertainment company reports its earnings results for Q2. Walt Disney Company (NYSE:DIS) reported a revenue increase of 9% since the second quarter of 2017, rising from $13.34 billion US to nearly $14.55 billion. So what’s going on this quarter?
The company’s media networks made up a bulk of its revenue, reaching a total of nearly $6.14 billion, followed by its parks and resorts at $4.88 billion, studio entertainment at $2.45 billion, and consumer products and interactive media at $1.08 billion.
Studio entertainment increased by 21% and segment operating income increased by 29%, which Disney has said is due to an increase in the success of overall entertainment and theatrical distribution.
>>Twenty-First Century Fox to be Acquired by Disney
Disney Shares Drop
Disney has released several blockbusters films recently, mainly from Marvel Studios which Disney acquired in 2009, such as Black Panther and Avengers: Infinity War.
CEO and Chairman, Robert A. Iger, believes that the company’s “ability to create extraordinary content like Black Panther and Avengers: Infinity War…strengthen [Disney’s] confidence that [they] are very well positioned for future growth.”
According to Disney, Black Panther was part of the reason why entertainment and theatrical distribution increased, but this was “was partially offset by the performance of ‘A Wrinkle in Time’.”
>>Twentieth Century Fox & Netflix Continue Legal Battle Over ‘Poaching’ Employees
Sales of Star Wars: The Last Jedi, a production by Lucasfilm which Disney acquired in 2012, also contributed to an increase in entertainment and theatrical distribution.
Disney’s share value fell by nearly 2% after the results were announced and, as of 12:30 pm EDT, shares were hovering just below $100.00.
The company has also reached a low of $99.30.
Comparatively, Disney closed at a share value of $101.79 on Tuesday.
Featured Image: Depositphotos/© lev1977
