Walt Disney’s profit rises 27 percent on strength of ‘Frozen’ movie franchise

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Walt Disney’s profit rises 27 percent on strength of ‘Frozen’ movie franchise


Category: Business News

Walt Disney on Tuesday continued its red-hot earnings streak with the global success of the animated blockbuster “Frozen” and a ripple effect on sales of DVDs, music and other merchandise tied to the movie.

Second-quarter net profit rose 27 percent, to $1.9 billion, as every business segment recorded double-digit growth in earnings. Revenue increased 10 percent, to $11.6 billion. Disney’s stock rose 0.6 percent in after-hours trading to $81.48.

The success of “Frozen” demonstrates the impact that one blockbuster film can have on the entertainment conglomerate’s other businesses, including theme parks, retail stores in malls, and record and DVD sales.

The company hopes to replicate the success of “Frozen” across its stock of Disney stories and characters and through acquisition of popular entertainment brands. Its purchase of Marvel’s “Thor: The Dark World” and “Captain America: The First Avenger” helped drive profit growth for its studios division. The company plans three sequels during the next decade for the “Star Wars” series through its purchase of Lucas Films.

“Frozen,” the highest-grossing animated film in history, has brought in $770 million in global revenue. The benefits of the brand are just beginning to be felt across the other business lines, according to chief executive Bob Iger.

Source: Washington Post

Published: July 5, 2014