‘Ralph’ No ‘Wreck’ as Disney Posts Q2 Turnaround7 May, 2013 By: Erik Gruenwedel
Walt Disney Studios May 7 reported second-quarter (ended March 30) operating income of $118 million, compared with a loss of $84 million during the previous-year quarter when the studio had to write down the theatrical flop of sci-fi actioner John Carter.
The studio, which includes Walt Disney Studios Home Entertainment, saw revenue increase 13% to $1.3 billion due to the strong theatrical results from Oz the Great And Powerful and animated hit Wreck-It Ralph.
Ralph, which generated $471 million at the global box office, was released into the retail channel March 5. Oz generated $229 million at the domestic box office. It will be released into the retail channel June 11.
In a fiscal call, CEO Bob Iger said packaged media sellthrough and rental remain challenged, while digital transactions, including sellthrough, look promising.
“[Business] has been growing nicely on the digital front and I think that bodes well for the future,” Iger said.
The quarterly results don’t include Iron Man 3, which set the second-highest opening weekend (through May 5) in history, behind Marvel’s The Avengers last year. Disney owns Marvel Inc.
Disney’s consumer products unit, which is headed by veteran home entertainment executive Bob Chapek, saw operating income increase 35% to $200 million on revenue of $763 million, which was up 13% from last year.
Consumer products includes some packaged media distribution through domestic and Japanese-based Disney Stores and online.
“Our results reflect our successful strategy, the strength of our brands and the value of our high-quality creative content, all of which continue to drive long-term growth and shareholder value,” Iger said in a statement.