{"id":51685,"date":"2017-11-10T06:41:45","date_gmt":"2017-11-10T06:41:45","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=51685"},"modified":"2017-11-10T06:41:45","modified_gmt":"2017-11-10T06:41:45","slug":"new-star-wars-trilogy-raises-hopes-after-disney-results-miss-target","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/new-star-wars-trilogy-raises-hopes-after-disney-results-miss-target.html","title":{"rendered":"New Star Wars trilogy raises hopes after Disney results miss target"},"content":{"rendered":"

New Star Wars trilogy raises hopes after Disney results miss target<\/span><\/strong><\/span><\/h2>\n

New Star Wars trilogy raises hopes after Disney results miss target: The force of \u201cStar Wars\u201d lifted Walt Disney Co (DIS.N) shares on Thursday as the promise of a new film trilogy overshadowed disappointing quarterly results and struggles at the media company\u2019s television business.<\/span><\/p>\n

The storied movie studio and theme park operator is scrambling to keep viewers who are abandoning its current top money maker, cable networks. The power of its characters and brands are the reason many investors stick with the company despite its challenges.<\/span><\/p>\n

Disney shares rose more than 1 percent after Chief Executive Bob Iger said Disney had struck a deal with Rian Johnson, director of upcoming film \u201cStar Wars: The Last Jedi,\u201d to create a new trilogy in the blockbuster science fiction series.<\/span><\/p>\n

A live-action \u201cStar Wars\u201d TV series also is being developed for a streaming service that Disney is launching to capture online audiences, Iger said.<\/span><\/p>\n

Disney shares rose about 1 percent from their Thursday closing price to $103.57 after the \u201cStar Wars\u201d announcements, reversing an initial falloff after Disney\u2019s results raised concerns about cable subscriptions.<\/span><\/p>\n

Subscribers and advertising revenue both fell at ESPN, the sports powerhouse that is seen as a proxy for Disney\u2019s ability to fight the rapid migration of audiences to online viewing. Affiliate revenue rose and overall results at ESPN were comparable to the prior year for the quarter that ended in September, Disney said.<\/span><\/p>\n

Total revenue from Disney\u2019s cable business, the largest unit which includes ESPN and the Disney Channel, fell marginally to $3.95 billion in the fourth quarter, missing the $4.06 billion consensus of analysts polled by Thomson Reuters I\/B\/E\/S.<\/span><\/p>\n

To address challenges in its TV networks business, Disney is developing family-friendly streaming services that it will sell directly to consumers to compete with Netflix Inc (NFLX.O) and other rivals. Building those businesses tops the company\u2019s agenda for the next year, Iger told analysts on a conference call.<\/span><\/p>\n

\u201cWe believe creating a direct-to-consumer relationship is vital to the future of our media businesses, and it\u2019s our highest priority this year,\u201d he said.<\/span><\/p>\n

New Disney releases will go to the company\u2019s own service rather than Netflix, starting in 2019, and Iger on Thursday said the new service would be priced \u201csubstantially below\u201d Netflix, a reflection of having less content.<\/span><\/p>\n

Disney\u2019s sports-focused service will launch in early 2018 and will be called ESPN Plus, Iger said.<\/span><\/p>\n

Investors remain concerned about Disney\u2019s cable business and were buoyed by the potential of the \u201cStar Wars\u201d franchise and the pricing of the streaming service, Tigress Financial Partners analyst Ivan Feinseth said. \u201cThe Last Jedi,\u201d hitting theaters in December, could ring up $2 billion in global box office sales, he said.<\/span><\/p>\n

Disney shares have had a difficult year, falling roughly 1 percent, while the S&P 500 has risen 15 percent.<\/span><\/p>\n

Disney also held talks in recent weeks about buying some of Twenty-First Century Fox\u2019s (FOXA.O) film and TV businesses, according to media reports, which could bring Disney more content to compete with Netflix and others.<\/span><\/p>\n

Disney did not comment on the Fox talks on the call with investors.<\/span><\/p>\n

Disney recently traded at 16 times expected earnings, compared with 14 times earnings for Time Warner and 13 times earnings for Fox, according to Thomson Reuters data.<\/span><\/p>\n

A two-day closing of Disney\u2019s Florida resorts amid a hurricane and the cancellation of an animated movie were among one-time items that reduced operating income by about $275 million, or about 11 cents per share, the company said.<\/span><\/p>\n

Disney\u2019s movie business generated revenue of $1.4 billion in the quarter, down about 21 percent and missing analysts\u2019 average estimate of $1.61 billion. Broadcast revenue of $1.51 billion missed Wall Street\u2019s target of $1.69 million, and Disney\u2019s theme parks posted revenue of $4.67 billion, just missing expectations of $4.70 billion.<\/span><\/p>\n

Disney\u2019s total revenue fell to $12.78 billion in the quarter ended Sept. 30 from $13.14 billion a year earlier.<\/span><\/p>\n

Net income attributable to the company declined to $1.75 billion from $1.77 billion.<\/span><\/p>\n

Excluding items, it earned $1.07 per share.<\/span><\/p>\n

Analysts on average had expected an adjusted profit of $1.13 per share and revenue to rise to $13.23 billion.<\/span><\/p>\n

Source:http:\/\/www.reuters.com\/article\/us-walt-disney-results\/new-star-wars-trilogy-raises-hopes-after-disney-results-miss-target-idUSKBN1D933B<\/span><\/p>\n

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