Disney profits expected to soar thanks to “Frozen” and the World Cup

Disney is expected to report high profits for the financial quarter ended June 30, thanks to a successful World Cup for ESPN and continued strong sales from hit film Frozen.

 

Analysts polled by Thomson Reuters have forecast a net income of $2.04bn (£118bn) for the quarter ended June 30, which would represent a 13 per cent increase on the same period last year ($1.89bn).

 

Revenue is also forecast to rise 5.1 per cent to $12.7bn, up from $11.58bn this time last year.

 

ESPN, a Disney subsidiary that exists within the Media Networks division of the company, enjoyed record audiences during the Fifa World Cup this summer. Their coverage averaged around 4.6m viewers a match throughout the tournament, an increase on the 3.8m average at the 2010 World Cup in South Africa. 

 

Media Networks is expected to see a three per cent increase in revenue to $5.51bn as a result.

 

“Frozen”, which was released November and generated over $1bn at the box office, continues to serve as a strong source of revenue for the company through DVD and merchandise sales. 

 

Disney’s Studio Entertainment is forecast to enjoy five per cent revenue gains to $1.68bn while its Consumer Products branch is expected to see a nine per cent rise to $844m.

 

Finally, Disney’s Parks and Resorts unit is expected to report a nine per cent increase in quarterly revenues to $3.99bn. The company owns 11 theme park resorts around the world which attracted a total of 132.5m guests in 2013, according to a report authored by AECOM Economics and the Themed Entertainment Association.

 

The official financial results will be reported tonight at 9.15pm GMT. Disney CEO Bob Iger will then appear in a live webcast at 10pm GMT, which can be accessed here.