The Walt Disney Company reported all-time high profits for its fiscal third quarter, along with impressive growth in profits for the Parks & Resorts division.
For the period of April to June 2014 Disney reported net income of $2.25 billion, up 22% from the same period last year. Total revenues grew by 8% to $12.47 billion.
Disney's film unit continued to be a primary driver of these increases with successes like "Frozen", "Captain America 2: The Winter Soldier" and "Maleficent." Media networks including ESPN and ABC posted income of $2.3 billion, a figure identical to the same period last year.
Profits at Disney's Parks & Resorts division--which includes Disney Vacation Club--increased 23% to $848 million. Increased guest spending helped drive the increase, although 3Q 2014 numbers were aided by the shift in the Easter holiday period. In fiscal 2013, Easter fell in the second quarter.
Start up costs for the MyMagic+ initiative have continued to be a drain on theme park profitability. However, Disney Chairman and CEO Bob Iger told investors that they expect MyMagic+ to begin contributing to revenue growth in the fiscal fourth quarter which runs from July to September 2014.
Iger also dropped hints regarding an expanded Star Wars presence in the Disney theme parks. Iger claimed that the design process is well under way for Disney's answer to the expanding Harry Potter presence at Universal Studios theme parks. Regading Star Wars, Iger stated that "we expect to provide details about this sometime next year."
Rumors have pointed toward a Star Wars-themed makeover of Disneyland'sTomorrowland and an expanded role at Walt Disney World'sDisney's Hollywood Studios.
