The Walt Disney Company reported a 10-percent jump in profits for its fourth quarter and 12-percent increase for the year, despite a decline in operating income at its cable networks, including Bristol-based ESPN.
Disney booked net income of $1.77 billion, or $1.10 per diluted share, for the quarter ended Oct. 1, up from $1.6 billion, or 95 cents, for the same period a year earlier. Likewise, for the full year, net income rose to nearly $9.4 billion, or $5.73 per diluted share, in 2016, compared with just under $8.4 billion, or $4.90, in 2015.
Operating income at the company’s cable networks decreased $207 million to $1.4 billion in the fourth quarter due to decreases at ESPN and the Disney Channels, which was partially offset by Disney’s Freeform channel.
Disney said ESPN’s declines were the result of lower advertising and affiliate revenue, a drop in subscribers, partially offset by contractual rate increases, and higher programming and production costs.
Fiscal 2016 was Disney’s sixth consecutive year of record results, highlighted by the opening of Shanghai Disney Resort, the return of Star Wars, and Disney Studio’s record-breaking $7.5 billion in total box office revenue, said Robert A. Iger, chairman and CEO.
“We’re very pleased with our performance for the year, delivering the highest revenue, net income and earnings per share in Disney’s history,” said Iger. “We remain confident that Disney will continue to deliver strong growth over the long-term as we further strengthen our brands and franchises, our technological capabilities, and our international presence.”
