Disney revenue grows thanks to "Star Wars"

    This week, Disney reported for the first fiscal quarter of 2016, and the results on total revenue exceeded all analyst expectations. Total revenue amounted to $ 15.24 billion, and profit of $ 2.88 billion - compared to the same period last year, this figure increased by 32%, setting a new record for Disney.

    Altogether, almost all Disney businesses showed growth, but this may not be enough for stock growth in the near future due to skepticism on the part of investors who were disappointed at the slower growth rate compared to forecasts of revenue analysts from cable and other Disney networks.

    Disney’s cable revenue decline was offset by record-breaking rental revenue for the continuation of the Star Wars saga. According to Disney representatives, the main reason for the decrease in revenue from broadcasting content to cable networks was a decrease in interest in ESPN, but the potential of Star Wars could be the main incentive for revenue growth in the near future. Together with the Star Wars film distribution, they also had a positive effect on toy licensing revenues, which gradually declined after the release of the Frozen cartoon.

    Compared to other movie studios, Disney was able to show significant growth. Thus, one of the largest 21st Century Fox and Viacom reported a decrease in profit levels, which led to a drop in the value of stocks due to investor reactions to these forecasts. If investors really see the potential in the Star Wars franchise, which includes not only films on the George Lucas universe, but also individual series, games and other projects, then Disney stocks can skyrocket even against the backdrop of negative information about falling demand for content ESPN. In the meantime, Disney securities lost 3% in the first hours of trading after the announcement of the results.

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