Disney revenues are growing thanks to "Star Wars"

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

In total, almost all Disney areas 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 by the slower growth rates compared with analysts' forecasts for cable and other Disney networks.
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The Disney cable network revenue decline was offset by a record rental profit from the Star Wars saga continuation. According to Disney representatives, the main reason for the decline in income from broadcasting content to cable networks has been the decline in interest in ESPN, but the potential of Star Wars may be the main incentive for revenue growth in the near future. Together with the Star Wars film distribution, there was a similar positive effect on the licensing of toys, which gradually declined after the release of the “Cold Heart” cartoon.



Compared to other film studios, Disney was able to show significant growth. Thus, one of the largest 21st Century Fox and Viacom reported a decrease in the level of profits, which led to a fall in the value of shares due to the reaction of investors to these forecasts. If investors really see the potential in the Star Wars franchise, which includes not only the films in the George Lucas universe, but also individual TV shows, games and other projects, then Disney shares can soar in price even against the background of negative information about the fall in content. ESPN. In the meantime, Disney securities lost 3% in the first hours of trading after the results were announced.