On Tuesday, the Walt Disney Company reported record quarterly earnings of $2.5 billion for its third fiscal quarter ended June 27, compared to $2.2 billion during the prior-year quarter. Diluted earnings per share (EPS) for the third quarter increased 13 percent to $1.45 from $1.28 in the prior-year quarter. EPS for the nine months ended June 27 increased 16 percent to $3.95 from $3.40 in the prior-year period, while excluding certain items affecting comparability, EPS for the nine months increased 15 percent.
Consumer products revenues for the quarter increased 6 percent to $954 million, while segment operating income increased 27 percent to $348 million. Higher operating income was due to an increase in merchandise licensing revenues, as well as lower third-party royalty expense. Merchandise licensing revenue growth reflected the performance of merchandise based on Frozen, Marvel’s The Avengers, and Star Wars, partially offset by lower revenues from Spider-Man merchandise.
Interactive revenues for the quarter decreased by $58 million to $208 million, while segment operating income decreased by $29 million to break even. Lower operating income was primarily due to lower results from Disney Infinity and decreased sales of console game catalog titles, partially offset by the continued success of Tsum Tsum. The decrease from Disney Infinity was due to decreased unit sales and lower average net effective pricing.
