May 8, 2019
A lack of home entertainment releases in the second quarter (ended March 31) contributed to Disney reporting a 39% drop in studio operating income to $534 million compared to operating income of $875.4 million during the previous-year period. Revenue fell 15% to $2.1 billion from $2.4 billion last year.
The decrease in home entertainment results was due to lower unit sales reflecting the performance of Thor: Ragnarok and Star Wars: The Last Jedi in the prior-year record quarter compared to no comparable Marvel or Star Wars titles in the current quarter.
Other significant titles included Ralph Breaks the Internet in the current quarter and Coco in the prior-year quarter.
The results do not include Marvel Studios’ Avengers: Endgame, which was released in the current third quarter.
Growth in TV/SVOD distribution results was due to a benefit from the adoption of new revenue accounting guidance and increases in domestic pay television title availabilities and rates, partially offset by lower free television sales in part in anticipation of the launch support of Disney+.