Second quarter earnings for The Walt Disney Company exceeded expectations with a 10 percent increase in revenue from Q2 2013, due in large part to the success of Frozen and ongoing film Marvel releases.
Consumer products revenues for the quarter increased 16 percent to $885 million. Segment operating income increased 37 percent to $274 million due to increases in the merchandise licensing and retail businesses.
The increase in operating income at merchandise licensing, according to Disney, was driven by the performance of Disney Channel, Mickey and Minnie and Planes merchandise, as well as lower acquisition accounting impacts, which reduced revenue recognition in the prior-year quarter.
For the retail business, higher operating income for the quarter was due to comparable store sales growth in Japan and North America, a new wholesale distribution business in North America and higher online sales in North America.
Interactive revenues for the quarter increased 38 percent to $268 million, driven by the strength of the Disney Infinity console platform, which was released in the fourth quarter of 2013, as well as growth in the Japan mobile business.
Studio Entertainment revenues for the quarter increased 35 percent to $1.8 billion as a result of increases in domestic home entertainment (which was driven by higher unit sales reflecting the success of recent film releases), international theatrical and television and subscription video on demand distribution. The contrast from Q2 2013 was particularly stark due to the fact that there was no comparable Marvel title released in the prior year as Thor: The Dark World was this year.
Higher international theatrical results also reflected the strength of Frozen in the current quarter compared to Wreck-It Ralph and Oz The Great And Powerful in Q2 2013.