Disney reports 7% revenue increase

<p>Walt Disney has beaten market expectations in its latest trading update.</p>

Walt Disney has reported a boost in revenue thanks to the success of its recent blockbuster movies.

The animation producer recorded a seven per cent increase during the fourth quarter taking revenue to $12.39 billion (£7.8 billion). This exceeded its initial expectation of $12.36 billion. The studio noted that hit films such as Guardians of the Galaxy and Maleficent had allowed it to achieve 18 per cent growth over the course of the period.

It is not just in the cinema where Disney has been excelling, as the release of Frozen on DVD has helped to boost figures. The company stated in its full year results that the 3D animated film has had both a strong home entertainment and theatrical performance allowing Disney to achieve record revenue of $48.8 billion.

Robert Iger, chairman and chief executive, stated that the latest results highlighted the fourth consecutive year of record performance. The company is now starting to look towards the future and other potential releases.

Mr Iger added: "We're obviously very pleased with this achievement and believe it reflects the extraordinary quality of our content and our unique ability to leverage success across the company to create significant value, as well as our focus on embracing and adapting to emerging consumer trends and technology."

As part of Disney's trading statement, it announced that it is looking release the fourth edition in the Toy Story franchise. Toy Story 3 proved a huge hit at both the box office and on the small screen generating over $1 billion. Following this success, Disney said it was inevitable a Toy Story 4 would be made.

The studio has signed up director John Lasseter, who directed Toy Story 1 and 2, and is looking at a release date of 2017.

Shares in the Walt Disney Company opened 1.10 per cent up on Friday (November 7th) at $92.

Find up to date information on the FTSE 100 and spread betting strategies at City Index.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.