Disney Quarterly Profit Up Slightly

BURBANK: The Walt Disney Company reported third-quarter profit of $1.85 billion, up just 1 percent from the $1.83 billion in the same period last year, helped in large part by revenue and profit gains at its theme parks.

Revenue grew 4.4 percent to $11.6 billion.

Media Networks revenues increased 5 percent for the quarter to $5.4 billion and segment operating income increased 8 percent to $2.3 billion. Within the Cable Networks, operating income was up 12 percent to $2.1 billion, thanks to growth at ESPN, A&E Television Networks and the U.S. Disney Channels, partially offset by a decrease at ABC Family. In the Broadcasting segment, operating income was down 21 percent to $213 million, mainly due to higher prime-time programming costs, lower program sales and decreased ad revenues, partially offset by higher affiliate revenues.

The Parks and Resorts division was quite strong. Revenues rose 7 percent to $3.7 billion and segment operating income was up 9 percent to $689 million. This was mainly due to increases at the domestic parks and resorts, thanks to increased guest spending.

Studio Entertainment revenues took a hit, down 2 percent to $1.6 billion. Segment operating income was down $112 million to $201 million, mainly due to a decrease in worldwide theatrical distribution. This was dragged down by the pre-release marketing costs for The Lone Ranger.

"We are pleased with the results we delivered in the third quarter," said Robert A. Iger, the chairman and CEO of The Walt Disney Company. "We are confident that our strategy of creating high-quality branded content positions us well for the future."