Disney Delivers Profit, Revenue Gains

BURBANK, November 9: Fiscal 2007 profit at The Walt Disney
Company rose 39 percent to $4.7 billion, while profit for the fourth quarter
was up 38 percent to $877 million.

“We’ve delivered another year of outstanding financial
results, powered by across-the-board creative strength,” said Robert A. Iger,
Disney’s president and CEO. “We believe our strong brands, combined with
high-quality creative content and our ability to promote and distribute that
content across multiple businesses and platforms, gives us a unique ability to
continue delivering growth and value to our shareholders.”

In the year, revenues were up 5 percent to $35.5 billion,
while operating income gained 23 percent to $7.8 billion. And in the quarter, revenues
increased by 3 percent to $8.9 billion, delivering an operating income of $1.8
billion, a 14-percent change.

The Media Networks segment was a key driver, with
fiscal-year revenues up 7 percent to $15 billion and operating income
increasing by 23 percent to $4.3 billion. For the quarter, revenues increased
14 percent to $4 billion and segment operating income increased 25 percent to
$1.1 billion. The cable networks led the division, with $9.2 billion in
revenues for the year, a 12-percent increase, and $2.8 billion for the quarter,
a 24 percent increase. Operating income, meanwhile, rose 19 percent in the year
to $3.6 billion and 30 percent in the quarter to $1.1 billion. Broadcasting
revenues, meanwhile, fell by 1 percent to $5.9 billion for the year, and by 5
percent to $1.2 billion for the quarter. While broadcasting reported a $703
million operating income, a 48-percent gain for fiscal 2007, the fourth quarter
showed an operating loss of $30 million.

The Studio Entertainment posted a segment operating income
of $1.2 billion, a 65-percent gain, while revenues were flat at $7.5 billion.
For the quarter, segment operating income decreased 21 percent to $170 million
and revenues decreased 24 percent to $1.5 billion. For the quarter, lower
operating income was primarily due to a decrease in worldwide theatrical
distribution reflecting the strong performance of Pirates of the Caribbean:
Dead Man’s Chest in the prior-year quarter,
partially offset by lower film cost write-downs and improvements in the Disney
music business driven by the strong performance of Hannah Montana and High School Musical.

Parks and Resorts revenues for the year increased 7 percent
to $10.6 billion and segment operating income increased 11 percent to $1.7
billion. For the quarter, revenues increased 10 percent to $2.8 billion and
segment operating income increased 9 percent to $430 million. Operating income
growth for both the year and quarter was due to increases at Walt Disney World,
Disneyland Resort Paris and Disneyland Resort, partially offset by lower
performance at Hong Kong Disneyland Resort.

Consumer Products revenues for the year increased 7 percent
to $2.3 billion, and segment operating income increased 2 percent to $631
million. For the quarter, revenues increased 5 percent to $590 million, and
segment operating income increased 10 percent to $153 million.

—By Mansha Daswani