Disney Delivers Q2 Gains

BURBANK, May 9: For the second quarter of this year, The
Walt Disney Company’s profits rose 27 percent to $931 million, despite revenues
remaining flat at $8.1 billion.

"I'm pleased to report another excellent quarter, with
double digit increases in earnings per share as well as operating income across
all of our business segments," said Robert A. Iger, the company’s
president and CEO. "Disney's second quarter results confirm the strength
of our strategic vision and the quality of the management team that is
executing on it."

Revenues for the quarter were just 1 percent to $8.07
billion from $8.03 billion, while operating income rose 26 percent to $1.8
billion. For the six months that ended March 31, 2007, revenues were up 5 percent
to $17.8 billion, delivering an operating income of $3.8 billion, a 34 percent
gain, and a profit of $2.6 billion, a 79 percent gain.

Media Networks revenues for the quarter were flat at $3.6
billion and segment operating income increased 21 percent to $1.2 billion.
Cable networks revenues rose 7 percent to $1.9 billion, but broadcasting
revenues fell 7 percent to $1.7 billion, as a result of the absence of the
Super Bowl and fewer sports hours on ABC. At the cable networks, operating
income rose 19 percent to $963 million, and broadcasting operating income rose
33 percent to $212 million. The cable networks growth was led by ESPN and, to a
lesser extent, the international Disney Channels.

Parks and Resorts revenues for the quarter increased 9 percent
to $2.4 billion and segment operating income increased 19 percent to $254
million.

Studio Entertainment revenues for the quarter decreased 13
percent to $1.6 billion and segment operating income increased 60 percent to
$235 million. Segment operating income growth was primarily due to improved
domestic theatrical distribution results driven by a better-performing slate of
titles in the current quarter and lower distribution expense due to timing of
releases. Significant current-quarter releases included Wild Hogs and Bridge to Terabithia.

Consumer Products revenues for the quarter increased 14
percent to $516 million and segment operating income increased 20 percent to
$125 million.