Disney Profit More Than Doubles

BURBANK, November 10: The Walt Disney Company’s fourth
quarter saw profits more than double to $782 million, while full-year profit
was up 33 percent to $3.4 billion.

The company delivered full-year revenues of $34.3 billion, a
7 percent gain. For the quarter, revenues were up 14 percent to $8.8 billion.

"Disney had a spectacular year, posting record
revenues, record net income, and record cash flow," said Bob Iger, the
president and CEO of The Walt Disney Company. "It is a result of the
incredible creativity at our company."

At the media networks, full-year revenues rose 11 percent to
$14.6 billion, posting an operating income of $3.6 billion, a 12 percent gain.
Cable networks posted full year revenues of $8 billion, a 10 percent gain, and
income of $3 billion, led by ESPN. Broadcasting revenues were up 12 percent to
$6.6 billion, and income rose 31 percent to $606 million. Quarterly revenues
for the segment were up 10 percent to $3.7 billion, with operating income up 18
percent to $883 million. Cable networks contributed $2.2 billion in revenues,
up 16 percent, delivering a segment income of $854 million, a 22 percent gain.
Broadcasting revenues in the quarter were up just 1 percent to $1.5 billion,
and segment operating income dropped 40 percent to $29 million. While ratings
and ad revenues were up at ABC and DVD sales of Touchstone Television series
posted gains, the division saw expenses rise with the roll-out of Disney
branded mobile phone services and the FCC license impairment charge.

The studio entertainment segment saw full-year revenues drop
1 percent to $7.5 billion, but operating income soared from $207 million to
$729 million. For the quarter, revenues were up 33 percent to $2 billion, and
the segment emerged from Q4 2005’s $313 million loss to post a profit of $214
million. Key titles for the division included Pirates of the Caribbean: Dead
Man's Chest, The Chronicles of
Narnia: The Lion, The Witch and The Wardrobe
and Disney/Pixar's Cars.

Consumer products revenues for the year gained 3 percent to
$2.2 billion, with profit up 14 percent to $618 million. For the quarter
revenues were up 9 percent to $564 million, while operating income was up just
1 percent to $139 million.

Parks and resorts saw fiscal 2006 revenues climb 10 percent,
to $9.9 billion, and operating income was up 30 percent to $1.5 billion. Q4
revenues were up 8 percent to $2.5 billion, and operating profit gained 28
percent to $396 million.