Disney Profit Slips 6.7 Percent

BURBANK: The Walt Disney Company’s fourth-quarter profit fell by 6.7 percent to $835 million, but net income for the full year gained 20 percent to $3.96 billion.

Revenues, meanwhile, were stable in the quarter at $9.7 billion and up 5 percent in the year to $38.06 billion. The company recorded $270 million in restructuring and impairment charges in the current year.

“The 2010 fiscal year was a financial and strategic success for The Walt Disney Company with performance driven by great content like Toy Story 3 and the way we benefited from that content across our many businesses," said Robert A. Iger, president and CEO. "Our fourth quarter earnings grew solidly after factoring out a programming writeoff at one of our equity networks, the timing of ESPN revenue recognition and the effect of one fewer week of operations this year than last. With the acquisition of Marvel, our brand and franchise portfolio is stronger than ever and we’re confident our global growth strategy positions the company well to thrive in the coming years.”

At the Media Networks, full-year revenues gained 6 percent to $17.2 billion, with a segment operating income up 8 percent to $5.1 billion. The cable networks brought in $11.5 billion, up 9 percent, with operating income of $4.5 billion, reflecting a 5-percent gain, led by ESPN and the Disney Channels. Broadcasting revenues were up slighting to $5.7 billion, and operating income rose 30 percent to $659 million. In the quarter, meanwhile, Media Networks revenues fell 7 percent to $4.4 billion, and operating income was down 18 percent to $1.2 billion. Cable revenues fell 6 percent to $3.1 billion, and broadcasting was down 7 percent to $1.3 billion. In the quarter, cable networks’ operating income was down 28 percent to $1 billion, while broadcasting operating income rose from $2 million to $147 million.

Studio Entertainment’s revenues rose 9 percent in the year to $6.7 billion, posted a dramatically improved operating income of $693 million. In Q4, revenues increased 6 percent to $1.6 billion with segment operating income of $104 million.

Parks and Resorts revenues for the year increased 1 percent to $10.8 billion and segment operating income decreased 7 percent to $1.3 billion. For the quarter, revenues decreased 1 percent to $2.8 billion and segment operating income decreased 8 percent to $316 million. Consumer Products revenues for the year increased 10 percent to $2.7 billion and segment operating income increased 11 percent to $677 million. For the quarter, revenues increased 13 percent to $730 million and segment operating income increased 22 percent to $184 million.