Disney Revenues Up for Q1

BURBANK, February 6:
Revenues at The Walt Disney Company were up 9 percent to $10.5 billion for the
first quarter, but net income dropped 26.5 percent to $1.25 billion.

“We’ve started off 2008
with another outstanding quarter, marked by strong creative and operational
performances,” said Robert A. Iger, Disney’s president and CEO. “These results
once again highlight the quality of our content and our unique ability to
leverage it across our many businesses and territories.”

Media Networks revenues
for the quarter increased 10 percent to $4.2 billion and segment operating
income increased 28 percent to $908 million. Cable network revenues were up 13
percent to $2.4 billion, with an operating income of $586 million, a 27-percent
gain. The gains were driven by ABC Family and the Disney Channels in the U.S.
Broadcasting revenues rose by 6 percent to $1.8 billion, but operating income
was up 30 percent to $322 million. This was driven by higher prime-time ad
revenue at ABC, offsetting increased programming costs.

Studio Entertainment’s
segment operating income for the quarter decreased 15 percent to $514 million,
while revenues were essentially flat at $2.6 billion. Lower segment operating
income was primarily due to a decrease in U.S. home entertainment, partially
offset by increases in worldwide theatrical distribution and music
distribution.

Parks and Resorts revenues
increased 11 percent to $2.8 billion and segment operating income increased 25
percent to $505 million. Operating income growth was driven by increases at
Walt Disney World and Disneyland Resort Paris, and improved performance at Hong
Kong Disneyland Resort.

Consumer Products revenues
increased 29 percent to $870 million and segment operating income increased 38
percent to $322 million, led by increases at Merchandise Licensing and Disney
Interactive Studios.

—By Mansha Daswani